2024 How to play with cryptocurrency? How to trade cryptocurrencies?How do I get in and out of the bank?
As the cryptocurrency market grows, more and more traditional financial institutions are getting involved, and there are many publicly traded companies that hold cryptocurrencies, such as Tesla (NADQ:TSLA). Cryptocurrencies have already created a large number of billionaires, such as Zhao Changpeng, founder of the Binance exchange, and Vitalik Buterin, founder of Ether, to name a few of the early participants who have gone on to become billionaires. As a newbie, how do we get started in cryptocurrency?
Why cryptocurrency is better than traditional finance?
- simple structureWhile traditional financial products such as forex and gold usually involve some kind of handling fee, cryptocurrencies have a very low entry barrier and investors can start investing in cryptocurrencies with as little as a few tens of dollars. You might be thinking that cryptocurrencies also have Gas Fee (blockchain fees), but if you just look at the process of buying cryptocurrencies on an exchange, it's a lot less expensive than other traditional financial products.
- High PotentialThe product curve for cryptocurrencies is still at an early stage and has a lot of upside potential compared to stocks and gold, which have been accepted by the general public.
- timelinessThe cryptocurrency market operates 24 hours a day, and many enterprising investors see more opportunities to trade in the cryptocurrency market than in the stock market, which operates during fixed hours.
- large amplitudeMany investors with a low risk tolerance will not like products with high volatility because they can't afford to take too much risk, but for those with a high Risk Appetite, they will like the ups and downs of cryptocurrencies because there is a positive correlation between high volatility and the rate of return.
How to start trading cryptocurrencies?
We will first choose an exchange to make a "deposit", which means we will convert fiat currency (legal tender) such as Hong Kong dollars, US dollars, etc. into cryptocurrency.
When choosing an exchange, we must pay attention to two things: the first is its reputation; the second is its proof of reserves.
How can I tell if an exchange is reputable?
We can tell the popularity of an exchange by its total trading volume, and popularity is usually positively correlated with reputation. We can find this information on the well-known cryptocurrency market data platforms such as Coinmarketcap Find out which exchange is the largest. In general, the larger the exchange, the lower the risk of a Rug Pull.
Why is proof of reserves important?
A "Proof of Reserves" is a way for an exchange to prove that the funds it claims to have actually exist. This verification is important because it helps users maintain confidence in the safety of their assets and ensures that they can safely retrieve funds from the platform if needed.
How to "Deposit"?
The most common exchanges offer about 2 different methods of depositing funds, they are:
- Credit Card DepositMany exchanges have partnered with major third-party deposit and withdrawal platforms such as Moonpay to allow users to deposit funds using familiar methods such as their debit or credit cards, but the fees are of course quite high.
- C2C/P2PThis method is the most commonly used method, users can trade directly with other users/merchants on the platform, we first choose the payment method (usually Payme, Alipay, Moneybookers) and then choose the amount, then transfer the money to the other party's account, the other party will release cryptocurrency to your account. Users don't have to worry that the other party won't send you the coins after receiving the money, because the platform will protect both parties and provide mediation and collaboration when needed.
Crypto Currency Different Play
- Stable currency pledge (low risk)Users can pledge stable tokens such as USDT and USDC on the platform, and the platform will provide a good annualized percentage return (APY) as a reward. There are two types of pledges, coin lock and call, coin lock requires the user to lock the platform for a period of time, while call means the user can take away the pledged amount at any time.
- dealingsUsers can trade on a spot or leveraged basis to earn the difference in price.
- Airdrops for earning coinsUsers can participate early on in a number of test sites to earn project prizes in the form of their own tokens. Users can also pledge and participate in different interactions to win airdrops in different more affordable protocols.
How to catch the latest information on cryptocurrencies?
Cryptocurrencies often require investors to spend a lot of time absorbing the latest information in the market. A little inattention to missing some important information can lead to missed opportunities or even some big names, famous figures such as Elon Musk's sentence "We are starting to accept payment in cryptocurrencies" can lead to a big rise and fall in the market. So if you are slower than others in accepting cryptocurrency payments, you will miss the opportunity to "speculate".
As well as being a more current social software, Twitter is also a large information platform for cryptocurrencies. If you are new to cryptocurrencies and don't know how to start using it, you can go to some of the accounts of large organizations and hit follow, and then Twitter will show you some accounts that it thinks you would be interested in, which are usually good cryptocurrency bloggers. Alternatively, go to the tweets of well-known bloggers and see who they are following, then follow them.
Disclaimer
The content of this article is for reference only, investors should exercise independent judgment, invest prudently and at their own risk, this article does not provide or attempt to persuade the audience to do trading or investment basis, the content is for sharing purposes only, and should not be regarded as investment advice.It does not represent the views and position of Monsterblockhk.All information and opinions are current as of the date of the judgment. In addition, if a judgment is rendered on aIn this siteAny content related to virtual asset trading platforms that have not yet obtained a license to operate virtual asset trading platforms in Hong Kong, including but not limited to text introductions, pictures, offers, events, etc., are only available to users outside the Hong Kong Special Administrative Region.
According to the Hong Kong Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022, after June 1, 2023, all centralized virtual asset trading platforms operating in Hong Kong or actively promoting their services to Hong Kong investors will be licensed and regulated by the SFC, and any related unlicensed activities will be a criminal offence. For more information and details of the legislation, users may refer to the SFC website.