How to Pick a Cryptocurrency Trading Broker
For cryptocurrency traders, online trading of these digital assets is no longer a passing fad but rather has grown into a legitimate trading and/or investment strategy. But go slowly! Traders new to the idea of cryptocurrency should take the time to get acclimated before diving in the deep end of the trading pool. As with any market, ignorance will chew you up and spit you out. AionNext, an innovative online cryptocurrency brokerage firm, would like to offer this trading guide to newbies and veterans alike.
What is Cryptocurrency?
The idea of digital cash or cryptocurrency sprang into existence back in 2009 with the creation of Bitcoin. Like good old cash, cryptocurrency is a medium of exchange similar to the United States dollar, British pound, or Japanese yen. Unlike these examples, cryptocurrency has no physical form but exists only as lines of code sitting on a server with ascribed monetary value. Yes, you can actually buy things with Bitcoin and other types of cryptocurrencies, though they haven’t approached widespread acceptance yet. A critical point to remember in this discussion is that any form of cryptocurrency is a decentralized, private endeavor and not controlled by any government, corporation, or bank.
First You Need a Broker
As with any market, your trading won’t get far without a broker. There are plenty of choose from, though it seems that longevity still counts for something. For example, AionNext has been in business for a decade, which makes it seem like an old hand in an industry that is still evolving. As you screen brokers in search of the right one for you, there are several factors to keep in mind.
Tradable Assets: If you aren’t aware, what began with a single asset, Bitcoin, has now grown into dozens of competitors. Ethereum and Dodgecoin are two popular alternatives. Unless you plan to only trade one particular cryptocurrency for some reason, look for a broker that allows trading in more than only Bitcoin – which has become rather expensive as of late, thanks to its ridiculous popularity with online traders.
Currency Background: Many new brokerage firms have sprung into existence along with the burgeoning popularity of cryptocurrency. While there is nothing inherently wrong with choosing these, you might consider the advantage of a broker with an established history in currency trading because digital currency trading and investing is a logical extension of the uber-popular currency market.
Tricked Out Platforms: There’s no way around it. Trading cryptocurrency is a high-speed game. Unless you have a fast, technologically superior platform through which to execute your trades – to be blunt – you’re probably going to lose money and blow out your account. In 2010, AionNext modified its already popular currency platform in order to offer clients the option to trade Bitcoin and has made it a point to stay on the cutting edge of trading technology ever since..
Trading Help for the Newbie: A newbie to the online trading world often feels intimidated. There’s so much to learn and you don’t even have a form grasp on the terminology yet. Look for a platform that offers big, obvious trading signals that make suggestions as to when you should open and close trades. These signals are not just random ideas. Good brokers have already incorporated Artificial Intelligence (AI) and Machine Learning (ML) robots into their platform in order to analyze the market in real-time, recognize good opportunities, and make the appropriate recommendations.
Initial Coin Offering (ICO)
Most anyone who follows the market is aware that the process of a new company entering the publicly-traded marketplace is called an Initial Public Offering (IPO). The cryptocurrency market has adopted this procedure and now qualified brokers host their own ICOs. It’s a chance to make a lot of money quickly for a trader, as the popularity of digital cash has proven a strong price-driver, especially in the early days of public trading. AionNext and other leading cryptocurrency brokers have begun offering initial coin offerings that often start at less than $1 and soar to $10, $50, or more within a few days. Obviously, this sort of ROI is not guaranteed, but if history is any judge, there’s no reason to think the pattern won’t continue into the foreseeable future.
The Bottom Line
If you’re excited about the possibilities of online cryptocurrency trading, you’re not alone. As with any form of trading, don’t be a dummy and risk money you can’t afford to lose. While you can always choose to open a managed account (where your broker trades for you), take the time to learn basic trading psychology and strategies if you plan to pull the trigger yourself. Yes, Bitcoin prices are to the moon right now, but don’t get caught up in the hysteria. Online traders who survive and prosper are those who aren’t in it for a quick score but dedicate themselves to the long haul. Good luck in your cryptocurrency trading ventures!