All those in one way or another have some knowledge of Bitcoin, we start establish a portfolio of cryptocurrencies in order to have a faintly broader portfolio to invest and that is where we can link the cryptocurrency trading topic.
For those who do not know what this term means, the cryptocurrency trading is the study we can do of the different emerging markets, all this applying important techniques to be able to gain assets. Through cryptocurrency trading, we can see the real value of an asset and then start to make different purchases and sales that generate profits.
Cryptocurrency trading is done through an exchange that is nothing more than the exchange platform, since in trading we do not only make purchases and sales, but we can also offer others or ourselves the historical quote data.
Function of a cryptocurrency exchange platform
An exchange platform let you make different kinds of transactions with other people within the same group.
To be able to make a successful exchange, the first thing that both people must have is the handling of the same cryptocurrency, only then can you successfully carry out the purchase or sale of it.
If you don’t have an exchange, you can register to one who generates you confidence. After having completed the previous steps, it comes to part where you must make the transfer, for this you must have communication with the exchange with which you will spend your money from one wallet to the other.
When you complete this part you will have two options, withdraw the new cryptocurrency to a trust wallet or keep repeating point 5 again and again.
Normally the currency that has more pairs is Bitcoin, that is why many times we must use Bitcoin as a gateway to acquire another cryptocurrency, we must change Ether for Bitcoin and later Bitcoin by Nem.
The only problem of having to make two changes instead of one to be able to acquire a cryptocurrency is the costs, since the exchanges charge a fee (commission) for each change of cryptocurrencies we make.
Different trading exchange platforms
When trading with cryptocurrencies we can find 3 different ways, or a direct negotiation with another person, where the seller will set a price regardless of the value you have in the market. In this type of exchanges we must be sure of who we are trading with since we do not have the backing or the security of an Exchange, although as a result you can get better prices.
Trading through an Exchange such and as we have already explained or a negotiation through a cryptocurrency sales platform, said platform sets a price and is purchased directly without making any kind of negotiation.
This last option would be the most expensive way to get cryptocurrencies, since these platforms are always going to sell at a price higher than the market price to obtain a profit and in addition we have to add the fees they charge when we want to take out our cryptocurrencies from their platform.