Cryptocurrency is likely a term you’ve heard, as it has been an exciting and hot topic in recent years while it continues to grow in popularity across the globe. You may have questions about where and how to learn cryptocurrency trading.
Today's guide to cryptocurrency trading will work to answer these questions and help you start your crypto trading journey with Olymp Trade 😎
Contents:
- What Exactly Is Cryptocurrency?
- How Does Cryptocurrency Work?
- How Olymp Trade Provides an Advantage to Its Traders
- Why Should I Enter the Crypto Market?
- What Underlying Crypto Assets Are Available to Me?
- Start Trading Crypto Today
What Exactly Is Cryptocurrency?
A cryptocurrency doesn't function like the tangible currencies it gets its namesake from. Instead, it is a digitized asset that can be exchanged without the governing authorities such as a bank or government. Each individual asset of any particular cryptocurrency is referred to as a coin, or sometimes a token.
Cryptocurrencies vary in their primary use. For instance, Bitcoin is generally used as an asset traded on the markets, much like a commodity such as gold. At the same time, its compatriot Litecoin was created as a means to act as an alternative for cash purchases of goods and services.
Understanding the intended purpose of the cryptocurrency you find interesting is a crucial component to starting the process of fundamental analysis.
How Does Cryptocurrency Work?
Cryptocurrency is much more than just a digital currency that traders keep in demand. The technology behind the development of these coins and tokens called Blockchain is quite revolutionary. Blockchain technology implements smart contracts that solidify every transaction and exchange with permanence. This protects the trader from manipulation or duplication of their assets allowing their decentralized nature to stay intact.
In addition, some of these currencies, such as Ethereum have transaction history and individual token metadata available for public verification, allowing for even more digital transactions like the swapping of NFTs. While this functionality is versatile, it has its inherent risks, most prominently the requirement of converting your investment directly into the coins and tokens, opening yourself up to higher risks of volatility.
How Olymp Trade Provides an Advantage to Its Traders
While there is the potential for connecting a digital wallet for funding your account through the Olymp Trade platform, the most significant advantages Olymp Trade offers are much more straightforward.
Olymp Trade offers the ability to invest in crypto without directly purchasing any coins or tokens, similar to the ability to trade on stocks and commodities as an underlying asset.
When purchasing a form of cryptocurrency, you have limited yourself by tying your investment solely to the growth of your asset. Olymp Trade gives you the opportunity to apply fundamental analysis across all markets, helping you navigate the volatility of each token more freely.
Furthermore, an Index of some of the most popular cryptocurrencies is compiled for you to trade on and expand your overall understanding of the total market.
Why Should I Enter the Crypto Market?
Aside from the exciting and growing production of coins and tokens, these assets offer a few great perks to the potential investor. Accessibility to the market is perhaps the most impactful. Cryptocurrency is not regulated through the global market hubs, meaning the trade and exchange of these assets march through each day, weekend, and holiday.
The vast majority of traders work a traditional work regimen. Starting to invest in the crypto market will give you one less component to manage throughout the process of building your investment routine.
What Underlying Crypto Assets Are Available to Me?
Bitcoin, Litecoin, and Ethereum are popular assets available on Olymp Trade’s platform, but more is offered in the form of the Basic Altcoin Index. Below we will break down each of these assets that you can begin trading.
Cryptocurrencies
BitcoinPerhaps the most well-known cryptocurrency, this asset is widely considered the ceiling for the entire crypto market, as it maintains the largest market capitalization of all coins and tokens. Bitcoin’s crown of establishment has minted the universal term of “Altcoin” for any cryptocurrency other than itself.
LitecoinA coin that resides in the Bitcoin “family” but functions primarily to serve as a peer-to-peer payment system and give people a cash alternative for goods and services.
EthereumSecond only to Bitcoin in market capitalization, Ethereum balances its value not only on trades and exchanges but also on its favorable blockchain technology platform that enables many third-party operations.
Indices
Basic Altcoin IndexA quote of over 70 alternative cryptocurrencies (Altcoins) in comparison to the market price of Bitcoin. This index is a tradable asset but also doubles as a strong tool to help forecast the overall crypto market.
Start Trading Crypto Today
If you liked this guide to cryptocurrency trading and find the prospect of entering this market enticing and exciting, then join us at Olymp Trade and begin learning the more intricate and advanced components of the market.
We make beginning easy with low investment entry requirements and provide an extensive library of underlying assets in the crypto market, each with extensive learning material attached. If you haven’t already, open a free demo account and begin trading with real-time feedback from the live markets.
Learn your skillset quickly, accurately, and in an environment that allows you to explore and take chances without the risk of capital loss before you have mastered your strategy!
Trade Crypto NowRisk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.
