Understanding the Basics of Cryptocurrency Trading 

Understanding the Basics of Cryptocurrency Trading

Cryptocurrency trading is the act of speculating on cryptocurrency price fluctuations through a CFD trading account or buying and selling the underlying assets through an exchange.

1.Cryptocurrency CFD trading

CFD trading allows you to speculate on cryptocurrency price changes without owning the underlying currencies. If you believe a cryptocurrency’s value will climb, you can go long (‘buy’) or short (‘sell’).

Both are leveraged products, which means you only need to put up a little deposit – known as margin – to receive full exposure to the underlying market. Because your profit or loss is still determined based on the total size of your investment, leverage magnifies both earnings and losses.

Since cryptocurrency’s creation, an increasing number of financial institutions have become involved in cryptocurrency trading. As a result, it is critical to summarize previous research articles and outcomes on cryptocurrency trading. This paper covers 118 research papers on various aspects of cryptocurrency trading (e.g., cryptocurrency trading systems, bubble and extreme conditions, prediction of volatility and return, crypto-assets portfolio construction and crypto-assets, technical trading, and others). This article also examines datasets, research trends, and the distribution of research objects (content/properties) and technology before closing with exciting opportunities in bitcoin trading.

Crypto Intelligence Portal is the most comprehensive educational resource and information base created by traders for traders, covering the most recent market news, and original content created by prominent crypto experts aimed at teaching the community, sharing trading ideas, and discussing the most recent market movements.

2. Cryptocurrency Issues 

The issues that digital asset traders must deal with are similarly difficult. Launching a personal fund necessitates technical knowledge, programming abilities, legal documentation, as well as marketing charges and other expenses.

Only a few digital asset funds have developed the requisite reputation for backing, but private crypto traders and freshly founded funds typically seek investors in online forums, social networks, or among their friends. Building trust and reputation takes many years of work in order to get appropriate funding. As a result, many successful traders and digital asset traders are missed and end up without access to investor funds, restricting their chances and profit potential.

Since its start, the traditional asset management industry has been beset by numerous difficulties, including scams and corruption. Some of the most prominent complaints leveled against the business include unethical and illegal manipulations by asset managers with vast sums of money at their disposal, Ponzi schemes, and sweeping methods. The sector has created deep-seated issues such as mutual mistrust, unethical tactics, fraud, and under-the-surface agreements.

Trusting even experienced asset managers in traditional markets can result in disastrous outcomes. When it comes to investing other people’s money, stories of asset managers executing particular trades only to maximize their commission and push up the fees to their customers are just the beginning. Thousands of licensed traders are found guilty each year of insider trading, fraud, or defrauding hardworking investors.

3. How to Protect yourself from Cryptocurrency scams

  1. Education and Public Awareness:

          Understand how cryptocurrencies function, as well as the fundamentals of blockchain technology and various sorts of scams.

  1. Use Trustworthy Exchanges and Wallets:

         Use well-known and trustworthy exchanges and wallets. Before utilizing any new platform, conduct research and read evaluations.

  1. Turn on Two-Factor Authentication (2FA):

        Always enable 2FA for your exchange and wallet accounts. This gives an extra layer of protection.

  1. Avoid Phishing Scams:

        Be wary of unsolicited emails, messages, or links requesting your private keys, login information, or 

        personal information. Before submitting any information, always confirm the source.

  1. Protect Your Private Keys:

       Do not give anyone your private keys. Keep them in a secure location, ideally offline, like a hardware  


  1. Avoid Unverified or Doubtful Projects:

      Be cautious of new or unknown projects that promise large returns or employ aggressive marketing 

      strategies. Conduct extensive research and stick to well-established projects.

  1. Check URLs twice:

       Check that you are on the correct website of an exchange or wallet. Scammers frequently develop 

       bogus websites that look identical to authentic ones.

  1. Avoid Ponzi schemes and high-yield investments:

      Avoid schemes that guarantee or promise extremely high returns. If something appears to be too good 

      to be true, it most likely is.

  1. Keep up with the latest news and updates:

      Follow credible news sources to stay up to date on the newest scams and security issues in the bitcoin 


  1. Use Strong, Individual Passwords:

      Make your passwords difficult and avoid using the same password for several accounts. To develop and save secure passwords, consider utilizing a password manager. 

  1. Use Social Media With Caution:

     On social media networks, avoid clicking on links or disclosing personal information. Scammers 

     frequently imitate influencers or projects in order to deceive users.

  1. Check all transactions twice:

     Review the specifics of any Bitcoin transaction before confirming it. Many transactions cannot be 

     reversed once they have been confirmed.

  1. Suspicious Activity Should Be Reported:

    If you come across a strange website or communication, report it to the appropriate authorities or 


  1. Think About Using a Hardware Wallet:

     Consider employing a hardware wallet for long-term storage of large quantities of cryptocurrency. 

     When opposed to online wallets, these are less vulnerable to hacking.

  1. Trust Your Gut Feelings:

     If something feels strange or too good to be true, it most likely is. Proceed with caution and trust your intuition.

5. Conclusion

Many currencies lose value as a result of inflation. Many people believe that cryptocurrencies can protect against inflation. The total amount of Bitcoin coins that will ever be produced has a hard cap. For instance, the price of Bitcoin will rise when the money supply grows faster than the supply of Bitcoin does. The same approach is used by several different cryptocurrencies to control supply and prevent inflation. Only 21 million Bitcoins have been released in total, according to the ASCII computer file. Therefore, as a result of a gain in demand, the value will increase, which may allow it to eventually maintain pace with the market and avoid inflation.

Unless they have access to your crypto wallet’s private key, nobody can access your money. You cannot get your money back if you lose or forget your key. Additionally, the blockchain technology and the dispersed network of computers that verify the transactions both work to secure the transactions. Keeping cryptocurrency in one’s own wallet increases security for investors. The use of public and private keys, proof of labor or proof of stake, and other various incentive systems secure the transactions.

You May Also Like

About the Author: Technicalm