Basics of Trading
Trading cryptos is simple. You buy one of many existing Cryptocurrencies that are offered by the exchanges. There are a number of exchanges that exist in the US and in other parts of the world. Before you think about where you want to open an account, here is what you need to consider.
The first thing is that you need to open an account. If you prefer, you can open an account in a location that is not going to impose a tax liability on you in any jurisdiction. So this deserves some study. This study material is not going to give you tax advice, but you should know that there are jurisdictions that will consider profits from Bitcoin trading to be taxable. If you look at it as a currency, and that it is not legal sovereign tender, then it is tempting to think that it is not taxable. This is wrong. Most tax jurisdictions do not differentiate the underlying asset when accounting for profit.
Exchanges
There are more than a hundred exchanges that you can get on to be able to trade the currencies that we talk about in this topic. We will stick to one hundred, and you can look at each one of them to see which ones you would like to pick. You should have at least 10 exchanges in your basket, and you should use the ones that allow you to keep your coins wherever you please and transfer to them only when your trades are open, find an exchange that is quick with withdrawals and an exchange that executes rapidly without the need for brokers. Brokers work against your interests because they cost more and they are unable to execute rapid trades. Here is a list of exchanges that you can evaluate:
1 Abucoins
2 ACX
3 AEX
4 AidosMarket
5 alcurEX
6 Allcoin
7 Altcoin Trader
8 Bancor Network
9 BarterDEX
10 BCEX
11 Bibox
12 BigONE
13 Binance
14 Bisq
15 Bit-Z
16 Bit2C
17 Bitbank
18 BitBay
19 Bitcoin Indonesia
20 BitcoinToYou
21 BitcoinTrade
22 Bitex
23 Bitfinex
24 BitFlip
25 bitFlyer
26 Bithumb
27 Bitinka
28 BitKonan
29 Bitlish
30 BitMarket
31 Bitmaszyna
32 Bitonic
33 Bits Blockchain
34 Bitsane
35 BitShares Asset Exchange
36 Bitso
37 Bitstamp
38 Bitstamp (Ripple Gateway)
39 Bittrex
40 Bittylicious
41 BL3P
42 Bleutrade
43 Braziliex
44 BTC Markets
45 BTC Trade UA
46 BTC-Alpha
47 BTCC
48 BtcTrade
49 BTCTurk
50 Burst Asset Exchange
51 BX Thailand
52 C-CEX
53 C-Patex
54 C2CX
55 CEX
56 ChaoEX
57 Cobinhood
58 Coinbe
59 Coinbene
60 CoinCorner
61 CoinEgg
62 CoinEx
63 CoinExchange
64 CoinFalcon
65 Coinfloor
66 Coingi
67 Coinhouse
68 Coinlink
69 CoinMate
70 Coinnest
71 Coinone
72 Coinrail
73 Coinrate
74 Coinroom
75 CoinsBank
76 Coinsecure
77 Coinsquare
78 Coinut
79 COSS
80 Counterparty DEX
81 CryptoBridge
82 CryptoDerivatives
83 CryptoMarket
84 Cryptomate
85 Cryptopia
86 Cryptox
87 DC-Ex
88 DDEX
89 Dgtmarket
90 DSX
91 ETHEXIndia
92 ExcambrioRex
93 Exchange
94 Exmo
95 Exrates
96 EXX
97 ezBtc
98 Fargobase
99 Fatbtc
100 Foxbit
101 FreiExchange
102 Gate
103 Gatecoin
104 Gatehub
105 GDAX
106 Gemini
107 GetBTC
108 GuldenTrader
109 Heat Wallet
110 HitBTC
111 Huobi
112 IDAX
113 IDEX
114 Independent Reserve
115 InfinityCoin Exchange
116 Iquant
117 ISX
118 itBit
119 Koineks
120 Koinex
121 Koinim
122 Korbit
123 Kraken
124 Kucoin
125 Kuna
126 LakeBTC
127 Lbank
128 LEOxChange
129 Liqui
130 LiteBit
131 Livecoin
132 LocalTrade
133 Luno
134 Lykke Exchange
135 Mercado Bitcoin
136 Mercatox
137 Mr
138 Negocie Coins
139 Neraex
140 NIX-E
141 Nocks
142 OasisDEX
143 OEX
144 OKCoin
145 OkCoin Intl
146 OKEx
147 Omni DEX
148 OpenLedger DEX
149 Ore
150 Paribu
151 Paymium
152 Poloniex
153 QBTC
154 Qryptos
155 QuadrigaCX
156 Quoine
157 Radar Relay
158 Rfinex
159 RightBTC
160 Rippex
161 Ripple China
162 RippleFox
163 Simex
164 SouthXchange
165 Stellar Decentralized Exchange
166 Stronghold
167 SurBTC
168 TCC Exchange
169 TDAX
170 The Rock Trading
171 Tidebit
172 Tidex
173 Token Store
174 TOPBTC
175 Trade By Trade
176 Trade Satoshi
177 TradeOgre
178 Tripe Dice Exchange
179 Tux Exchange
180 Upbit
181 Vebitcoin
182 VirtacoinWorld
183 Waves Decentralized Exchange
184 WEX
185 xBTCe
186 YoBit
187 Zaif
188 ZB
189 Zebpay
** Please note that these sites have not been vetted, and as such you need to do your own due diligence before using their services.
Market
If you want to trade cryptos actively, it is not a difficult process once you get your fundamental study and technical study internalized. There are few, if any, regulations on it that you need to abide by, and as long as you do not engage in fraud or theft, and you conduct yourself equitably, you won’t need to keep looking over your shoulder.
Remember that cryptos are not physical assets like shares of companies, or fiat currencies that have the legal sovereign banking system – and then further substantiated by other countries, and by the world’s banking institutions. Currencies have that, cryptos don’t. So that is the first risk that you need to keep way back in your mind. What’s the worst that can happen to cryptos? They could be outlawed around the world. The chance of that happening is low, but nonetheless it exists. In our case, that is a good thing because it adds to the push and pull of the market, creating opportunities to buy and sell. It is also one of the reasons you should not keep an open position overnight.
More importantly, unlike shares and currency, they are not physical assets that can be held and kept – cryptos are not physical in any form. These are conceptual assets, and as we advance as a society we will see that cryptos will end up being the most efficient currency in use. Imagine a time when we eventually reach space and have colonies – cryptos would be an ideal way to facilitate commerce.
The first thing you need to know is that the crypto market is not centrally regulated. That means there are no rules yet on what you can and can’t do, but there are limitations as to what is acceptable in the marketplace. You can trade manually, you can use program trading, and you can even use artificial intelligence.
There are no rules, and that makes it a very lucrative opportunity if you do three things. The first is make sure you understand the basics. Second, start small – the minimum trading size for a few exchanges is 0.001 BTC. You need to get the feel for how things happen, and that gets your confidence and experience up. The third is that you do not stop at plain vanilla trades. If you just want to get into it and trade one or two times a day with plain vanilla trades, then this is not something that you will succeed at in the way that you imagine. Bottom line: start small and crank it up.
Tradability
Bitcoin is not the only crypto out there that you can trade. And the USD is not the only fiat that you can trade that against. There are over 1000 cryptos in the market today and over 100 fiats that are worth trading. However, mastering all those pairings creates a nightmare. You should focus on just a few. The US Dollar, the Japanese Yen, and the Euro are your best fiats to be traded against cryptos. Among the cryptos, aside from Bitcoin, which is the obvious trading opportunity, there are eight alternatives you can choose from as follows: Ethereum, Litecoin, NEM, Dash, Ripple, Ethereum Classic, Monero, and Zcash
That gives you more than 50 possible trading pairs – USD v BTC, USD v ETH, USD v NEM, and so on. It may seem like a wide field to choose from, but let me tell you that, as a beginner, it is indeed too many. As a manual trader, it will be completely overwhelming for you to understand, track, and execute the entry and exits of each pair.
To effectively choose the pairing, you need to be intimately familiar with the nature of the individual currency and the nature of their pairing. To do this you need to observe and understand the critical factors of tradability and liquidity