How you know you are a Cryptocurrency Trader?

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The nature of high volatility and trading volume has pushed investments in cryptocurrencies to an all-time high in recent months. These practices make this market the ideal place for short-term trading and it simply means higher risks.

Different from other markets

What makes the cryptocurrency market different from the other money markets is the way they are traded. While there are many facets to the stock exchange that still rely on manual operations, cryptos are fully digital. Trading bots, digital strategies and news are imperative to making your investments work when on the platform. Thus, it is common to see some form of crypto in an investor’s portfolio these days. When do you know that you are a crypto trader?

You know the Crypto brokers

You could tell the difference between a broker and a DAX (Digital Asset Exchange). In Malaysia, you know how they are regulated by the Securities Commission (SC) and what these entail. You know that eToro has got the lowest spreads and offers the most types of crypto to trade. On the other hand, you also know that trading on the likes of eToro, Coinbase and NordFX is not protected under Malaysian law. You do this at your own risk. Meanwhile, if you are the more old-school trader, you go with the SC-regulated DAXs like Tokenize and Luno.

You know your digital wallets

There are countless platforms out there that provide digital wallets. You have your own one because you want to own your cryptos. Luno is a good place to start although most other platforms offer their respective digital wallets. You use your wallet to trade cryptos whether through the exchanges or with P2P platforms like LocalBitcoins.com.

You know who Elon Musk is

At one point, Elon Musk was just the founder and CEO of Tesla Inc. to you. After the company announced that it purchased some US$1.5 billion of Bitcoin, it created waves and the price of BTC spiked. There were reports stating that it might start accepting BTC as payment and that would just be as revolutionary. If you are a BTC investor, this news would surely affect you because it means your crypto is now worth more.

You calculate much faster

Depending on which platform you trade your cryptos, there will always be fees involved. Every exchange will have a different commission structure and fees that they impose. You know the difference between exchange fees, trade fees and transfer fees among the different platforms. Some platforms charge you for using their service (software). Trade fees are imposed when you trade cryptos which involves taker and marker fees. Transfer fees involve deposits and withdrawals where there is a small fee charged when you withdraw or deposit funds into your wallet.

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