Cryptocurrency – Tutorial and Brokers

Cryptocurrency day-trading has boomed in recent months. High volatility and the scale of trading of cryptocurrencies match very well with Here we provide some tips for crypto, including strategy information, tools, and trading bots – as well as unique items new traders need to learn about, such as taxes or rules in some markets.

We will also list the top crypto brokers in 2020, and demonstrate how brokers can be compared to find the right one for you.

How To Trade Cryptocurrency

Here’s a simple plan to get you to quickly sell cryptocurrency;

  1. Decide whether to buy the asset, or just have a hunch that its value would go up or down.
    • You need an exchange if you want to own the currency – Try Hodly – It’s a simple, user-friendly app.
    • You need a broker if you wish to speculate on the offer. Use a complete list on the broker tab.
  2. Fund your account.
  3. Buy your desired cryptocurrency, or open a trade on its price.

Congratulations, you are a crypto-monetary dealer now! Know, on a broker’s demo account you can operate by buying or selling cryptocurrencies. Unfortunately on an exchange you can’t train.

Trading crypto is generally about speculating on the stock, rather than owning any of the actual coins. Brokers that sell forex and CFDs are typically an easier introduction for beginners than the alternative of purchasing real currency through an exchange.


How to Compare Brokers

What crypto-monetary platform you want to transact on is one of the most important decisions you’ll make. The exchange for your cryptocurrencies will serve as a digital wallet so don’t dive in without first considering the factors below.

Some brokers specialize in dealing in crypto, some less so. Some come up with different items. For example, IQ Choice are providing traditional crypto-trading via Forex or CFDs – but also offering multipliers in crypto-currency. These provide greater control and thus also risk and reward. Innovative goods such as these may be the difference when opening on account cryptocurrency.

Apps & Software

Day traders need to be constantly tuned in, because responding to major news events just a few seconds late might make the difference between profit and loss. That’s why many brokers now sell user-friendly smartphone applications for cryptocurrencies, meaning you can keep up-to-date whether you’re on the train or making your day’s sixth coffee.

The cryptocurrency trading site you sign up for is where you spend a significant amount of time every day, so look for one that fits your business style and needs. Exchanges like Coinbase, such as the Global Digital Asset Exchange (GDAX), offer in-depth platforms. To ensure the exchange has the technical tools and services you need, it is also worth setting up a demo account first.


Also search feedback to ensure stable exchange in the cryptocurrency. You will be gone forever if your account is compromised and your digital money transferred out. So while safe and complicated credentials are half the battle, the trading program must fight off the other half.


Every exchange has specific transaction rates and charging structures. Only a small change in prices will significantly cut into profits as a day trader making a high volume of trades. In contrast there are three primary fees:

Final Word On Brokers

That is not a small decision to take. Do the maths, read comments and check the software and exchange. Coinbase is commonly considered one of the most reputable platforms, but it is also a smart alternative to trade cryptocurrency on Bittrex. More common options include CEX.IO, Coinmama, Kraken and Bitstamp.

Market Rates

Cryptocurrency Trading For Beginners

There are a few simple things to get your head around first, before you pick a broker and explore various platforms. Understanding and embracing these three things will give you the best chance to succeed when you move into the world of crypto-trading.


Instead of speculating on the amount, you need to store it if you want to own the actual crypto-currency.

There are a vast number of wallet providers, but the use of lesser established wallet providers or exchanges often faced risks. We recommend a service called Hodly that is sponsored by controlled brokers.


If you’ve settled on a broker, got your site mapped out in your head and funded your account, it’s time to start trading. In order to make a profit, you would need to use an effective plan in accordance with an efficient money management method. Below is an example of a simple approach on cryptocurrency.

Swing Trading

Clearly that simple policy requires diligence. The intention is to keep a close eye out in a pattern for a correction, and then take the ‘jump’ out of the correction and back into the trend. A correction is literally when overlaps with candles or price bars happen. You will note that rising rates are shifting quickly but, on the other hand, corrections do not.

Let’s say on your 250-minute candles crypto-currency table, you see 25 candles where the price stays within a range of 100 points. If the price contracted to a mere 20 points regular transfer, you will be seriously interested and on call. You ought to see a lot of overlap. It tells you there is a strong risk that the price will continue into the cycle.

If the first candle went below the contracting range of the previous few candles, you would then sell, and you should put a stop at the latest minor swing high. It is easy and efficient.


There are a variety of general tips even with the right broker, tools, money, and strategy that can help maximize your profit margin and reduce losses. Here are some helpful tips to bear in mind on cryptocurrencies.

Utilise News

Cryptocurrencies in the short term are highly vulnerable to relevant news. When news such as government legislation or a cryptocurrency exchange theft occurs, prices appear to plunge.

On the flip side, if a big company decides that they’re going to integrate the use of a currency into their company, prices will climb quickly. When you are aware of the news and are able to respond quickly, you will have a advantage over the rest of the sector.

Technical Analysis

Historical price charts are analysed to find telling trends. History has a habit of repeating itself, and if you can hone in on a trend you may be able to forecast future price fluctuations, giving you the advantage you need to make a profit intraday.

Study Metrics

It is one of the crypto-currency tips that is most relevant. When looking at the number of wallets vs the number of active wallets and the current amount of trading, you may seek to assign an actual value to a particular currency. Then you can make educated choices, based on the market price of today. The more reliable your forecasts are, the greater your chances of income.

Trade On Margin

When you expect a particular price change, margin trading would allow you to borrow money to raise your future profit if your forecast materialises. Exchanges have different criteria for margins and offer differing rates so it is best to do your homework first. Bitfinex and Huobi are two of the most common plateforms on the margins.

Selling or speculating using leverage increases the size of potential income and losses.

Rules & Taxes

The digital economy is fairly new, which means that countries and governments are struggling to enact cryptocurrency taxes and legislation to control such emerging currency. If you are not aware of these before you start trading, you may find yourself further down the line in a spot of costly bother.


Most governments are uncertain of hpw to define – as money or properties? – cryptocurrencies. In 2014, the U.S. adopted cryptocurrency exchange rules which would ensure digital currencies come under the property umbrella. Traders will then be listed as creditors, and will comply with specific reporting standards. Information can be found by moving to IRS Notice 2014-21.


Besides the likelihood of complicated reporting processes, new legislation will impact your tax obligations as well. The U.S., the ‘properties’ rule means that the earnings are now deemed to be capital gains tax (15%) rather than regular income tax (up to 25%). Crypto-currency tax requirements are different for each country, and many will adjust as they adapt to the changing market. Do your research before you start trading, and find out what sort of tax you are going to pay and how much.



If you already have a working plan, then it may be worth considering a crypto-currency trading robot. When you have your plan configured, the bot will get to work, executing trades automatically when the pre-determined conditions are met. It has two advantages.

Primarily, it will save you a considerable amount of time. You’re not going to have to look at the graphs all day, finding opportunities. Trade execution speeds should also be increased, because no manual input is needed.

Second, automated software helps you to transact at one time multiple currencies and properties. That means greater future income and all without having to do any heavy lifting.


That said, bots aren’t just smooth sailing. To prevent losing your earnings as a result of computer crashes and unpredictable market events, you will still have to track your bot to some degree.

They can be expensive, too. Although there are many choices such as BTC Robot offering free 60 day trials, you will normally be paying a monthly subscription fee cutting into your income. When you have to pay someone to program your bot, that can also be costly to set up. However, you’ll have to pay to upgrade your bot as the market shifts.

And while bots can help maximize your end-of-day income from cryptocurrencies, there are no free rides in existence and you need to be mindful of the risks involved. Maybe then, if you already have a proven and successful plan that can simply be automated, they are the best asset.


The most valuable lesson you will take on cryptocurrency trading is the one you will offer yourself, with a demo account. First of all, before you purchase, you will have the opportunity to check your future brokerage and platform.

Second, they are the ideal location for fixing errors and improving your art. You will normally trade simulated money, so errors won’t cost you your hard-earned cash. After you have trialed your plan and ironed out any creases, start using real money to conduct trades.

You can also find a number of courses for cryptocurrencies online, plus an selection of books and ebooks. The more knowledge you learn – the more you’ll be trained, and the greater the chance you’ll have of holding an advantage over the competition.

Key Points

Think of this as your day-to-day cryptocurrency trading guide and you’ll stop most of the obstacles that other traders are dropping at. Consider ease of use, protection and its fee structure when selecting your broker and platform. There are a range of approaches that you can use to transact cryptocurrency.Ensure important roles are played by technical analyzes and the news. Finally, keep an eye on national laws and tax disparities, you don’t want to risk income from unexpected regulations.