Trading stocks and cryptocurrencies
Posted on: 10 August 2018 by Ariyan Roy
People do online trading for a number of reasons. For some, it is their only source of income and others do it as a passive source of income. Some people in the latter category try to test the waters and once they get comfortable, they dive deep and go full-time into the online trading profession. When you trade, you could trade either stocks, penny stocks, cryptocurrencies or forex. If you are interested in online stock trading, make sure that you open an account with trade brokers like TD Ameritrade, Fidelity or OptionsXpress. This is a very key step as online trading could be overwhelming, especially to beginners and if you trade through a legitimate broker, you are already being successful in the first step.
Let us go through some of the things which could be very handy to you in your online trading journey.
• Doing extensive research on online trading companies could be extremely beneficial in having good returns on your investment. Some things like the firm’s reputation, customer reviews or any potential red flags could help you a lot before making investment choices. But to our luck, many of the brokerage firms provide us with the tools which we could leverage to find out the above information. Wigmarkets.com
• Commissions are one factor that could substantially affect your profits. Most of the established brokerage firms charge you commissions for every trade and unless you are a seasoned campaigner, it would be good to start off with a broker who does not charge commissions or charge minimum. Cfdpremium.com
• There are some catches in terms of hidden costs that you need to be aware of. For example, some of the brokerage firms would expect you to maintain a minimum monthly balance in your account, else you will be charged a maintenance fee.
• If you are a beginner, it is recommended that you opt for a platform that is user-friendly to navigate as online trading is all about executing right tasks at right time. If for any reason, you are not able to navigate easily, then you might miss out on some profitable trades. It helps us to reduce the number of errors and concentrate more on the trading strategies.
• Last but not the least, it is always a good idea to browse around a variety of trading companies in order to maximize your return.
Even though there is much more to online stock trading, having a good understanding of the above concepts could help you in a lot of ways. As mentioned earlier, online trading could be even trading cryptocurrencies. They are a digital form of currencies that could be bought or sold just like stocks. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, Ripple, Litecoin and Dash among others. There are many exchanges that support a lot of digital currencies but it is always a good option to have accounts on multiple exchanges as not every exchange supports every cryptocurrency. Some of the most popular exchanges are Coinbase, Poloniex, and Bittrex.
Most of the cryptocurrencies are traded by converting them into bitcoin or Ethereum in almost all the platforms. In the last one year, this space has been getting a lot of attention from a lot of investors even though the market does not appear to be too bullish at the moment. You could purchase bitcoins using credit or debit cards on exchanges like Coinbase and then transfer those to exchanges using a wallet address. Once you have your bitcoins on the exchange, you could use them to trade for any other currencies that are supported on the platform. Once you make a profit, you could transfer back your bitcoins to Coinbase of Gemini exchanges and convert them into US dollars and transfer into your bank accounts.