With record-high rates for cryptocurrencies, the trading of cryptos is becoming increasingly popular. Despite being a risky investment with huge variation, it’s one of the best investment chances for gaining quick, big wins.
Getting started with crypto trading doesn’t have to be complicated. It’s very quick to establish an account and get started with your first trades. But trading with cryptocurrencies is also a challenging task, where you should have advanced insight into the different cryptos, closely follow the news and understand the markets they operate in, to be successful in your crypto trading.
Crypto trading is working like foreign exchange rate trading. Since the value of each currency is changing like stocks, you can speculate when the value of the valuta is high and low. The principle is to buy the cryptocurrency when the value is at a low level and sell again when you think it has reached its highest level. Then you sell again and buy something else at its low.
Currencies Controlled by National Banks vs Cryptocurrencies
You’ve seen this mechanism with traditional foreign exchange rate trading for many years, and this kind of trading only became easier with the possibility of doing online trading. But the main difference between fiat currencies (the valuta we normally use like dollars, euros or pounds) and cryptocurrencies is that the cryptos are not controlled by a central bank.
Normally central banks like the European Central Bank tried to prevent currencies from changing too much. They want stable currencies, so people can rely on their money to keep their value. A central job for a central bank is to avoid inflation, so people’s money will lose its value. Therefore, the target is a stable currency.
But cryptocurrencies are not regulated by any kind of central body. This is one of the qualities of the cryptos that attracts a lot of users. It is also enabling the currency to change a lot in its value.
60,000 Times Increased Value in 10 Years
Take the most famous crypto: Bitcoin. In 2011 the value of 1 bitcoin was 1 dollar. In 2021 it reached a record high value of 60,000 dollars. So, in just 10 years it increased its value 60,000 times! But the value of Bitcoin is also quite unstable.
In 2021 the value of Bitcoin has changed between a value of 30,000 and 60,000 dollars. In other words, it’s difficult for investors to purely predict how the currency is going to change tomorrow and when it’s going to peak. But considering that, cryptocurrencies like Bitcoins can be a form of investment with quick gains.
If you want to know more about cryptocurrencies, you can check out https://cryptomeister.com/. Here you can find ratings of the best crypto traders and reviews of different companies offering trading with cryptos. You can compare different brokers by looking into the different pro’s, fees, withdraws, deposits and fiat currencies supported. You will also find guides on how to get started with crypto investments and lists of the best currencies to invest in.