Best Cryptocurrencies Trading Platforms & Cryptocurrency Trading Guide

What exactly is a cryptocurrency and why should you know about it? Cryptocurrency is virtual currency that is completely electronic and has no central authority that will authorize a transaction. This means that it is completely peer-to-peer based so only you and the person you are sending it to are involved in the transaction. It got its name because of the fact that it uses cryptography to make the transactions happen. When you use cryptocurrencies and send them to another person, anywhere in the world, it is impossible for anyone or anything to stop that transaction or to reverse it.

How do you learn about and profit from trading cryptocurrencies? This article will explain everything you need to know about cryptocurrencies and cryptocurrency trading!

The most popular cryptocurrency in the world is definitely Bitcoin, as it was the first digital currency ever made and we can confidently say that it was a start of a global revolution in the world of financial transactions, but also everyday lives of people around the world. This is an important piece of information because it was a historical turning point that has completely changed the way in which the world is perceiving the exchange of currencies, and financial trading in general.

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There is plenty of confusing and unhelpful information circling around when it comes to cryptocurrencies. It is not uncommon even for those who are actively reading them or using them in their everyday lives to be somewhat confused as to what these new digital currencies are about and how they are evolving and changing. This is especially true for those who do not have extensive experience in this area and find themselves being intimidated by the sheer volume of the different info available.

The main reason why cryptocurrencies were invented was to upload already existing software. They operate based on financial transactions that are being executed all the time – with every transaction, a little part of Bitcoin is built (or mined). Considering the fact that Bitcoins and other cryptocurrencies are dependent on online traffic and constant data stream, it is only logical to expect that there is so much more we can expect to see with the development of cryptocurrencies. One example being that, currently, Bitcoins are able to process 3 to 4 transactions per second while Paypal can process 193 transactions. However, Ethereum is up to 20 transactions per second which clearly demonstrates the cryptocurrency’s potential for progression.

How to trade cryptocurrencies

Cryptocurrencies are traded on the exchanges that deal specifically in cryptocurrencies. Those exchanges are typically platforms, and you can also buy and sell your Bitcoin or other cryptocurrencies there. Obviously, like with any other exchange out there, you want to look for those which offer high security and transparency when it comes to processing trades.

Types of cryptocurrency exchanges

There are a few differences between various types of selling and buying cryptocurrencies

  • Trading platforms: these are basically online web platforms, or websites that act as a mediator that connects those who want to sell and those who want to buy. They typically charge a small fee for their service.
  • Direct trading: platforms that offer direct trading where individuals can directly exchange their currencies without any middlemen. The important thing about this type of exchange is that there is no fixed market price but rather the person selling creates their own rate of exchange.
  • Brokers: brokers are the ones who set the price for the cryptocurrencies being exchanged between sellers and buyers in this case. This type of exchange is very similar to ‘real’ currency exchange brokers.

bitcoin tradingDo Your Homework on Cryptocurrencies!

Before you jump on the exchange bandwagon, there are definitely a few things you need to be aware of. As with anything, education and information are key so we’re giving you a few main questions you need to ask yourself before embarking on this journey.

Have you found a reputable cryptocurrency trading platform?

The most straightforward way for you to figure this out is simply by reading a lot of detailed reviews. Also make sure to inform yourself among friends who have maybe used the same exchange or a broker and get their feedback. You do not want to be stuck with a scam broker and lose your investments just because you didn’t take the time to familiarize yourself with the process.

What are the costs and fees involved in trading cryptocurrencies?

This is an essential element of trading transparently as you need to know in advance what type of charges and expenses can you expect in the process of buying and selling cryptocurrencies online. Different platforms and brokers have different prices, deposits, and other fees involved.

How secure are cryptocurrency trading sites?

Making sure the platform you are using is employing adequate security protocols in order to make sure your account and your fund are impenetrable to a third party, is of the utmost importance. Typically, exchanges and trading sites use a two-factor authentication, but going beyond that is definitely a big plus. This includes advanced encryption, ledgers that are not hackable and other measures that secure your digital currency. Familiarize yourself with the verification process the broker or a platform of your choice is using. The higher the protection the least amount of worry you will have regarding the security of your hard earned funds.

How To Cryptocurrencies Online – 3 Step Guide

Since we are all slowly figuring out that cryptocurreencies are basically the future of money globally, and that they arenb’t going anywhere anytime soon, it is only natural to want to find out more about how to actually use and posibly profit from buying and selling cryptocurrencies. We bring you an easy, basic, 3 step guide on how to trade cryptocurrencies online:

  1. Pick your cryptocurrency

This is the most basic step all traders should begin with. You can’t hope to maximize your profit potential in trading cryptocurrencies if you do not know which currencies you can choose from, and what are the differences and similiarities among them. There are so many cryptocurrencies nowadays, and we completely understand that it can be very hard to distinguised between them. However, it is neccesary for all traders, regardless of their experience levels, to be educated and able to choose the cryptocurrency they want to buy and/or sell and to understand why exactly are they choosing exactly that one(s). For short descriptions on all existing cryptocurrencies to this day, we have a compiled a very practical list at the end of this article to help you with your very first important step on your journey to trading cryptocurrencies.

      2. Open an account with a cryptocurrency broker

Clearly, this is the most important step you are going to take, as it will define what your goals will be. Any and every traders that wants to make sure that their trading strategy will have a chance of prospering, need to make sure they choose an adequate broker for their needs. Not every broker is going to be good for every type of trader, but also not every broker is actually worth opening an account with. Brokers such as Iqoption, Ayerx, 24option and  Avatrade are a great choice for various types of cryptocurrency traders. Wether you are just starting out or you have certain experience under your belt, a dependable broker is something that is not easy to find andas there are so many scam brokers out there.

      3. Deposit to your account and trade!

After you have chosen your prefered cryptocurrencies and your broker, the next step is to fund your account. Obviously, you cannot buy or sell any cryptocurrencies until you have sfficient funds in your account to actually do so. MOst brokers have a very streamlined proces of both opening and funding your account. If you notice that things are too complicated with regards to opening and account and depositing funds, you might want to reconsider your choice of broker. Choose the depositing method that is best for your current situation and make sure you have read the Terms and Conditions of your chosen brokers so that you don’t run into any unexpected charges or fees during this process. Most depositing methods are very easy to use and your funds should be visible on your account very shortly after the process is complete.

Where to trade Cryptocurrencies online?

As you can probably imagine, just like with anything else today, venues for industries that are involved with anything remotely financial are not going to take long to multiply and offer clients places they need in order to participate. With that in mind, it comes as no surprise that there is a multitude of platforms available for cryptocurrencies today, but one needs to keep in mind that not all are equally good.

Of course, you can trade cryptocurrencies in easier way, without actually owning them. It is possible to trade them as contracts on forex excahnge or as an binary options asset. This way, trader never has to own the asset to trade it, as they place the trade based on the predicted price movement (binary options), or buy and sell depending on market movement (forex). Such approach greatly simplifies access to the cryptocurrencies trading and makes it more approachable to traders all over the world. With IQoption, you can try cryptocurrencies trading for only $10 deposit and see why so many traders prefer it over other types of trading!

iqoption crypto currencies image

Hello platform

Hello Group has oriented towards offering full package product that are focused on cryptocurrencies. Specifically, this great platform is hosting forex, binary options brokers, but also cryptocurrency platforms where they offer a total of eleven cryptocurrencies. Namely, Hallo group offers: Bitcoin (BTC), Ethereum (ETH), Dash (DASH), Bitshares (BTS), Stratis (STRAT), Ripple (XRP), Litecoin (LTC), Ethereum Classic (ETC), NEM (XEM), Potcoin (POT) and Monero (XMR).

Bitsquare

bitsquare

Bitsquare is a classical peer to peer type of currency exchange. This type of exchange, according to them, is decentralized which means that there is no one central financial authority that has control over the exchange but that rather the buyer and sellers are the ones in charge. Also, Bitsquare very accessible to anyone who wants to trade in cryptocurrencies, or simply buy and sell them. There is also no need to register in order to use this exchange.

Coinbase

Coinbase is one of the already well-established brokers on the global market. They are very proud to be able to provide a well rounded service to clients who decide to use Coinbase for their cryptocurrency adventures. According to them, traders can now get a hold of Bitcoins, Ether and Litecoin from them via an e-wallet that can be used with both iPhone and Android.

Krakenkrakren bitcoin trading

Since it’s beginnings, Kraken has profiled into the largest Bitcoin exchange along with the fact that it has been a constant partner in the very first cryptocurrency bank since the very opening of the bank itself. On the Kraken exchange you can sell and buy cryptocurrencies, specifically Bitcoins, Ethereum, Augur REP tokens, Monero, Ethereum Classic, Stellar/Lumens, Zcash, Litecoin, Dogecoin, Ripple and ICONOMI.

LocalBitcoin

This particular currency exchange is a peer-to-peer exchange for Bitcoin users and has its clients in a multitude of places around the entire world. The great thing about this specific platform is that you are actually enabled to meet up with people you want to do transactions with in person, or you can send the finances electronically through Skrill, Paypal or Dwolla. Obviously, you can also do a bank transaction if that is your preference.

SpotOption

SpotOption platform has recently added cryptocurrencies to their newest Spot5 trading platform. As one of the most successful platforms they need to keep up with the demand of the market and with cryptocurrency market being as volatile as it is, the digital currencies are very attractive. They have integrated over 30 cryptocurrencies, namely Ethereum, Bitcoin, Litecoin,  Ripple, Dash, and plenty more.

Brokers That Offer Cryptocurrency Trading

Considering that we at Fairbinaryoptions.com have the main goal of educating and helping our readers find the best possible information relevant to online financial trading, binary options, forex, and cryptocurrencies, we have also made sure to bring you a list of brokers that offer cryptocurrency trading. Here are some of them:

IQoption

IQ Option has always been focused on offering something different to their traders. Along with Forex, ETFs, and Stocks, IQ option now offers Cryptocurrency trading as well – exactly 12 different cryptocurrencies to choose from. Namely: Bitcoin, Ethereum, Ripple, Bitcoin Cash, LiteCoin, IOTA, Dash, Ethereum Classic, Monero, OmiseGo, Zcash, and Santiment.

AvaTrade

According to their website, AvaTrade is now offering a large selection of cryptocurrencies, as it is a very real possibility that digital currencies will very soon become as conventional and common as any other type of currency in existence today. AvaTrade offer trading of the following cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Dash, and Litecoin.

Markets.com

Markets.com aims to provide an enhanced CFDs trading experience, as it is stated on their website. With this in mind, Market.com broker is also now offering cryptocurrency trading to all interested traders who are looking to take part in this volatile market. This particular broker is offering Bitcoin, Litecoin, Dash, Ethereum, Ethereum Classic, Ripple and Bitcoin Cash.

24option

24 Option offers their clients retail trading on one of the most popular and prolific trading platforms on the global markets – MetaTrader4. This same platform enables traders to also dive into cryptocurrency trading as it can provide various trading possibilities depending on your preferences. Except for binary options trading and fiat currencies for forex trading, 2option offers the following cryptocurrencies:  Bitcoin, Ethereum, Dash, and Litecoin.

Ayrex

Ayrex is a relatively new broker on the market, but it has certainly made an impact on the global trading community. One of the main strategies of this interesting broker is to provide their clients with a great and transparent service and a chance to maxiize their profit potential. In addition to binary options and forex trading , Ayrex has also implemented Bitcoin exchange.

How to store Cryptocurrencies?

When we deal with ‘real’ or fiat currencies, it is pretty obvious and easy when you decide how to safe-keep your funds – you can choose your back pocket, your physical wallet, a piggy bank or a bank. There’s not much to it.

However, with digital, or cryptocurrencies, things get a bit more complicated. Everyone who owns cryptocurrencies needs to store them in an e-wallet. What this means is that you have a custom address where your cryptocurrencies are located.

storing bitcoinsEvery time you open an e-wallet, you will have two addresses applicable to each wallet. One address is the one that people use to send you money, and with the other one, you simply access your funds. So the first one is public and the other one is just known to you and no-one else. Make sure to keep your address to yourself and do not allow a third party access to it if you don’t want to lose your funds.

What are the best Cryptocurrency E-wallets?

You can choose between several types of e-wallets that you can use to store your cryptocurrencies.

  • Desktop e-wallets – are supposed to be downloaded to your device and you can only access them from the computer you have chosen to download it to. They may seem a bit impractical but they do offer the highest level of security.
  • Online e-wallets – these e-wallets can be accessed from any device you wish which makes them a lot more practical than the desktop e-wallets. However, these are under control of a thrid party which makes them susceptible to hacking attacks.
  • Mobile e-wallets – as the name suggests, these e-wallets are used to access your cryptocurrencies from your phone or any other mobile device. They are the most convenient but also have the least amount of storage.
  • Hardware e-wallets – the main thing that separates these e-wallets from virtual ones is that the key needed to access your cryptocurrencies is stored on a device such as a USB. This makes your funds available anywhere you are as they are transportable but also provides high levels of security.
  • Paper wallet – this refers so an actual printout of your key, which is then updated every time you add or take out funds. You can also transfer funds form your virtual wallet to your paper wallet and vice versa.

How to Exchange Bitcoins?

Bitcoins, due to their popularity, are also a very common choice for traders who like to trade binary options or forex. The reason for this is the high volatility of the cryptocurrency market. This is the reason why many binary options and forex brokers are now also offering cryptocurrencies, more specifically, Bitcoins. Since the mentioned volatility of the Bitcoin is high, trading with binary options brokers can be a great option for those who can take advantage of the market.

Being a decentralized digital currency, it is important to know that Bitcoin can be mined only in limited capacity. This way, Bitcoin keeps it purpose and characteristics, which is that is is completely independent of any central financial authority. This also means that Bitcoin is not susceptible to inflation or any other major or minor financial disruption. This is great information for all those traders who extensively use technical analysis for their trading as they can relatively accurately predict the trends involved in price formation and fluctuation.

It is also very relevant that it seems that now there we can expect a Bitcoin based ETF (Exchange Traded Fund) that is approved by SEC (Securities and exchange commission) showing that bitcoin is gaining a lot of importance in finance and global markets.

Of course, it is possible to avoid cryptocurrencies exchanges completely, including all the fuss around cryptocurrency storage and mining, but still get the chance to try out cryptocurrencies trading. Simply open a trading account with binary options or forex broker that has cryptocurrencies added to their portfolio and trade cryptocurrencies without actually owning them.

iqoption crypto currencies image

Bitcoin (BTC) versus Ethereum (ETH)

There a few important differences between Bitcoin and Ethereum which is now also one of the most popular cryptocurrencies. Those traders who are interested in joining the growing population of people using cryptocurrencies should be informed about what makes each of the digital currency special and how to use them.

Bitcoin is the first and classic peer-to-peer digital currency. This takes anyone else out of the picture, as you do not need to contact a middle man to do your transaction with another person. This includes banks or other financial institutions as you can simply contact the person and send any amount directly from your wallet to their wallet. Everything you need to do these transactions successfully all you need is working internet connection and a Bitcoin address. Obviously, you can be offline when someone else sends you bitcoins, but in order for you to use them, you do need to be online.

bitcoin priceIt is also worth noting that Bitcoin, as arguably the most popular and most widely used cryptocurrency in the world has reached its all time high in August 2017 where it hit a milestone of $4,000, which is an incredible 300% per year.

Now, with that said, and the fact that Bitcoins main goal is to decentralize money exchange, one needs to know how Ethereum aims to completely replace online places that store user’s data or any type of data with regards to financial issues so that no one has authority over it except for the users. When it was first introduced in 2014, Ethereum has consistently been rising in popularity due to the use of cryptography to assist financial transactions. Although it’s original use was meant to only facilitate the financial contracts between people using cryptocurrencies, now it has profiled into much more and is a legitimate competitor in the online cryptocurrency market.

Cryptocurrency Regulation

Given the nature of cryptocurrencies as digital currencies it has proven to be very hard to come to a global agreement on how to regulate them, or even should they be regulated.

As far as the European Union is concerned, the status of cryptocurrencies has still not yet been resolved as the traditional regulatory framework cannot be applied to cryptocurrencies considering they do not contain the traditional financial elements neccessarry to do so. The same issues are being noted in Nigeria specifically, as they have at one point ”banned” cryptocurrencies, however, since then the Central Bank in Nigeria has clarified that they cannot regulate or ban digital currency as it is decentralized and no one owns it. The similar stances are published across the African continent as more countries as realizing that they cannot impose regulations on digital currencies that do not have a central authority, and this has also causeed it to not have any legal status yet in these countries.

Across the North America, Specifically, Canada, United States and Mexico, cryptocurrencies are legal and are actually fairly regulated as their legal status is that of a decentralized virtual currency. In Canada, Bitcoin specifically, will be put under the anti-money laundering law while in the United States Bitcoin is classified as commodity. While in the rest of the world, cryptocurrencies have mainly been made legal, there is still a longway to go before an actual traditional regulation is put in place, and it is a question of wether that will even be possible .

List of Existing Cryptocurrencies

Next, we bring you a complete list of all the active cryptocurrencies that traders can choose to use:

Auroracoin

Created with the goal of addressing Iceland’s government restrictions which resulted in difficulties with currency movement outside of Iceland. It was originally based on Litecoin.

Bitcoinbitcoin logo

The very first and the most popular decentralized digital currency. Bitcoin made history when it appeared as the first digital currency.

Bitcoin Cash

This is the original hard fork of the Bitcoin which means that it is basically a creation of new blocks that is separated from the original currency software.

BitConnect

This digital currency that was made to enable people to invest their funds into currencies which are not governmentally controlled.

BlackCoin

Basic peer to peer cryptocurrency which uses open source. It secures it network through so called ‘minting’.

Burstcoin

This digital currency is also based on blockchain technology and is mined by using the computer storage instead of using conventional energy sources. This makes it very ‘economical’ as is is amazingly energy efficient.

Dashdash logo

Dash is an open source digital currency that offers private fund transactions, instantaneous transactions along with a budgeting system. This makes Dash a first organization that is autonomous and decentralized.

Dogecoin

This specific currency has started as a joke currency but over time developed into a cryptocurrency with a capitalization of US$340 million in 2017.

DigitalNote

The main difference between this cryptocurrency and Bitcoin is that Bitcoin is more opaque which basically means that it is untraceable.

Emercoin

This cryptocurrency is very similar to Namecoin and Peercoin and it was launched in 2013 with a notification to the miners before the launch happened.

Ethereumethereum logo

This currency, as mentioned above in the article is an open source that provides a token called the ‘ether’ which can be transferred between accounts and used for compensation.

Ethereum Classic

It has the same basis as Ethereum but provides a token that is called a ‘classic ether’ and can also be used for transactions and compensations for the performed computations.

Gridcoin

This currency allows for instantaneous peer to peer transactions across the world and has extremely low fees. It is open code and basically anyone can be included in its development.

IOTA

IOTA has a protocol that is called a tangle instead of a blockchain technology. With the blockchains every linked block points to a single addition, in tangles it links to two previous blocks.

Litecoin

Open source currency which is not mediated by a central institution or a group. It is basically identical to Bitcoin.

MazaCoin

The developer of this particular currency has hoped that it will help the poor conditions of Native American communities nationwide.

Monero

This is an open source cryptocurrency that is not based on Bitcoin but rather on CryptoNote protocol.

Namecoin

Namecoin is the very first fork of the Bitcoin and it uses the same algorithms as Bitcoin technology.

NEM

A hybrid of a public and a private blockchain technology that has been built from scratch.

Nxt

This platform has an integrated Asst exchange and also a messaging system. It also allows users to create completely new currencies in the system itself.

Omni

Also built on Bitcoin technology, Omni is supposed to develop a decentralized exchange and let users make and use much more complex financial functions than just transactions.

Peercoin

This currency was inspired by Bitcoin technology and actually has a lot of its original source code.

PotCoin

Peer to peer currency exchange that aims to be a conventional and standard form of payment in the cannabis industry. It is an open source cryptocurrency.

Primecoin

This currency’s software is based on searching for prime number as their proof-of-work along with it being open source and peer to peer.

Rippleripple logo

Ripple aims to create instantaneous global financial transactions regardless of size, without any chargebacks. It actually supports any type of tokens including mobile credits or flyer miles.

SixEleven

This cryptocurrency allows anyone to register names which are then permanently attached to the person who created the name, unless you give explicit consent. This means that no-one can censor you or steal from you.

SwiftCoin

This is a proprietary alternative to Bitcoin that uses very similar technology.

Synereo AMP

This company develops tools that allow users to monetize their work.

Titcoin

This type of currency employs pornography to manage new currency issuance. It is a derivative of Bitcoin code with certain adjustments and improvements in speed.

Ubiq

This network provides an environment for hosting Ethereum Virtual Machine which allows users to create new tokens and contracts.

Vertcoin

This software project has an important characteristic that differentiates it from Bitcoin and that is that it is very resistant to centralized mining and the developers promise to keep it so.

Zcash

Zcash offers a customizable level of privacy with payments that are published on the public blockchain but all the other details can be private.

As it is very easy to see, cryptocurrencies are taking the world by storm and they are not going down any time soon. As with any other financial option, cryptocurrency trading should also be approached from a standpoint of knowledge and education. This is the main reason we have prepared this ultimate cryptocurrency guide for you as we sincerely believe that the more you educate yourself with reagrds to financial trading, the greater your chances of maximizing your profit potential.

Make sure that you have checked out our broker reviews, lists of various broker categories and our top trading platforms to find out which of the brokers is the perfect fit for your financial needs and strategies. We are living in one of the most interesting historic periods for financial trading – be a part of it!

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