How Safe is Cryptocurrency Trading?

Question

Every trading involves certain degree of risk. How risky is Cryptocurrency trading? Or How safe is it?

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Charlie Evans 4 months 1 Answer 68 views 0

Answer ( 1 )

  1. Here are four essential things investors must consider as you make your first cryptocurrency purchase and consider trading.

    Market Capitalization (or market cap) reflects the size of a company and the metric is calculated by taking the asset’s price and multiplying it by the total number of available shares.

    Higher Trading Volume means it will be easier to buy and sell the digital asset whereas low trading volume hints at a lack of liquidity and means a trader could struggle to buy the digital asset or have existing orders filled.

    A Stop-Loss order protects investors against a significant loss of funds by selling the asset at a predetermined price slightly below the purchasing price.

    Now that you’ve got your crypto investment the next crucial step is determining how and where to securely store it. While keeping your Bitcoin and any other cryptocurrency on your exchange is an option, the counterparty risk makes this method less secure and should be avoided if possible, particularly for significant amounts.

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