Trading With Bitcoin or Cryptocurrencies – The Guide

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Trading With Bitcoin or Cryptocurrencies – The Guide

Let me help you save your precious time. I’ve been actively collecting and researching the best cryptocurrency sites for the last few years. From my 9-year crypto involvement, I know that finding the most valuable crypto links (sites) can be very difficult, and It doesn’t matter if you are a day trader, miner, or just an experienced beginner, trying to start with cryptocurrencies. The best collection of crypto sites will remain 100% free-to-use and with zero ads.

The most important aspect of a profession is the tools used to carry out the work. You don’t expect a farmer to make use of his bare hands to work when there are tools. To farm, there are several tools for several functions; one too might be better the other. If an hospital does not have the necessary tools to save lives of people, then it won’t be called an hospital. The tools actually define a worker. Without the tools, it would be difficult to carry out the work. In the Crypto world, tools are also very important while trading or investing, maybe to track your trade, current market prices and so on. However, whichever category you fall in, a platform has got your back, which has gone to lengths to provide solutions to your problems. On Cryptolinks.com, you would find over 11 legally accepted sites on Cryptocurrency trading tools which have been thoroughly tested, proven highly trustworthy and recently reviewed on some criteria. Most times, people find it difficult to choose one from them because they are all great in their way, even arguments have been here and there on which one of them is best; with the short reviews provided in this category on cryptolink.com for them, makes picking the best that would satisfy your needs and keep your mind at rest very easy. This platform helps bring to your knowledge useful information on various sites on crypto trading tools. Example of some of these sites include Coinmarketcap, Etherscan.io, Simple Bitcoin Converter, BitcoinWisdom, Coinigy, CoinTracking, Coinwarz and so on.

Below are a few features collated on these sites that make them stand out and regarded as one of the best in the business.

Some of these sites stand to offer information on their trading tools and its functionality and efficiency. Such as:

Detailed report on your trades

Some these site help analyze your trades and generates real-time reports on your profit and loss, the value of your coins, realized and unrealized gains, reports for taxes and much more. With the prices for all existing digital currencies, you’ll always get the complete overview. With these reports, you can track your trades and investments. These results can be in form of interactive charts for trades, coins calculation of key indicators, Profit / loss, coin value & balance and so on. They also provide history charts on all the various coins, experimental forcast, email reports, latest fees on all coins and documentation together with a list of trades and their fees.

Some of these sites help you have a trading experience with ease and less stress. They help traders stay ahead of their trades by monitoring your accounts all day so you don’t have to. With one account, you can see all of the world’s top exchanges and also have access to any exchange, anytime, anywhere safely with 100% encryption.

Comparison and Bookmarking

On some of these sites, you can get access to useful information on how to compare your digital money with another currency such as comparing Bitcoin to gold and other precious metals by checking out the converters for Bitcoin to gold, Bitcoin to silver, Bitcoin to platinum, and so on. This site currently supports 64 currencies.
You can also get to bookmark your preferred currency e.g. Bitcoin to Euro , or Bitcoin to British Pound.

Some sites provide information on list of cryptocurrencies in comparison to Bitcoin mining in order to determine if a cryptocurrency is more profitable to mine than mining Bitcoin. The cryptocurrency profitability information displayed is based on a statistical calculation using the hash rate values entered and does not account for difficulty and exchange rate fluctuations, a pool’s efficiency, pool fees and so on. Profitability of each trader may differ.

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Some of these sites specifically deal with only one type of Cryptocurrency such Ethereum blockchain explorer, which deals with giving trading information only on Ethereum.
There are also some sites, which provide information on trading tools that support any kind of coins.

A means to learn

Some of these sites also bring to the knowledge of their viewers in case it’s their first time trading. They provide a means to through the various links to articles, videos as well as frequently asked questions just to help enlighten you. These trading tools might not be easy to navigate as there might be some hidden, so therefore information is provided on how to use the site as well the tools.

Some of these sites offer easy CSV import from over 40 exchange, automatic import via APIs together with export in excel, pdf, csv, xml & json.

Automated bots and Indicators

One thing about trading is that you can take a lot of time tracking your price values and listings but with their unique automated bot you can automate your trade strategy as well as minimize downtime by trading without losing sleep.

In conclusion, taking a quick look at all these things listed up, one can say that these sites have a lot to offer with their highly developed features and trading tools.

Easy Cryptocurrency Guide for Beginners

This crypto guide for beginner traders is the ultimate guide into the crypto world that will teach you the basics of cryptocurrency trading. Like anything in life, you don’t just invest without knowing what it is you are investing in. Just keep that in mind!

Our team at Trading Strategy Guides has already developed the best cryptocurrency trading strategy which has got a lot of attention from the trading community. There is a strong reason why the best Bitcoin Trading Strategy – 5 Easy Steps to Profit is trading number 1 on the Google page – traders like to make money using our trading advice.

The first step you need to understand is what a cryptocurrency is. If you don’t understand what Bitcoin is, or what Ethereum is or what the blockchain technology is you’ll not be able to successfully trade cryptocurrencies.

Our cryptocurrency trading guide pdf will answer all these questions and more. There is also this 2020 Cryptocurrency Guide you may be interested in.

The majority of people investing in cryptocurrency are new investors. If you’re new to the cryptocurrency sphere, or if you’re worried about how to approach it in a successful manner, keep reading. Here is more information on gold investments.

Moving forward, we’re going to discuss the basics of the cryptocurrency guide for beginners and highlight how you can build your own cryptocurrency portfolio.

This guide for beginner crypto traders will teach you everything that you need to know to get you started investing in cryptocurrency with the right tools.

Cryptocurrency Guide for Beginners

Step #1 Open an account with a Cryptocurrency Exchange

Once you have a grasp around the cryptocurrency industry, the blockchain technology, and different cryptocurrencies, then you can start building your own portfolio.

The first thing you need is access to the “marketplace,” where you can buy these cryptocurrencies.

If you’re interested in trading Bitcoin then you have a broad range of cryptocurrency exchanges from where to choose. Make sure the exchange you pick accept fiat deposit so you can buy Bitcoin directly with your fiat money (US Dollar, Euros etc.).

Secondly, you want to make sure your preferred cryptocurrency is listed on the exchange. The most popular Crypto Exchange is CoinBase. Many altcoins are only listed on specific crypto exchanges. Make sure you choose an exchange that offers the altcoin you wish to trade.

An altcoin is basically a cryptocurrency that isn’t Bitcoin like Ripple, Litecoin or Ethereum. It’s an “alternative” coin.

If you want a bunch of fancy tools with which you can buy and sell cryptocurrencies, you’ll want to use one of the exchanges that offers you a large variety of order types.

Note* An important factor when deciding your preferred cryptocurrency exchange is to research it thoughtfully and also listen to other user reviews and experience.

Now that we have a place from where we can buy cryptocurrencies, it’s time to learn how to pick those cryptocurrencies that will yield the best performance.

Best Places to Buy and Sell Cryptocurrency?

#1 Binance is the most trusted and recommended place to go for all things cryptocurrency. Binance is known for their professional team, proven products, reliable technology, and industry resources. They have a solid relationship with industry leaders and are capable or 1,400,000 orders per second. This makes them the fastest exchange in the market today. You can sign up with them in less than 5 minutes here.

Get $10 Free with Coinbase: Open a coinbase account using the link below and they will give you $10.

#2 Coinbase This by far is the most popular. Either Binance or Coinbase are a great pick if you are looking to get into buying and selling cryptos. You can sign up here if you wish!

The Top brokers that we recommend if you trade cryptocurrency:

1. TradersWay – These guys offer great support and will assist you with any questions you may have about your account! They do an excellent job helping their traders by assisting them with via emails that will give you useful information on the market’s validity. You can learn more about this broker here (USA Traders).

2. Coinbase – #1 place to buy and sell cryptocurrency!

3. Binance – Another popular place to buy and sell cryptocurrency.

Both of the brokers above support bitcoin trading at this time. They are trusted and have a rock-solid reputation in the trading community. We only recommend people that we trust. Both Fxopen and Fxchoice will welcome you with open arms! Also, read Everything you need to know about brokers.

Step #2 Select your coins you want to invest for the long-term

This cryptocurrency guide for beginners is more focused on long-term investing in crypto coins. You can invest in multiple cryptocurrencies but our team at TGS recommends to first start trading one coin.

We’re going to show you all the basic steps to make sure you purchase the right cryptocurrency.

There are thousands of cryptocurrencies available to trade on exchanges across the globe so there is a big variety to choose from.

By using CoinMarketCap a free cryptocurrency resource website you can find all the different types of coins and what their market capitalization is and how much money those currencies are worth.

The guide to cryptocurrency trading will give you a premier selection of the best cryptocurrencies.

There are a few different things you want to keep in mind when selecting a cryptocurrency and the market valuation is probably an important factor.

We can say there are three main valuation types that define cryptocurrencies:

  1. Large-cap (top 5 coins).
  2. Mid-cap – anything bigger than $200M.
  3. Small-cap anything smaller than $200M.

Don’t make the mistake and buy cryptocurrencies just because they are cheap and trading at 1 cent. It’s highly unlikely that a 1 cent coin will go up to $200. This is because the actual dollar value per coin doesn’t matter in the grand scheme. It’s the market valuation that counts.

The market valuation is calculated by the number of coins or tokens multiplied by its current price.

Note* We recommend only investing in large and mid-cap cryptocurrencies.

Step #3 What price is your preferred cryptocurrency trading at? Check through multiple cryptocurrency exchanges.

Another thing you need to consider when trading cryptocurrencies is the price of your preferred coin.

Where’s the price of your cryptocurrency?

Is it cheap? Is it at an all-time new high? Or maybe at new lows?

As we already mentioned, you should never buy cryptocurrency solely based on their price. Instead analyze other factors such as valuation, available coin supply, what technology it uses and the target market.

If you want to maximize your cryptocurrency gains, you’ll also have to apply the “buy low, sell high” principle. This basic principle is part of any successful cryptocurrency trading strategy. You need a guide to cryptocurrency investing that can teach you how to trade bitcoins for profit, the right way.

Our team at Trading Strategy Guides has developed lots of universal trading strategies that can be applied to any market. We recommend starting with our Step by step guide into price action.

Step #4 Why are you optimistic about your cryptocurrency choice?

Why you are optimistic about your cryptocurrency choice is a fundamental question that you need to answer if you want to catch the next Bitcoin.

We have put together four major categories that you should keep an eye on when trading cryptocurrencies:

  1. What market or industry is the coin disrupting (virtual payments, cloud storage, finance, etc.)?
  2. What is the technology behind the coin? Make sure it’s easy to use, accessible and the fact that the blockchain technology is actually addressing an issue.
  3. Solid team. Do your research and make sure the team behind your favorite cryptocurrency has experience is big enough and has the necessary skills to implement the claims these coins are stating they are going to make.
  4. This is probably the most extreme and important factor because this will increase the demand for the cryptocurrency and it means people are using the blockchain technology.

You should not invest in any cryptocurrency that doesn’t meet at least three of these four categories.

Don’t be caught in the fear of missing out the next big opportunity in the crypto space. In the crypto community and cryptocurrency lingo, this has been coined as the FOMO trade.

Don’t do the FOMO trade.

Do your research and only invest in the best cryptocurrencies.

Step #5 Store your Bitcoin and Altcoins using a cryptocurrency wallet.

A cryptocurrency wallet is like your bank account for your crypto coins. Your bitcoins need to be stored in a bitcoin wallet the same way your Ethereum coins need to be kept in an Ethereum wallet, and so on and so forth.

In other words, a Bitcoin wallet is a piece of software that you use to communicate with the bitcoin network. You can tell the blockchain when you want to send or receive transactions.

There are multiple ways to store your cryptocurrencies both online and offline. You can even store your bitcoins on the exchanges from where you bought them which is not recommended because there is a high risk of hacking that can result in you losing your cryptocurrencies.

Cryptocurrencies can be stored both online and offline on a paper wallet or you can do it on a hardware wallet.

The best alternative to safely store your cryptocurrencies is to use a harder wallet or a paper wallet.

Conclusion – Crypto Guide for Beginner traders

This cryptocurrency guide for beginners is intended to be just a template into the crypto investment world.

Cryptocurrencies have the highest potential way to make money investing today. Don’t make the mistake of missing out this one in a lifetime opportunity. Our crypto guide for beginner traders has all the right tools to help you make the right decisions when it comes to investing in cryptos.

If you want to invest in cryptocurrencies you need to follow a process and have a cryptocurrency trading strategy. We hope that this cryptocurrency guide for beginner traders will put you on the right track.

Thank you for reading!

Please leave a comment below if you have any questions about this Cryptocurrency Guide!

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Bitcoin and Crypto Margin Trading Exchanges (UPDATED 2020)

Last Updated Jan 6, 2020 @ 12:57

What if you could leverage your long and short positions on Bitcoin by 2X, 10X or even 100X, without having actually to hold the capital required to open such positions?

Welcome to our margin trading guide. In this guide, you will learn what margin trading in Bitcoin and crypto is, how does it work, what exchanges allow margin trading, and more.

Quick Navigation:

What is Bitcoin Margin Trading?

Bitcoin margin trading, in simple words, allows opening a trading position with leverage, by borrowing funds from the exchange.

For example, if we opened a Bitcoin margin position with a 2X leverage and Bitcoin had increased by 10%, then our position would have yielded 20% because of the 2X leverage. With no leverage, it would have been only a 10% ROI.

Margin leverage can also be 25X and even higher, despite the risk, the same position as described above would have yielded 250% (instead of 10% with no leverage).

How does Bitcoin margin trading work?

In most cases, the exchange provides loans to the traders so they can enlarge their capital to be used for margin trading. This way, traders can open positions with high leverage. The exchange doesn’t have many risks since every position has its liquidation price, which is based on the level of leverage.

Bitcoin Margin Trading Exchanges & CFDs

Max Margin: 125x | Type: Perpetuals | Deposit Method: Crypto | Fees: 0.04% (taker) + funding fee

Max Margin: 100x | Type: Futures & Perpetuals | Deposit Method: Crypto | Fees: 0.075% (taker) + funding fee

Max Margin: 100x | Type: Perpetuals | Deposit Method: Crypto | Fees: 0.075% (taker) + funding fee

Max Margin: 100x | Type: Perpetuals + Futures | Deposit Method: Crypto | Fees: 0.060% (taker) + settlement fee

Max Margin: 100x | Type: Futures + Perpetuals | Deposit Method: Crypto | Fees: 0.075% (Taker) + Funding fee

Max Margin: 100x | Type: Futures & Perpetuals | Deposit Method: Crypto | Fees: 0.05% + financing fee

Max Margin: 30x | Type: CFDs | Deposit Method: FIAT | Fees: 0.75% | Regulated Brokerage | Disclaimer: 75% of retail CFD accounts lose money

Max Margin: 100x | Type: Futures + Perpetuals | Deposit Method: Crypto | Fees: 0.075% (Taker) + Funding fee

Max Margin: 2.5x | Type: Derivatives | Deposit Method: FIAT & Crypto | Fees: 0.15-0.25% + loan interest

Max Margin: 30x | Type: CFDs | Deposit Method: FIAT | Fees: Overnight Funding, Inactivity Fee | Regulated Brokerage | Disclaimer: 76.4% of retail CFD accounts lose money

Max Margin: 20x | Type: Derivatives | Deposit Method: FIAT & Crypto | Fees: 0.2%

Max Margin: 3.3x | Type: Derivatives | Deposit Method: FIAT & Crypto | Fees: 15% (of funding contracts)

Max Margin: 5x, 50x (futures) | Type: Derivatives & Futures| Deposit Method: FIAT & Crypto | Fees: 0.01-0.02% + 4-hr fee

Max Margin: 100x | Type: Perpetuals | Deposit Method: Crypto | Fees: 0.075% (taker) + funding fee

How to Short Bitcoin and Other Cryptocurrencies

Want to make gains while Bitcoin price is decreasing? It’s possible. A short position on Bitcoin basically means that we believe in a coming-up drop in the price of Bitcoin. Technically, short positions work by selling the base asset first, in this case, Bitcoin, and then later buying it. You don’t have to worry; the exchanges do this process automatically for us.

The second role for shorting Bitcoin is the option to hedge a cryptocurrency portfolio. For example, if the crypto portfolio consists of 5 Bitcoin and we want to hedge against the risk of a possible Bitcoin’s decline, a 10X leveraged short position could be opened, and it would be equivalent to 40% of that Bitcoin portfolio.

To open the position, the amount required is only a tenth of it (10 times leverage). That means that we need to hold only 0.2 Bitcoin on the margin exchange in order to hedge 40% of a portfolio valued 5 Bitcoins. Another advantage is the fact that only a small amount is stored on the exchange itself. As you might notice, from security reasons, it’s better to store the least amount possible on crypto exchanges.

Bitcoin Margin Trading Tips

Since margin trading is risky, hence, it’s not recommended for beginners in crypto trading, we had gathered some must-read trading tips:

Always start trading with small amounts: First-day margin trading? then always start small. Get the necessary confidence you need before jumping into the deep raging water of the leveraged trading.

Don’t go all-in at once: Unless you’re sure about your trading skills, it’s better to divide your position into portions, and create a ladder of prices. This way, you can reduce the risk while averaging down the entry price of the position. The same is true for taking profit. You can set-up a ladder of take-profit levels.

Understand fees and liquidations: Always know how much you are paying for fees and what type of fees you are paying. Trading on margin carries ongoing fees, make sure they don’t eat up your profit. The same is true for the liquidation price; you should know that number in case the position is reaching there.

Risk Management: When trading on margin, set clear rules of risk management, beware of excessive greed. Take into account the amount you are willing to risk, keeping in mind that it can be lost entirely. Set levels for closing positions, taking profit levels, and the most important – set up stop-loss levels.

Price manipulations and short/long squeeze: In an unregulated market like Bitcoin, it’s not rare to see occasional short and long squeezes. When the number of short or long positions is high, it means that a market mover can make easy money when creating an opposing price move, forcing those positions to liquidate (and push the price even more in that direction). The following image describes a classic event of a long squeeze followed by a short squeeze. a classic manipulation of the Bitcoin price.

A short squeeze: The green candle marked is the forced closure of short positions before going down

Short-term trading: Cryptocurrencies are considered to be very volatile assets. Margin trading of cryptocurrencies doubles the risk, and even more. Therefore, try to make short-term trading leveraged positions. Moreover, although the daily fees or margin position is negligible, in the long term, the fees can amount to a significant sum.

Pay attention to fundamentals: Major events surrounding the crypto space, like Bitcoin ETF decisions, SEC regulations and so on, can have a significant effect on the price of Bitcoin. Even though many traders rely only on technical analysis, keep in mind that those events might have a critical impact on the crypto market.

Extreme volatility – don’t leave the screen: Crypto trading sometimes has extreme fluctuations that occur in both directions, creating candle wicks. The risk, in this case, is that the deep will touch our liquidation value. It could happen where the leverage is relatively high, so the liquidation value is relatively close.

In fact, you can take advantage of these deeps and try to set closing target positions, hoping the deep will run over them, leaving you with a decent profit and then going back to the previous price.

Costs and Risks of Margin Trading

As mentioned above, the cost of the margin position includes paying the ongoing interest for the borrowed coins, and fees for opening a position with the exchange. As the chance to earn more increases, so does the risk of losing more.

The maximum we can lose is the amount we invested in opening the position. This level is called the liquidation price. The liquidation price is the price where the exchange automatically closes our position, so we don’t lose any of the money we were loaned and only lose our own money.

Example: if we are talking about standard trading, leverage 1:1, the liquidation price is when the position reaches a value of zero. As the leverage increases, the liquidation value will get closer to our buying price. For example, If the Bitcoin value is $1,000, and we bought one Bitcoin (long) with leverage of 2:1. The cost of our position is $1,000. Besides, we have also borrowed a further $1,000.

The liquidation price of our position will be a little over 500 USD – because, at that level, we lose exactly our initial $1,000, plus interest and fees. Margin trading can also be against the market, so we can also have a short position with leverage.

High leverage risk: The higher the leverage, the closer the liquidation price is. The rule here is dividing 100 by the leverage level will grant you the percentage until you reach the liquidation price. Example: a positive with 1:25 leverage needs only a 4% move (100 divided by 25) to get liquidated. 4% can be achieved quickly in the volatile crypto markets.

It is now possible to trade margin on most exchanges. The advantages of leveraged trading are very clear, and another significant benefit comes from the security aspect. Crypto traders should strive to minimize the number of coins they hold on exchanges. Exchanges are considered hot targets for hackers, and in recent years there have been several hackings of exchanges, including hacks of the major exchanges too.

Trading on margin allows us to open leveraged positions with no need to provide the Bitcoin required; that way, we can hold fewer coins on the exchange account.

Editors’ Pick

BitMEX – Established in 2020, BitMEX has gained its reputation as the leading exchange in the field of margin trading of Bitcoin by means of the trading volume. All the recent years’ Bitcoin moves had started on BitMEX. The exchange offers up to 100X leverage for long and short positions. With our link, you can receive a 10% discount for the first six months on the trading fees upon registration. Click here for the BitMEX trading video tutorial.

Further Reading – Margin Trading

Additional tips for trading Bitcoin and Altcoins – can be read here and here.

Want to read more useful tips? Follow our 12 must-read crypto margin trading tips.

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