Digital money is a common phenomenon, which is also changing world economies. Also known as cryptocurrencies, most banks, businesses, and jurisdictions are very much are of their importance and functionality.
What Are Cryptocurrencies?
Cryptocurrencies are a digital money. They are built with unique and highly functional encryptions which allow there secure transactions that are difficult to fake. Cryptocurrencies come as a medium of exchange where money payment operates at a peer-to-peer level. This allows direct payment between individuals and business without having to pass through an intermediary such as a bank. It also avoids stringent rules of receiving and sending money that is a negative nature of traditional payment systems.
An example of popular cryptocurrency on the market is Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. These currencies comprise of essential features, including the fact that they are highly decentralized. It means that they are not under the control of any one single entity. Instead, they rely on distributed ledger mostly associated with Blockchain technology.
Another critical feature of the cryptocurrencies is that they are designed with private and public keys for reasons of security, making all transactions not only simple quite but quite safe. The cryptocurrencies also move away from the steep transaction fees, making conducting business much cheaper.
What Is Cryptocurrencies Trading
Cryptocurrency trading, just like the traditional fiat currency trading, involves trading in tokens of the digital money types. As such, trading in cryptocurrency can quickly be done on specialist exchange platforms, such as MGCLogic.
If you are starting, the first thing, therefore, is to get your fiat currency onto the market. The fiat currency could be in the form of USD, EUR, Pounds, or any other. All you need to do is go to MGC Logic’s website, register, get verified, and start buying.
This exchange platform is one of the best, and it has become quite popular hosting so many traders from around the globe in recent years. It features the most user-friendly interface, allowing for the quick registration process. Also, transactions as quite fast and secure, and it quickly links your bank accounts or credit cards to its payment system. This enables you to trade in any of the leading cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin cash.
If you want to get your money onto the exchange platform, you can make a wire transfer, or buy the coins.
The platform is also embedded with web and mobile apps, which makes the whole process easy and fast. You also get to access 24/7 customer support, meaning that they can quickly react to any event at any time.
Newbies can enroll in their trading academy to quickly learn the ropes. The interactive tutorial and video lessons allow you to enter the market with lots of trading skills and confidence.
Cryptocurrencies Trading VS Regular Trading and Investing
Most beginners confuse between cryptocurrency trading and regular trading involving such financial investment like stocks and forex trading. They often think it’s the same, but the truth couldn’t be further apart. They are not only different, but cryptocurrencies come along as a better trading option. Here are some of the reasons why
- Profitability: It’s tough to make a profit on stocks. The main reason is trading in commodities and forex is associated with several hurdles. These include costs and paperwork processes before you can embark on your first trade. It’s a long-term venture where you have to wait in the wings but also cater for such necessities as margin and trading fees. Also, you must put in a lot of effort into the analysis.
The opposite is true for cryptocurrency trading. You can start with much less capital to start realizing profits. For example, with a minimal amount of $ 100, you can easily take advantage of volatility, and start earning within a relatively short time.
- Stringent Processes: The unregulated nature of the cryptocurrency market is almost godsend. This is because, you do not need to submit large amounts of paperwork, for verification, and signing of an agreement with your brokerage firms; which is known to happen in stock and forex trading. Only necessary identity verification is required for you to start Buying cryptocurrency.
- 24/7 Operations: Most of the regular trading does not offer round the clock trading sessions. However, the popularity of cryptocurrency trading is that it’s 24/7 and caters for the changing time zones of the global trading platforms.
Homework You Need To Do Before Buying Cryptocurrencies
There are numerous exchange platforms, with equally many offers on the web. Sometimes it’s tricky, deciding which one works best and has your best interests at heart. An exchange checklist comes in handy. Some of the things to look out for include:
- Exchange Platform’s Validity: You need to find out if the exchange you want to work with is allowed to operate in your location. The best way to check is merely going to the web platform and see whether the exchange is available in your area or not.
- Platforms Reputation: You can check to from the various customer reviews to know whether other traders are happy with the way the platform works. Also, check to know how secure it is and if there has been any case of cyber-attacks against it and checking for red flags quite easy as there is plenty of customer feedback from social media sites such as Twitter, Reddit, and even YouTube.
- Platform’s Exchange Rates. Different platforms come with varying rates of exchange. Your homework should be to determine which are the most favorable.
- Safety and Security: A good exchange platform should be in a position to ask for some authentication in terms of identification. Of course, it can be quite inconveniencing, but it’s for the security of your funds and secures trading experience.
How to Technically Start Buying Cryptocurrencies
Once you have created your Cryptocurrencies trading account, the next step is to start trading. Some things look scary for a typical beginner such as graphs and technical terminology. It’s essential to learn and master them as they are vital tools of analysis, making you make the right predictions. Other than that, you need to check on the following:
- Choosing the type of coin you want to buy: the buying and selling charts comes with different columns, including for the asset, which indicates the coins you can buy.
- Storage: once you have bought your coins, you also need somewhere to store, which is a wallet. The wallet is designed to save your private key as well as your public address. The primary purpose is to store, send, and receive your cryptocurrencies.
- Security: Your private key allows you to access and send money, while your public address is where anyone can send you money. It means that you keep your private key entirely secure, while the public key can be given to others who need to see your money. There are different types of wallets, such as desktop, mobile, hardware, and paper wallet. Each of them has its advantages as well as drawbacks. When it comes to crypto exchanges, most of them allow you to buy your specific token using Bitcoin. Again, you can transact using your credit card, or bank transfer for purposes of funding your account.
What You Need To Prepare and What Are the Stages to Open an Account
It’s quite easy to sign up and create a Cryptocurrencies trading account at MGCLogic. Go to its website, and click on the register link. The screen that pops up allows you to follow the prompts and fill in the required details. You also need to go through their Terms and conditions links and ascertain that you agree with all requirements. Other prompts include;
- The phone verification process, which asks you to insert your phone number and you are asked to verify the number through a specific code.
- Adding a payment method. There are various options from which you can select, including credit/debit card, bank account transfer, and wire transfer. These payment methods can be used for either deposits or withdrawals. All information regarding the processes is right there on the platform, allowing users to familiarize.
- Verifying your identity: verification is quite necessary to avoid any criminal activities, including fraud and money laundering. Again MGCLogic is such a highly regulated exchange platform that is compliant with KYC/AML regulations. Therefore, you need to verify your identity before you use such payment options as your credit/debit card. The best thing is that the identification process is quite easy, and it does not consume too much of your time.
Although cryptocurrencies have been in existence for just a few years, their popularity keeps increasing. There so many reasons for this, but mainly because they make running businesses much easier. From the easy payment processes to fewer fees, this is what any typical trader would be looking at making profits. Besides, traders can also enjoy the immense benefits that come with the cryptocurrency exchange platforms. Buying Cryptocurrencies are associated with high volatility allowing many traders to take advantage, and make massive amounts in profits within brief periods.