Cryptocurrency trading platform in Cameroon - Ethereum, Tron, Bitcoin trade
What is Crypto?
Cryptocurrency is a completely digital asset that works through a system called blockchain. Cryptocurrency has become a very popular financial instrument in the market, but it wasn’t always the case. When it first came out in 2009, there was a lot of resistance to this new form of asset. It was unlike any other assets because it was purely digital and did not inherently have any value attached to it directly.
As time went on, it became clear that the way crypto operates was its fundamental value. This is because it is created from the powerful system called blockchain that provides several benefits other forms of currency simply cannot. It is also because it is decentralised and therefore does not operate through a specific entity that controls it.
Blockchain, in the case of crypto, works by connecting every transaction together. It is essentially a ledger recording every time currency changed hands. Whenever a new transaction is made, it is added to the chain. This makes it transparent and very secure because each action taken with this currency is stored in the system and connected across a large network.
As we get to understand this type of asset better, we can start to look at how to trade cryptocurrency in Cameroon and the options traders have available from there. Thanks to the growth of this instrument and the power of the internet, the availability of this form of trading is rapidly growing everywhere.
Crypto is perfect for online trading as it is already a digital asset
Benefits of Crypto
The majority of a crypto’s value comes from the benefits they provide their users. A better way to understand the capabilities of crypto is to look at some of the benefits it provides. These factor into the value of this digital asset and therefore play an important part in how they operate in the market. To become a top bitcoin trader, you must understand the asset you are working with.
- Decentralised. One of the primary benefits of having a currency decentralised is that it gives the user full control in the way they want to spend it. There are no banks or governments that have control over how much there is and how it can be used. This gives full authority to the user and cuts out the middleman in the process.
- Anonymity. While blockchain is a transparent system, the individual members involved with the currency it generates remain anonymous. Every time you make a transaction with crypto the address affiliated with you changes and it becomes very hard to identify who did what. For online transactions this is particularly useful because it does not divulge this information to the site you are transacting with.
- Easy Transactions. Since blockchain connects the entire crypto system, it is easy to send payments to and from others in the system. There is a direct route to each account and no need to go through another entity along the way. These transactions also happen instantly. You can also much more easily make transactions through mobile and anywhere around the world.
- Reduced fees. Again, thanks to the fact that these currencies are decentralised, there are fewer costs involved with transactions. Banks have been an authority for so long that they have been able to incrementally charge more and more just for storing money and facilitating transactions. With crypto there is no need for this and as a result there are fewer fees attached. This applies even more so for international payments that would normally have to go through several authorities.
These are a few of the main benefits but there are many more when it comes to crypto
What Changes Crypto Prices?
Many aspects are constantly influencing the value of an asset on the market. Before jumping into crypto trading, it is important to understand what gives these assets their value in the market. In order to make the right calls while trading, you must understand what powers are creating the changes to an assets value.
- Available Supply. Like with every asset, the amount of supply available will factor heavily into the value it has. A smaller supply and increased demand will raise the value of the asset. With crypto this is even more complicated because there is a fixed limit of coins that can be produced for each one. On top of this, these coins are mined over a period of time and this rate is constantly hanging as it reaches the limit.
- Opinion. This is another factor that affects pretty much every asset on the market. When people like something they will want more of it, and so the demand increases. If the supply stays the same or increases slower than the demand, the price of that asset will grow. With crypto this is especially powerful because it does not have anything directly governing its value, like a government.
- Significant Events. The main one here is the implementation of regulations and restrictions. If certain countries or groups start creating obstacles for the use of crypto, it will negatively affect the value of it. If you cannot use this as a currency in a certain area, then it does not have any value in that area. The more places that follow this, the more value is lost.
- Integration. This is the opposing side of the scale, where the more it is accepted online or in other regions, the more stable and stronger the value becomes. This reduces the volatility of something like crypto which already does not have much to attribute a certain value to. It is a great way to understand the upper and lower limits to this asset’s unpredictable movements in the market.
There are even more factors that can play a role in the value of these digital assets.
Ways to Trade
Understanding the different ways to trade crypto will help you decide which works best for you
Finally, moving on to the trading side of cryptocurrency. There are two main ways of working with these assets and that is you either buy or trade cryptocurrency. These are through an exchange or as CFDs. Exploring each in more detail may shine a light on how they each operate.
This is the more traditional form of trading, in which two different parties exchange assets for other, similar assets. In the case of crypto this is traditionally done in pairs, trading one crypto for another. However, there are also options to trade crypto for other assets, most commonly is traditional fiat currencies.
An exchange generally requires you to have a digital wallet that you can use to hold your digital assets. You can then use the crypto you have in this wallet to trade for the other assets you want. This works much like stocks, where you try and hold the asset until its value changes so that you can then sell or trade it for more than you initially did.
A contract for difference (CFD) is a way of trading on the value of an asset on the market without ever owning that asset. Since you are not actually trading one asset for another, you do not even need to have any cryptocurrency at all. Instead, you are speculating on the price changes and making money from that speculation.
For example, if you think that a particular asset’s value will change in the future, you can acquire a CFD that allows you, if you so choose, to buy or sell that asset when the future date comes around. You can then choose to do this at the original price, the price the asset was when you took out the contract.
If the price does change, you can then sell that contract or execute it yourself. In most forms of CFD trading you will be making these contracts directly with your broker and they will terminate at the end of the period determined when the contract was originally executed. As a result, you can make money from CFDs regardless of which direction the market moves, as long as you predict the correct direction and it occurs within the time frame.
Another big factor with this form of trading is that they may be leveraged for more substantial values. This amplifies investments and overall volume you can trade. While it grows potential profits, it also grows possible losses and should be used with care.
While a crypto exchange is definitely an interesting way to go with regard to trading this type of digital asset, the much more popular option is through CFDs. The reason for this is the leverage available with CFDs and the general ease of use that this form of trading has over an exchange. Especially for beginner traders, it is easier to get started when you don’t even have to have crypto to start trading on it in the market.
Both forms of trading have their own advantages and disadvantages.
The Most Popular Cryptos
With so many cryptocurrencies now in existence, there are a lot of choices when picking what to trade. Still, there are a few options that lead the pack as the top digital assets currently on the market.
The most popular and valuable crypto on the market. Bitcoin started the whole process when it came into existence in 2009. As the forerunner in the game it has set the tone of how the world looks at this new form of asset. It is significantly more valuable than the nearest competitor but still faces many of the challenges of the rest of them.
Bitcoin has had many ups and downs over the years. Rising rapidly in quick succession and then falling almost as fast. It is perhaps the most volatile of all cryptos simply because it has reached the highest peaks and then fallen to some severe lows. Currently, it has maintained a substantial value on the market, stabilising to a small degree. This makes trading it very interesting and full of massive potential, for both profit and loss.
Bitcoin is also the most common crypto you will find on the market, with any broker that deals with this type of asset definitely having some bitcoin options available.
Ethereum is the second most popular and valuable crypto option. This is the name of the network itself; the coins are called ether. Starting out in 2015, this asset had the time to observe bitcoin, and the mistakes it made, adding more value and flexibility to the system. That being said, it is still based on the blockchain technology and operates in a similar fashion to its famous predecessor.
Since it is still fundamentally a cryptocurrency, it carries a similar volatility and experience on the market. As it gets more popular, it experiences the same sort of swings as bitcoin. This makes it a prevalent asset to trade with as the price can fluctuate dramatically. It is also affected by the same sort of market forces as other popular crypto options.
This is another growing crypto network that primarily focuses on the world of entertainment. Releasing in 2017, the primary focus has been to enable compensation for content creators all around the world. Utilising the efficiency and capability of the blockchain system, they have integrated into many online communities and continue to grow and spread.
Like with the other top cryptocurrencies, Tron is subject to similar forces in the market. As its popularity grows, it faces volatility common throughout the digital asset industry. While it has made stabilising and long lasting connections with powerful and valuable networks, like Baofeng, it still faces significant shifts in the market. These shifts are not as substantial as Ethereum and bitcoin but still make for classic crypto style trading on the market.
Mark of a Good Cryptocurrency Trading Platform
Know what you want out of your broker so you can get the most advantage out of trading
Since we have leaned more toward CFDs here, it is useful to look at some factors that make up a good crypto trading platform in this regard. There are certainly some aspects to keep an eye on, so you know when you have found the perfect one for you.
- Number of Assets. A big part of any trading experience is having a whole bunch of assets you can use to trade on. The more assets available, the more control you have over the outcome. Not all assets are created equal, so with a range of options you can experiment with different ones and see which works best for your strategy.
On the topic of strategy, a range of assets lets you diversify and invest across the board. This way, even if some of the cryptos are moving unpredictably, there will be a few that are more constant and reliable.
- Market Tools. There are many tools that can help make better decisions in the market. These include charting tools, signals and indicators and much more. The idea behind these is that they can provide additional information on an asset and how it might move in the future. It increases predictability and gives more power to the trader making the decisions.
- Demo. This is a free account on a trading platform that lets users interact with the market without making any real investments. It is an essential device for learning the market and how to make trades. Especially for beginners, this is an important piece of any crypto trading experience. Beyond that, it also lets you practice various strategies on the market before using real money.
One of the best demos is the one IQ Option provides its users. This is because you can switch effortlessly between the real account and the demo, making changes to a strategy and then immediately implementing it. The account is also refillable so there is literally an endless amount of free access you can have to market.
- Payment Services. This is one that applies more so to some traders. The ability to access the platform and make transactions requires the use of a payment system. There are many around online, but each user will be most comfortable with the few they have preferred. If the broker does not have that option, it instantly becomes more complicated to interact through their platform.
The upside of IQ Option here is that they have a range of options to use as payment services and even more, so they accept bitcoin as a means to make these deposits. This gives you the best of both worlds, you can use your crypto to access the crypto market.
- Security. This is a factor so important to online trading that it seems intuitive, and yet deserves mention for the same reason. When you are dealing with money moving back and forth, you have to prioritise the safety of your accounts and the money being moved around.