KuCoin is a significant cryptocurrency exchange that allows users to buy, sell, and trade digital assets. The platform also enables margin, futures, and peer-to-peer (P2P) trading in addition to conventional trading choices. Users can also choose to stake or lend their bitcoin to gain rewards. KuCoin has cheap trading fees compared to some of its competitors, making it an appealing alternative.
What is crypto trading?
Cryptocurrency or crypto trading bot refers to speculating on cryptocurrency bitcoin price movements via a contract for difference (CFD) trading account or buying and selling the underlying coins via an exchange. CFD trading is a sort of derivative that allows you to wager on the price movements of Bitcoin (BTC) without owning the underlying currencies.
For example, if you feel the value of a cryptocurrency will rise, you can go long (purchase) or short (sell) if you believe the deal will decline. Both are leveraged instruments, implying that you only need a small deposit to have 100% exposure to the underlying market (margin trading crypto).
Beginner’s guide to cryptocurrency trading
There are various techniques in terms of how to trade cryptocurrencies. To begin trading cryptocurrencies, one must first thoroughly understand the subject. It’s also crucial to understand the hazards and legislation that may apply depending on one’s jurisdiction to make decisions accordingly.
Become a member of a cryptocurrency exchange
Unless you currently own bitcoin, you’ll need to register an account with a crypto exchange. Coinbase, eToro, and Gemini are among the best crypto brokerages available. All three sites have a simple user interface and many altcoins to choose from.
You’ll need to provide personal identifying information to open an account with a crypto brokerage, just as you would with a stock brokerage. When making an account, you’ll be asked to provide information such as your address, date of birth, Social Security number (if you live in the United States), and email address, as well as other Know Your Customer (KYC) requirements.
Keep your cryptocurrency safe.
You’ll need to keep your funds on the exchange to access them if you’re actively trading BTC. If you’re buying cryptocurrency to hold for the medium to long term, you should get a Bitcoin wallet.
There are two types of bitcoin wallets: software wallets and hardware wallets. Both are secure, but hardware wallets offer maximum safety because your cryptocurrency is stored on a physical device that is not linked to the internet.
A crypto trade’s structure
A buyer and a seller are involved in a cryptocurrency transaction. Someone is bound to benefit more than the other in a trade because there are two opposing sides – a purchase and a sale. As a result, trading is intrinsically a zero-sum game, with a winner and a loser. Knowing how the cryptocurrency markets work on a fundamental level will help you avoid potential losses and maximize potential gains.
When a buyer and seller agree on the price of bitcoin, the trade is completed (via an exchange), and the asset’s market value is established. Buyers, on the whole, place orders at lower prices than sellers. This is how an order book’s two sides are made.
Conclusion:
KuCoin is a cryptocurrency exchange based in the Seychelles that was founded in 2017. It has evolved to be one of the largest global exchanges by trading volume, with over 10 million members and a presence in more than 200 countries since its inception.
