What is crypto trading?Cryptocurrencies have been around for more than a decade now. And it all started with Bitcoin in 2008-2009.
So what is crypto trading?
In its simplest terms, crypto trading is buying one crypto for another or buying and selling cryptocurrencies for any fiat currency (USD, EUR, etc) in hopes that the value of the cryptocurrency you bought or sold increased or decreases according to your trade.
Let me give you an example.
Let's say you have 1000 euros and you think Bitcoin price will be going up very soon. This case you would buy Bitcoin for EUR. On the other hand, if you think the price of Bitcoin will go down, you can sell Bitcoin for EUR.
Yes, you can do it even if you don't have Bitcoin yet. This is called short selling.
Of course, the latter can be done only on cryptocurrency platforms with cryptocurrency brokers not cryptocurrency exchanges. Or actually, that used to be the case.
But in essence, in crypto exchanges you own the cryptos, but can trade as well, and in just trading platforms (CFDs) you don't really own anything, but you can speculate on the prices as if you did.
And as for the previous example - you don't necessarily need to trade with EUR & Bitcoin.
You can do the same with any cryptocurrency pair that is available in your chosen cryptocurrency exchange or platform.
For example, if you have bought ETH (Ethereum), you can buy Bitcoin (or Litecoin, or any other cryptocurrency) for that as well.
We'll be updating this page soon to explain everything as thoroughly as possible.
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