How to trade cryptocurrencies effectively - Okongeorge | Digital Wealth & Empowerment How to trade cryptocurrencies effectively : Okongeorge.com
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How to trade cryptocurrencies effectively


Cyrptocurrenies are digital assets from Blockchain technology designed to work as a medium of exchange using cryptography to secure transaction and to control the creation of additional unit of the currency, and it's the most advanced and leading online trend that’s fast, easy and secured payment system. 


Cryptocurrency being a cyber money can be used to pay for goods and services, send or receive coins, trade and exchange coins for other coins or for cash. However, the acute understanding is required for trading cryptocurrencies efficiently.
 
Limited knowledge of how cryptocurrencies like Bitcoin, Enthereum, Dogecoin, Altcoin, Litecoin, TheBillionCoin etc works have caused many to lose their hard earned money, that one could simply conclude that cryptocurrencies are meant for super smart people, or techie set of people.
 
No doubt, I’d severally fell a victim of not trading cryptocurrencies efficiently (and so are others) by losing several amounts of dollars to some crypto sites due to inexperience. 

Thereafter I’d actually come to understand the most critical factors when it comes to trading cryptocurrencies effectively, and that’s exactly what I’ll be walking you through in this post.
 
Perhaps, difference crypto coins have their similar or slightest differences for trading and exchanging coins, but then, there are few factors all cryptocurrencies have and shares in common when it comes to selling, confirming, and exchanging coin’s transaction. 
 
In this post therefore, I’ll be sharing with you some characteristic of cryptocurrencies and how to trade them effectively. 

 

Factors cryptocurrencies all shares in common

 


  • Volatility
The degree of variation by which cryptocurrencies changes prices over time is actually excitable and unpredictable. As 98% of cryptocurrencies market coins and prices are determined by market forces, there are every chances that cryptocurrencies that are not attractive to users could be deteriorating in price and values.
 
  • Convertibility
 
You can actually buy, sell and exchange one cryptocurrency for another coins through exchange platforms like Bitfinex, C-cex.com, Poloniex etc, provided they are listed in the Coin market capitalization.
 
  • Divisibility
 
You can spend or send any fraction of the coin you so desired according to it unit of account. For example, you may have $50 worth of Bitcoin and you want sell or trade only $20 worth of it. So, cryptocurrencies can be divided.
 
  • Low transaction fees
 
Low transaction fee is one most amazing features of cryptocurrencies over bank, government, and financial institutions like Credit card or Paypal.
 
  • Non reversibility of transaction 
 
Some cryptocurrenies differs in operations, you could miss your login details in some platforms and you get it back, while in some, you may not. Same apply to wallets and your coins. With the way cryptocurrencies and Blockchain operates, there is no product return and refund ability of your money after you’ve clicked on the send button, especially, when the said transaction has been confirmed. 
 
  • Unit of account 
 
95% of cryptocurrencies are Blockchain based currencies with units of account 1’s and 0’s, all represented in Blockchain technology. Every cryptocurrencies is said to have their unit of account. For example, Bitcoin – Satoshi, TheBillionCoin – Kringle, Enthereum - Ether etc.
  
  • Coin market capitalization listing
98% percent of cryptocurrencies are market based and only TBC Thebillioncoin I’m fully aware as being the Users based coin. By some acclaimed cryptocurrencies not being listed in the coin market capitalization may retard public value and perception for such a coin.
 
Even a lay man with limited knowledge of how cryptocurrencies works would not hesitate asking you “does this cryptocurrency listed in the coin market capitalization”? 
 
  • White paper
 
Bitcoin as the mother of cryptocurrencies is a crypto-based ecosystem dominated by Blockchain technology, and a fascinating development that is capturing the imagination of developers, entrepreneurs, investors, governments and consumers.
 
In established markets, new products needs developing for gaining market attention, and sometimes requires at-least Minimum Viable Product (MVP). But when the field is uncharted, and the market is undefined, innovation needs to be manufactured by multiple visionaries. So, theses visionaries write a White Paper first, (as a sort of MVP) where they describe their vision, and get feedbacks. Then, they embark on delivery a product later. That’s almost exactly what all Bitcoin and Blockchain technology companies have done, including the original creator of Bitcoin, Satoshi Nakamoto.
 
The fundamental white papers serve as the basis of roadmap, and for the innovation that’s taking place in this cryptocurrencies. Behind each one of these white papers, there is a protocol, an idea, a platform, a product, a service, and a market place. 

 

Core elements for trading cryptocurrencies effectively

 
 

When it comes to trading cryptocurrencies effectively, there are few vital core elements you need to know and be conversant with it. Bellow, there are listed as follows:
 
  • Identifying Transaction Harsh ID
 
As every Blockchain based coin’s transaction has their unique harsh ID as just a way to look up specific transaction on the Block explorer, locating ‘transaction harsh ID’ of a particular transaction can sometimes be an hindrance to beginners, and when done wrongly, could make things miserable, thus, making one looks frustrated and unable to complete important monetary coin transaction.
 
Inability to identify a specific transaction harsh ID by inputting a wrong transaction harsh ID can also cause your transaction account to be suspicious, and could leads to termination of your account, irrespective of if you’ve sent the payment (coin) already to the designated wallet address, or have fund inside the wallet account.
  
  • Knowing exact ‘coins unit’ and ‘cash value’ to send
 
As Bitcoin a unit of account (Satoshi), so is vast number of coins with unit of account – example, TheBillioncoin (Kringle). Some people may want to send let say $5 worth of Bitcoin (0.00460) to a friend or to a specific wallet address as result of transaction or for an account upgrade but don’t even know the exact figure of Bitcoins worth $5 to send. This as a result, have cause some people to sent Bitcoin above or below the $5 agreed price.
 
  • Identifying boxes for amount, figure, recipient wallet and the send button
This is another important aspect that may hinder people from trading cryptocurrencies effectively and efficiently. This is usually on the platform you created your wallet. Some people may get confused locating the exact where to input the receiver’s coin wallet, the exact unit of coins to send, equivalent amount and even the send button. 

All they do need is to visit the wallet platform and hit the ‘send’ tab and immediately, empty boxes will appear, indicating encrypted required rule like ‘wallet, figure, among of coins and the send button. 
 
  • Knowing the amount of transaction fee in a transaction
Sometime, we have a total coin value of let say $30 and we want to send (sell) the exact $30 without caring to know that we’ll have to pay for transaction fee. Without making provision for the stipulated ‘transaction fee’ on the amount of cryptocurrency you want to transact (send), you may not be able to send the coin transaction. With the way some coins or wallet platform, you may even lose the coins you’re trying to send.

 

3 method of effective cryptocurrencies trading


 
I would like to put it straight in my own way, the method of trading cryptocurrency effective which includes:
 
  • Wallet to wallet.
 
Primary method of sending, receiving and trading cryptocurrencies effectively lies within the same cryptocurreny platform. I mean something like sending Bitcoin for Bitcoin wallet, TBC for TBC wallet, Dogecoin for Dogecoin walletetc. 

This method entails buyer sending his or her wallet (of the same currency) to the seller for the seller to directly send the coin. In this method, you don’t need transaction harsh ID to verify transaction – though, the harsh ID would still be there, until otherwise.
 
  • Merchant upgrade.
What makes cryptocurrency popular is the ability of merchants accepting them as payment options. All crypto have a unique transaction harsh id (a long string of number) just a way to look up specific transaction on the Block explorer.
 
The secondary method of effective trading of cryptocurrencies is based on the type of role plays by some third party websites or merchant sites accepting cryptocurrencies as a payment option. Some of those thousands and millions of merchants sites accepting crypto coins includes Bitsplan, iCharity, Fiverr, 50centfreedom etc.
  
The usual commonest factor that distinguished the wallet to wallet and the merchant upgrade method of trading cryptocurrencies effectively revolves around upgrading your account as a registered member, where you are required to send a stipulated amount of the accepted cryptocurrency to a specified wallet address, and thereafter, required you copy the transaction harsh ID to a specified box for authentication of the transaction or the account upgrade.
  

  • Trading platform.
This is the hardest and most overwhelming method of trading cryptocurrency effectively.

The tertiary or the trading platform method involves buying cryptocurrency using other crypto-coins, selling cryptocurrency for other cryptocurrencies, and exchanging cryptcurrency with other cryptocurrency. 

This could also be the sweetest and most fun method of buying, selling and trading cryptocurrencies if you come to master the deal. 
 
There are various platforms like Bitfinex, C-cex.com, Poloniex etc offering buying, selling and trading cryptocurrencies. All you do need to do is to approach these crypto trading platforms with a positive mindset, by learning how they operate for the sake of trading cryptocurreies effectively.

I hope this article has been of help to you regarding trading cryptocurrencies effectively? 

Kindly let me know whats your take on this using the comment box bellow. Cheer...

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