Nobody is unaware of the exponential growth in cryptocurrency trading in recent years. The increase in the price of the cryptocurrencies like bitcoins is a matter of attraction. If you want to join the bandwagon and follow the footsteps of Erik Finman or Jeremy Gardner, let us warn you.

Cryptocurrency trading might seem uncomplicated, but it involves more risk than you consider. This can make or break your game. You might end up losing everything in the trade if it does break your game.

Safe Trade Binary Options is here to help you learn about the types of crypto trading and their pros and cons so that you do not fall prey to the fantasies that the era of crypto trading offers.

Cryptocurrency Trading-how it operates

Crypto trading is a market that allows customers to trade cryptocurrencies with other assets or other goods and services. This transaction would cost 0.1% of your balance for every trade. This amount is charged for matching you with an appropriate trader.

You could store a cryptocurrency on a blockchain when you receive it. When it comes to transferring the cryptocurrency to other users, you might send it to their wallet which is transferred to their Blockchain through a process called mining. You can visit the safetradebinaryoptions.com to know details.

Types of cryptocurrencies and their pros and cons

Types of Trading
Crypto trading could either be

• Short term
• Long Term

Short term trading
In short-term trading, you can buy a crypto-only to keep it for a short duration. This form is advantageous when you expect the price to rise for a short time before it drops. A risk-averse individual with a sharp vision for price fluctuation may involve in short-term crypto trading.

Long Term Crypto Exchange
You can hold these sorts of cryptocurrencies for a long period. These are usually described using the term "HODL" which means "Hold on for dear life". A patient and risk lover would want to hold their cryptocurrencies for a long time in expectation of a higher return for the initial investment in the next few months or years. This type of crypto trading, unlike the short ones, does not need strict monitoring which means you can continue this trade besides other conventional jobs. Apart from that, you do not need to have a bigger initial investment.

Pros

1) All-day accessibility
You can trade 24 hours a day in the crypto market which allows instant accessibility.

2)Transparent and accountable
Crypto exchange can be viewed by anyone at any time on the blockchain which provides accountability and transparency.

3)Amplified Liquidity

Cryptocurrency CFDs can be made more liquid if done with IG.

Cons

1. Fluctuations in Cryptocurrency markets are hard to understand
Cryptocurrencies are high. The volatility emerges from the sudden price changes and short-term interest rates. The sudden price increase can bring benefits while price decline pushes other traders towards losses. Therefore, you might need time to analyze this market.

2. Offers no security
Cryptocurrency markets being decentralized offer huge risks in times of losses such as cheating or scamming. So, do not get into the trading because everyone else is doing it.

Conclusion

Crypto trading might need more analysis than it usually seems. You will face your share of losses in the beginning endeavors in the Cryptocurrency market. So, make affordable trades.

However, if you are willing to learn from your mistakes, you can make a profit. Also, know your trading types before you decide whether to invest in short-term long-term cryptocurrencies.

Lastly, crypto trading can be pretty risky which is why you would want to minimize a few by using a reliable platform for exchange. You are now ready to get deeper into the subject as you have learned about the types of crypto trading and their pros and cons. Happy trading!