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Trading Bitcoin and Other Cryptocurrencies in 2020

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The world’s most famous cryptocurrency is about to turn eleven years old. During these years, Bitcoin and other popular cryptocurrencies have played an important role in the modernisation of the investment world. At the dawn of the third decade of the 21st century, investors can easily trade crypto coins through online trading platforms and through financial service providers on a daily basis. On the other hand, using such tools to easily trade these digital assets does not mean that it is also easy for traders to predict if an asset will build an upward or downward momentum. 

The digital currency market is not always easy to read, as values can sometimes fluctuate randomly. Some might say that investing in cryptocurrencies can in a way be compared to playing games of chance on a website like www.mansioncasino.com However, in order to avoid leaving everything on Lady Luck, traders have to invest a lot of their time on reviewing a cryptocurrency’s past performance through technical analysis. This analytical method can help identify potential upward or downward momentums of an asset.  

The primary characteristic of all cryptocurrencies is volatility. Their value can either double or plummet in just a matter of 24 hours. This extreme value fluctuation is not as common among major fiat currencies like the US Dollar or the British Pound. With that in mind, most of the crypto traders tend to favour buying and selling digital currencies through day and swing trades. There are of course those who prefer investing in crypto coins for longer periods, considering their future potential and the global demand for alternative payment options. For example, the value of Ripple will potentially increase, if this digital asset starts being used widely for purchases and general payments.

The Technology Behind Cryptocurrencies

Cryptocurrencies might seem very similar to each other, but the truth is that Bitcoin and Ethereum are as different to one another as oil is to silver. Many of them do not even require mining in order to obtain. The developers of crypto assets use different algorithms in order to make their product unique. Despite the fact that the average trader is not concerned about technologies like the blockchain, the building blocks of a crypto coin might play a role in the asset’s future use. A cryptocurrency that has the potential to transform the global economy, will definitely attract a bigger trading audience. This can in turn play its part to making that specific asset more valuable. 

Trading Bitcoin and Other Cryptocurrencies in 2020 2

Finding the Right Cryptocurrency Trading Platform

Both the trading of cryptocurrencies as well as the trading of traditional investment assets, have become widely accessible to everyone who is interested in positioning themselves on an investment. The average trader no longer needs a middleman in order to invest on Bitcoin, fiat currency pairs, commodities or stocks. Using one of the many trading platforms out there, traders can instantly enrich their portfolios, set up their analytical charts, put their strategies together and make a variety of trades. 

Nowadays, most trading platforms offer more or less the same tools, so deciding on the one to use is really up to the preference of every individual. The norm says that a trading platform will be user friendly, that it will offer numerous payment options, that all the transactions will be processed quickly and securely and finally that it will offer a variety of assets. If a trader decides to use the portfolio of an online broker, then he or she will need to make sure that the online broker is licensed and regulated by a respected authority.

Source: https://www.cryptopolitan.com/trading-bitcoin-and-other-cryptocurrencies-in-2020/

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