What are cryptocurrencies and why trade them?
The easiest way to understand cryptocurrency is to think of it as digital money. It’s very easy to imagine paper money – you have it in your wallet and you know it’s there. By the fact that you have it – it’s easily visible that it is yours. Cryptocurrencies exist in cyberspace, so a different system of knowing who owns how many was set up – its called blockchain, a distributed ledger where every transaction is tracked.
Table of contents
- What is a cryptocurrency exchange & how do I buy cryptocurrency?
- Trading Cryptocurrencies with Regulated CFDs and Forex brokers
- How to trade cryptocurrencies with a CFDs/forex broker
- What kinds of cryptocurrencies exist and how to trade them?
- How to use cryptocurrency exchanges – how to buy Bitcoin with CoinBase?
- Best Cryptocurrency Exchanges
- Scams in the Cryptocurrency Industry
Considering that cryptocurrencies are digital money, this means that you can use it in the same way as you would any ‘real’ currency and this includes exchanging it for another crypto – or government-issued currencies.
Many people are trying to engage in trading cryptocurrencies following their price rise in 2017, but even before. Everyone remembers that Norwegian guy who invested 26USD in Bitcoin in 2009 only to find himself 886,000 USD richer a few years later. Or, a Florida programmer who paid 10,000 Bitcoins he mined, in exchange for a pizza in 2010 – a pizza that would be worth about $60 mil today! After stories like this – it’s reasonable to see many people wanting to get in, however, the cryptocurrency business is still a new one, with many pitfalls and scams lurking around.
Auto Trading with Bitcoin, Ethereum, Dash and Ripple
Another popular way to trade cryptocurrencies is automated trading. As soon as they enter the auto trading world, traders will notice how there are many bitcoin, crypto, and ether robots available. Our main goal as a website is to provide traders with all the necessary information that will help them make the right decision for their trading.
CryptoRobot is one of the very few auto trading robots out there that supports crypto trading. Registered traders get access to most popular cryptocurrencies like Bitcoin, Dash, Ripple, Ethereum, Litecoin, and Monero. You can start trading with only $250 minimum deposit. Immediately after registration, you will be connected with a forex broekr that supports popular cryptocurrencies as well. Read the full CryptoRobot365 review here.
Brokers That Offer Cryptocurrency Trading with Bitcoin, Dash, Ethereum and other Coins
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:
This new broker not only supports trading in cryptocurrencies – it also allows deposits for a customer in Bitcoin and other cryptocurrencies totally anonymously. Read SimpleFX broker review.
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. Read IQoption review.
IQ Option makes trading these cryptocurrencies exceptionally easy — thanks to an easy-to-use trading interface and a large selection of tools and resources. IQ Option is a licensed broker that gives you everything you need to trade Bitcoin and other cryptocurrencies from the comfort of your own home. You can start trading in the World’s 12 most popular digital currencies within minutes of registering your account. Simply make an initial deposit using a variety of payment methods, and start trading using a combination of historical and the very latest market data.
Why Choose IQ Option?
IQ Option is one of the most trusted online trading platforms in the world of cryptocurrencies. With monthly trading volumes of more than $11 billion, this powerful online broker has a proven track record of performance. Users can trade crypto assets via the web or an app for desktop, iOS or Android. There’s also expert advice and support available from the experienced team of professionals at IQ Option — 24 hours a day.
Simply choose the currency you want to trade, and depending on whether or not you think it will rise or fall in value, choose the buy or sell option. You can set automatic buying and selling rules — which ensure your transactions go through as soon as certain conditions are met. IQ Option also gives traders the opportunity to take advantage of margin trading. Up to x25 trading leverage is available, which can make successful market predictions even more profitable. While losses can also be increased when predictions are incorrect, losses are limited to 100% of the trader’s initial investment.
IQ Option helps traders to make informed decisions by providing a range of analysis tools and reference material. In addition to the current and historical market data available, these tools can be used to predict what will happen to specific digital currency pairings. And there are tuition videos to guide you through all aspects of the trading experience.
24Option offers their clients retail trading on MetaTrader4 and the web platform. This same platform enables traders to also dive into cryptocurrency trading. 24option offers the following cryptocurrencies: Bitcoin, Ethereum, Dash, and Litecoin. 24option is CySEC regulated. Read 24option review.
While some are clearly thrilled about possible Bitcoin gains comparing them to Facebook stock appreciation, a more realistic and nuanced view to ensure safety for all traders is needed in our opinion, as also many scams have been happening in recent years where people have lost millions.
What is a cryptocurrency exchange & how do I buy cryptocurrency?
Cryptocurrency exchanges are websites where one can buy cryptocurrencies for euros or dollars (or other “real” currencies) and even exchange cryptocurrencies one for another. Naturally one can also sell cryptocurrencies back to get euros or other currencies supported by the exchange. Japan is one of the first countries that moved to regulate and endorse 11 cryptocurrency exchanges in order to ensure high standards of safety for customers. And this is necessary from what we have seen in the past few years where cryptocurrency exchanges were
- targets of hacker attacks (like MtGox 460 million disaster)
- shut down for being Ponzi schemes
- used to launder money made in illegal activities (like billions laundered by BTCe),
- found to be using client’s money for investments they were not aware of
- not obeying many safety policies that are standard in the finance today
- even socializing own losses by using users’ money, like Bitfinex
Results were devastating for customers who relied on them to safe keep their cryptocurrencies.
Some of the more popular cryptocurrency exchanges still suffer from the same issues, especially concerning KYC – know your customer policies, lack of transparency and often shady business practices, which is also why many have been banned in China recently, causing a fall in the price of cryptocurrencies.
If you scroll further below, you can see how to buy cryptocurrency on Coinbase of the exchanges and we have also reviewed many for you.
If you want to buy cryptocurrency using a regulated company – you can do it with eToro. In September 2017 they launched service where customers buy cryptocurrencies through their system, and they are regulated by CySEC in Europe.
Trading Cryptocurrencies with Regulated CFDs and Forex brokers
Another way to invest in cryptocurrencies but with higher levels of customer protection is by using regulated CFDs and forex brokers. Cryptocurrencies are very volatile so it’s not always a good idea to keep them as the trading account currency since wild swings can erase any earnings you had while trading. Same goes for simply keeping them in an exchange wallet. For more on forex and CFDs trading, see our forex trading guide. Also, you cannot bet against the cryptocurrency if you are convinced the price will fall, you can short Bitcoin with CFDs.
If you deposit in EUR or USD you can still profit from either the falling or the rising price of the cryptocurrency without actually being invested in a very volatile asset that may cause significant losses until the time you manage to exchange it to USD or other currency. Bitcoin or Ethereum price tends to move 3-6% a day, for EURUSD changes of 1% are considered a huge swing in the market (picture from my account). Remember JPMorgan’s Jamie Dimon calling Bitcoin a Fraud causing an 8% drop in its value immediately.
An additional advantage of CFDs and forex brokers are that you can set stop loss by defining in advance how much you are ready to lose and thereby limiting your potential loss if the cryptocurrency price moves against you. You can’t do that if you are holding cryptocurrency in exchange account.
Advantages of trading cryptocurrencies with regulated CFDs brokers:
- customer protection through regulation
- you are not holding cryptocurrency which can fall and rise from day to day – your account is in USD, EUR…
- use of leverage to increase possible wins
- safe CFDs trading platforms that don’t get hacked
We have already listed the best brokers above in the article!
Alternatively, you can also use auto trading software based on advanced algorithms for your crypto trading. One of the most popular crypto auto trading software is CryptoRobot365. Read the CryptoRobot365 review.
How to trade cryptocurrencies with a CFDs/forex broker
Assuming you have already signed up and created an account with a broker which offers crypto trading, see an example how to trade cryptocurrencies on the IQoption platform, which is one of our favorites due to a great demo account, low $10 minimum deposit and a good interface.
Step 1 Choose cryptocurrency you want to trade – we chose Bitcoin
In this case, IQoption offers a selection of several cryptocurrencies: Bitcoin, Dash, Ethereum, IOTA, Litecoin and Ripple and more. We have included a full list of cryptocurrencies below in the article.
Step 2 Enter details of the investment in Bitcoin
As with any other asset, you need to enter how much you want to invest, in your account currency. Ours here is USD and we are buying a $100 worth of Bitcoin CFDs and that we have set the stop loss at -5%, meaning if we lose more than 5% (or 5USD) our trade will automatically close to prevent further losses. We have also set that the trade closes if we reach 5USD/5% profit
Step 3 Make a trade – Buy or Sell Bitcoin CFDs
Now, since you believe the price of Bitcoin will rise, you are choosing BUY. You would choose to SELL order if you expected the price will fall. You see from the screenshot we bought 0,0179 Bitcoin for 5577,48 USD /Bitcoin in expectations it will be higher later when we close the trade.
How to trade cryptocurrencies with forex and CFDs brokers in MetaTrader4
Trading cryptocurrencies in MetaTrader platform is the same as any other asset. First, you have to make an account with a broker that supports MetaTrader platform – such as AvaTrade or SimpleFX. Then when you download the platform and log in with the provided credentials, just choose cryptocurrency asset you are interested in and use MetaTrader as you would with EURUSD. If you are not familiar with MetaTrader – read our guide on how to use MetaTrader.
What kinds of cryptocurrencies exist and how to trade them?
Next, we bring you a complete list of all the active cryptocurrencies that traders can choose to use:
The List: Most popular cryptocurrencies for trading
The very first and the most popular decentralized digital currency. Bitcoin made history when it appeared as the first digital currency. However, Bitcoin is also a digital payment system that works without a central administrator or authority. No one knows who the inventor or inventors are but the name Satoshi Nakamoto is used to refer to the maker(s) of Bitcoin. The purpose of Bitcoin is multiple as it can be a reward given for crypto mining, exchanged for fiat currencies, payment for services and products. Most of the cryptocurrency owners and users are in possession of Bitcoins as it is still the most used digital coin out there, but more and more are speculating on its value. Bitcoin is now split into two : classic bitcoin (BTC) and the Bitcoin Cash (BCH). Next version will probably be called Bitcoin Gold /BTG.
This cryptocurrency is basically electronic cash used on the internet and it is the original hard fork of the Bitcoin. That means that it is a creation of new blocks that is separated from the original currency software (Bitcoin). BCH is completely decentralized and doesn’t rely on any third party to be operational. As we mentioned, as a continuation of the original Bitcoin creation process, BCH has grown and became a totally separate currency.
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. Some think Ethereum might be the future top coin, which could definitely increase its value.
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.
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.
Open source currency which is not mediated by a central institution or a group. It is basically simlar to Bitcoin.
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
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.
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. The creators of this cryptocurrency have said that their primary plan was to give half of the ever-created Aurora coins to Icelandic population free of charge, which was calculated to amount to 31,8 Auroracoins per one person in Iceland. This particular digital coin has peaked at around 0.1 BTC but since fell in value significantly. The undistributed coins were destroyed on April 22, 2015.
Basic peer to peer cryptocurrency which uses open source. It secures its network through so-called ‘minting’.
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.
The main difference between this cryptocurrency and Bitcoin is that Bitcoin is more opaque which basically means that it is untraceable.
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
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 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.
The developer of this particular currency has hoped that it will help the poor conditions of Native American communities nationwide.
This is an open source cryptocurrency that is not based on Bitcoin but rather on CryptoNote protocol.
Namecoin is the very first fork of the Bitcoin and it uses the same algorithms as Bitcoin technology.
A hybrid of a public and a private blockchain technology that has been built from scratch.
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.
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.
This currency was inspired by Bitcoin technology and actually has a lot of its original source code.
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.
This currency’s software is based on searching for prime numbers as their proof-of-work along with it being open source and peer to peer.
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.
This is a proprietary alternative to Bitcoin that uses very similar technology.
This company develops tools that allow users to monetize their work.
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.
This network provides an environment for hosting Ethereum Virtual Machine which allows users to create new tokens and contracts.
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.
How to use cryptocurrency exchanges – how to buy Bitcoin with CoinBase?
Just like with CFDs/forex brokers, when you are planning on using cryptocurrency exchanges to buy and sell your cryptos, you are going to need to go through a couple of steps:
Step 1 Make an account and verify it
This is a self-explanatory step and doesn’t really need a big introduction. Choose your crypto exchange, go through the steps to open an account which typically involves just providing a few basic information. Next, you will submit your application and verify the account after you receive an email from the chosen exchange.
Step 2 Add a payment method
Cryptocurrency exchanges typically offer various payment methods for traders to make their deposit. Choose the one that is the easiest for you to use and fund your account!
Step 3 Select your cryptocurrency
Select any of the offered cryptocurrencies, decide on the amount you want to buy.
Step 4 Ready, Set, Exchange!
That is it! After Pressing buy the cryptocurrencies are exchanged for your “real” money and added to your wallet where you can also track their value in your account’s selected currency (in our case EUR, on Coinbase).
Best Cryptocurrency Exchanges Reviews
We bring you only the best cryptocurrency exchange reviews as we believe that our readers deserve to know which exchanges are worth their while and what is good and bad about them. Keep reading to find out what are some of the top crypto exchanges:
Etoro is a complete surprise on the crypto skyline with their newly launched financial instrument called CopyFund. According to Etoro, this is one of a kind product that is able to welcome anyone into the global crypto markets – regardless of their experience. While Etoro originally ran a crypto CFDs business, since September 2017, they decided to offer full crypto currency exchange functionality – you can buy cryptocurrencies with them.
Cex.io is one of those platforms that truly offer a wide variety of services to everyone interested in trading cryptocurrencies. You can, obviously, trade cryptocurrencies for pretty much any fiat currency you wish and vice versa.
This is mostly aimed at those who aren’t proficient in trading cryptos per se, as the platform also offers services to those wish to up their game in trading cryptocurrencies. The Cex.io platform offers an intuitively designed platform and is supported worldwide which we believe is a big plus.
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, Ethereum, and Litecoin from them via an e-wallet that can be used with both iPhone and Android.
It really isn’t a surprise that CoinBase is one of the most popular trading platform worldwide considering that you can use it to buy, sell and store your cryptocurrencies – all in one place. The platform itself is very user-friendly, and what is more important is very beginner friendly. This is a crucial factor since cryptocurrencies are still a relatively fresh thing and people need time to gain experience. With this in mind Coinbase has also made sure to offer an insurance for clients who store their cryptocurrencies with them.
As we like to mention, regulated exchanges are typically offering a complete service to clients considering that they do adhere to higher authority requirements in their business dealings. This particular exchange was founded in 2014 and it is indeed regulated.
According to our and general experiences of a wide array of users, CoinHouse is one of the most secure cryptocurrency exchanges that can be found. It is a direct product of the team that created the famous Ledger Nano S hard wallet. When this is taken into consideration it is easy to see how this exchange has extremely high security measures and amazing user experience.
Although CoinHouse does have rather hefty fees, the great thing is that the more bitcoins you decide to buy from them, the less you will pay in fees which is a great benefit.
For more information on how to buy bitcoin at exchanges, check out bestbitcoinexchange.io
How can I 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. When you buy cryptocurrencies you need to store them, for you they appear in your cryptocurrencies wallet, but in the system, everyone knows they belong to you because blockchain – a distributed ledger is used. This means is that you have a custom “address” where your cryptocurrencies are located and need to approve any change.
Your wallet will have two addresses (“numbers”) 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 types of e-wallets are there?
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 to an actual printout of your key, which is then updated every time you add or take out funds. You can also transfer funds from your virtual wallet to your paper wallet and vice versa.
Best Cryptocurrency Wallet Reviews
The answer to what is a cryptocurrency wallet is pretty easy and relatively uncomplicated – it is a software that offers storage for cryptocurrency keys and makes it possible for users to send cryptocurrencies and receive them without a hassle. Obviously, users can monitor their crypto balance also, which is extremely important.
CryptoPay offers clients to sign up and get either a physical card that will be sent to the user free of charge or a virtual card. This specific crypto wallet is a great way for people who own cryptocurrencies to use them without having to worry if they will able to use bitcoin in the location they are currently in.
CryptoPay works by literally converting bitcoin into many offered real currencies. This means that bitcoin users who like to travel internationally can use their funds in a very convenient way. CryptoPay, however, does not accept US customers as it is not a regulated wallet.
Ledger Nano S wallet is used to store many cryptocurrencies not just Bitcoin. Some of them are ETH, ETC, Dash, Ripple, Stratis, ZCash and Litecoin.
One of the best things about Ledger Nano S, except the fact that it is one of the most popular wallets in the world, is that users can actually have many different accounts for as many cryptos as the want – all with the same backup key. This is extremely practical as you can keep not only your own cryptocurrencies but also for your friends or family as the different accounts can be labeled.
This product is compatible with Chrome, Linux, Mac and also Windows, however, it is important to add that the user does not need to be online in order to receive cryptos to their wallet with Ledger Nano S.
Luno Bitcoin Wallet
Luno is actually a former BitX cryptocurrency company that operates both as an exchange and a wallet. This particular company is known for enabling Bitcoin transactions and also storage through their wallet services. It is also worth mentioning that Luno is very popular with countries that do not have many other exchanges available since with Luno you can even trade the South African Rand among other cryptos.
We also need to highlight that the Luno exchange is only accessible to those living in Nigeria, South Africa, Malaysia and Indonesia, while everyone else can only use the wallet.
Crypto gambling and bitcoin casinos
Aside from buying, selling or exchanging cryptocurrencies, you can also gamble with your bitcoins and other altcoins. This should come as no surprise as the last few years have been monumental for the development and use of altcoins. As the prices of cryptocurrencies grew, so did the gambling market as more and more people wanted to spend their altcoins in online casinos and other gambling sites.
Now there are quite literally hundreds of casinos and gambling sites that accept not only bitcoins but most if not all other types of cryptocurrencies. This is great news for all those players who have been waiting for the opportunity to spend their altcoins and have fun doing it. You can choose from various different types of sites: from those that require no registration whatsoever, those that have anonymous registration, to those that are just regular gambling sites that happen to accept cryptocurrencies also.
Gambling sites like LuckyGames accept not only bitcoin but 30 other cryptocurrencies as well. Crypto-Games online casino allows you to bet your altcoins on the lottery, slots, roulette and much more. As far as sportsbooks are concerned Sportsbet.io is the perfect place for those obsessed with sports betting and it is available on all devices.
What is cloudmining it and how can I start?
Blockchain works in a way that everyone in the network “knows” where all the cryptocurrency units (Example: Bitcoins) are – that’s why we call it a distributed ledger (a book where all transactions are written). If you own cryptocurrency, others in the network don’t know your name, but your “number” – if you send some Bitcoins to someone else, the system distributes this transaction to everyone’s knowledge and when most have approved it, the transaction takes place and is seen by everyone as successful –another block in the blockchain was just created. This means that certain amount of Bitcoins you sent is now owned by another “number”.
Since Bitcoin is essentially a protected piece of code – it is encrypted with a hard to solve math problem, heavy calculations are necessary to process these transactions – so the computer which is first to calculate this, and enable the transaction to take place, is rewarded by new bitcoins. As more and more transactions are required, this calculation gets harder, so stronger and stronger computers are needed to “mine” new bitcoins. Many people want in since the price of bitcoin and other cryptocurrencies is so high meanwhile, that it pays to spend a lot of money on heavy computer systems, just to mine them.
Scams in the Cryptocurrency Industry
As with anything else, cryptocurrencies can also be a potential focus for those determined to scam honest people out of their money. Although bitcoins and other cryptocurrencies were created in order to provide an instantaneous exchange without needing to use banks or any other centralized authority that might have control over it. However true this might be, in order to buy, sell or exchange your cryptocurrencies there is still a need for some sort of a middleman. This is where it gets tricky as this is something where many will try to scam you.
Here’s what to look out for when it comes to cryptocurrencies:
- Shady exchanges and brokers that are neither transparent nor trustworthy. Make sure you are completely sure that the exchange you are using has excellent reviews and people actually trust it as you do not want it disappearing overnight.
- A bit of a tip-off might be if the customer support you are contacting is either unhelpful or non-existent – stay away from those exchanges. Customer support should be available for any question you might have but also, the agents should be professional and polite.
- If you come across a cryptocurrency exchange of broker that is using a very hard to understand the language or the website is full of grammatical and spelling mistakes, you can be pretty certain that this is something you do not want to be a part of. Being professional and trustworthy means that the representation of your company must also reflect that.
- Perhaps the most prominent characteristic of scam companies in cryptocurrency industry are those that cold-call their clients. Aggressive selling strategies coupled with cryptocurrency that doesn’t exist are a recipe for disaster. Real brokers and exchanges are never going to call potential clients and they most certainly won’t be offering any coin that no one has ever heard of.
Cryptocurrency Trading Complaints
One of the most prominent aspects of crypto trading is automated cryptocurrencies trading. At the moment, due to the popularity of cryptocurrencies, robots and algo trading software is becoming a no 1. choice for traders all over the world. Also, many companies are launching crypto trading robots, but according to complaints on online forums, many of these robots show unethical and unprofessional behavior and often tend to be related to certain practices that can cost you, the trader, money.
Cryptobo is one of frequently mentioned cryptocurrency trading robots on online forums. Even though it promises great trading experience, like so many others, it is impossible not to notice how it allows depositing and withdrawing exclusively in bitcoin. Considering how cryptocurrencies are still quite unregulated, there is a great chance that traders are entering the danger zone, as there is no guarantee how this robot and auto trading provider won’t disappear overnight. If you already own some cryptocurrencies, we suggest you find a reliable and regulated exchange in case you want to trade in that way. Still, trading with brokers that offer cryptos as an underlying asset is more convenient.
CryptoSoft or CryptoSoftware is another product that promises easy and simple cryptocurrencies trading. However, this website goes one step further and promises instant results. One of the main red flags in the world of trading is exactly that: promises of great profit without much effort. CryptoSoft also lacks any basic information about trading terms and conditions, or explanations what the product actually is. There are numerous CryptoSoft complaints that can be found online, mostly related to unclear trading conditions and making promises they can’t keep. Bear in mind to select a solid and reputable crypto broker once you decide to take that step.
Another frequent guest on various forum topics is TeslerApp. TeslerApp promises you to see results in 5 minutes and promises up to $5700 profit in a single day. IT is always good to be a bit cautious when someone is promising you a lot of money for basically no effort at all. TeslerApp is basically just a binary options trading software (it clearly says so in the footer), and actually has not much to do with crypto trading. TeslerApp complaints can be read on several forums and online chat groups.
Cryptowealth is in many ways similar to TesleraApp and CryptoSoft, so no wonder traders sometimes mention them together in their online complaints. Fast profit, no precise explanation on what the product actually is, and buzzing keywords are the main characteristics of this product. Non-transparent business practices and low customer production standards should be the main concern for traders that come in touch with this crypto trading robot.
Some of popular trading and exchange platforms for Crypto
Hello Group has oriented towards offering full package product that is 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 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 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.
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.
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 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.
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 its purpose and characteristics, which is that it 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.
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 middleman 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.
It 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. Later that year it went over $7000 and who knows its price now, when you are reading the article.
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.
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 necessary 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 caused that they don’t have any legal status yet in these countries.
Across the North America, Specifically, Canada, the 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 a commodity. While in the rest of the world, cryptocurrencies have mainly been made legal, there is still a long way to go before an actual traditional regulation is put in place, and it is a question of whether that will even be possible.