Online cryptocurrency trading

Online cryptocurrency trading

Online cryptocurrency trading

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Cryptocurrencies are becoming a more and more popular investment tool in the world. Those who spoke about the marginalisation and imminent demise of cryptocurrencies have to deal with the fact that they were wrong. It might even be theorised that the world is witnessing a crypto-revolution right now. More and more entities are starting to invest in various cryptocurrencies. New ones are also appearing all the time. One can invest and trade in them at home, online. How to do it?

Cryptocurrency exchanges

The simplest and most common way of trading in cryptocurrencies online is to create a trader account on one of special cryptocurrency exchanges. Such exchanges operate in Poland as well and have Polish personnel, so even people who do not speak any foreign language can start to trade and the Polish-language exchange makes trading even more comfortable.

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Special cryptocurrency exchanges offer trading in popular cryptocurrencies online, including  Bitcoins, Litecoins or Ethereum. It is best to choose such an exchange that cooperates with financial institutions supervised by regulatory authorities – in Poland it is the Polish Financial Supervision Authority. In general, virtual exchanges must be registered and operate as a capital company, which have to be entered in a relevant register.

Cryptocurrency wallet

When trading in cryptocurrencies online via an exchange, the investor must also have a proper virtual currency wallet where their cryptocurrencies will be stored. A wallet is a conventional term as the investor simply receives private electronic keys allowing them access to the currency and to make transactions. The selection of the wallet is a very important step of investing in cryptocurrencies online. Therefore, the investor should meditate on how many funds they will store in it, whether they will use it on their personal computer only or a mobile device logging in the network all around the world. The investor can choose from the following cryptocurrency wallets:

  • applications,
  • offline wallets, the so-called safe,
  • Internet browser wallets,
  • mobile wallets,
  • hardware wallets in the form of an USB key.

If the investor would like to invest e.g. in Bitcoins and would like to store a higher number of them in their virtual wallet in the long term, they should choose e.g. PaperWaller. On the other hand, beginner investors should the BitGO wallet. There are also other wallets that are used for virtual currencies alternative to Bitcoin.

To increase the safety of investing in cryptocurrencies, it is worth strongly diversifying the funds kept in various wallets.

Currency purchase through an online exchange office

Online exchange office are used every day by millions of clients to exchange the main global currencies, but there are also such exchange offices that offer clients cryptocurrencies, e.g. Usually, you do not need a client account to use such exchange offices. It is enough to declare a specific amount in the chosen currency and the exchange office will respond by offering a specific amount of cryptocurrency. The client incurs quite a high margin, which such exchange offices impose. Moreover, they themselves quote their own cryptocurrency exchange rate, which is not necessarily beneficial and may not reflect the market value.

 Cryptocurrency forums

There is a lot of thematic discussion forums concerning cryptocurrencies. This is also where clients announce their willingness to sell or buy Bitcoins or other cryptocurrencies. Nevertheless, caution is advised as you never know who would like to buy or sell a currency.

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The mode of trading in cryptocurrencies online that is the most beneficial and safest for the client are still cryptocurrency exchanges, where you first register your account and then start to play. What is beneficial for clients is that on the exchange, cryptocurrency exchange rates are determined by the market itself, on the basis of the mechanism of supply and demand. Cryptocurrencies can be bought and sold online via both foreign and Polish exchanges.

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