Trading cryptocurrency has never been more dominant than it is right now, but it has also passed a long time since the future of business has been this uncertain. The year 2020 came with a swing and changed a lot of things we knew as normal. As it is already September, the year is entering its final stages but that does mean that the “normal” we know and love is back.
Trading cryptocurrencies is generally thought to be a lucrative business. This is a way of exchanging, purchasing, and selling virtual currencies like Bitcoin, Ethereum, Litecoin, and dozens of other examples of this craze that has been growing for over a decade. In these uncertain times, everyone needs a little bit of good advice and help. This is why we decided to tell you what to look for while trading cryptocurrencies in 2020. Read on to find out more, and if you wish to educate yourself further, visit Good Crypto App which allows you to trade on any crypto exchange, from anywhere, anytime.
Current Cryptocurrency Market Size
The most recent studies came towards the end of 2019, and the information gathered is crucial to understand the business. For example, out of the total of more than 139 million crypto wallets, only 52.8 million or 38% are active. More than half of all cryptocurrency companies, 52% to be exact, work in two or more cryptocurrency sectors.
Furthermore, 84% of providers support more than one virtual coin, as the multi-coin practice has doubled since the year 2017. Finally, there has been a 164% growth in the number of employees between 2017 and 2018. On average, in this 1-year period, firms employed 20 people more. All of this data clearly shows how strong the business is and how many opportunities it offers.
What to Look For
Following is some of the most important advice on what to look for while trading cryptocurrency in 2020.
1. A Quality Exchange
Cryptocurrency exchanges are services that allow customers to do whatever they please with their balance. Apart from providing e-wallets to store the funds, these exchanges allow you to buy more cryptocurrencies, sell it, and trade it for other currencies, including traditional (fiat) ones. In order to properly do business, the exchange has to be top-tier and trustworthy. In addition, it has to be available in your region or else you will not be able to use it.
2. Exchange Rates
Tightly connected to exchanges are the rates at which they provide an exchange of cryptocurrencies. According to the market as well as their practices, exchanges may offer more or less for a certain digital currency. Doing some research is required so that you can prevent losing too much of your coins while exchanging and trading it.
Safety in any business is one of the most important things to consider. Exchanges that are worthy of your time and trust will have several different safety measures involved, including accounts and passwords involving your ID, frequent verifications, and top of the line internet security. Personal data and the funds of the customers have to be safe at all times, which is why the best exchanges go out of their way to protect them. Phone verification is one of the most common and most effective ways to stay protected.
4. Payment Options
When you want to trade cryptocurrency, you have to have multiple payment options available so that you can spend regular money while doing business. Credit and debit cards are a must here so skip an exchange if you cannot use your cards to finance your business. Alternative payment methods like bank transfers and internet payment options are popular too, so depending on your most favorite method, look for the best digital currency exchange and stick with it.
5. Value of the Coins
Obviously, when weighting your cryptocurrency trading options, you have to know how much each cryptocurrency is worth. You probably know already that Bitcoin is by far the most valuable of all currencies and that it has the largest worth. Right now, 1 BTC is worth more than $11,320. Investing in it makes the most sense because it is both the most popular and the most recognized of all cryptocurrencies. Ethereum is only worth $434 per coin, a lot less than BTC, and most others are even lower.
Despite the large differences in value between different currencies, it is a smart business idea to diversify your business and invest in more than one cryptocurrency. This move will give you a lot of options as you will cover more than one possible outcome. By investing in more currency, you can better navigate the market and the ever-changing value of each virtual currency you have. If one fails, several others are bound to rise. Therefore, you will have more options to choose from and more currencies to trade.
7. Cryptocurrency ATMs and Adoption
While doing all of the above, you should also explore your surroundings for the places that accept cryptocurrencies as payment. More and more merchants are willing to accept top virtual currencies in exchange for their services and products since they recognized their immense value. In addition, search for ATMs that are specifically made to deal with cryptocurrencies. They are sometimes referred to as BTMs since Bitcoin is the most famous one of all. These special machines work in similar ways to regular ATMs since they allow withdrawals and deposits, but they also allow trading and exchanging of cryptocurrencies away from your home.
Conclusion and Takeaways
In the year 2020, everything feels uncertain and treacherous which means we have to prepare as best as we can. If you follow this simple list before you decide to start trading cryptocurrencies, you will have much more success and overall great experience in the business. Take your time to carefully navigate through them and do an extended amount of research into everything you are interested in before you make a move. This will help you prevent you from making bad financial decisions and save you from losing your hard-earned money in the process!