A cryptocurrency wallet is a location where you store encrypted passwords reflecting coin ownership. A cryptocurrency exchange is like a stock or foreign currency exchange where people can swap a cryptocurrency for another and fiat currencies like the dollar. The way you need a bank account and access to the stock exchange if you want to trade stocks, it is the same deal for cryptocurrencies. You need a wallet and a cryptocurrency exchange to trade in cryptocurrency.
Protect your Crypto-currency
Based on reviews from cryptocurrency platforms, you’ll need to have a wallet to secure your cryptocurrency. This wallet will save your private key and public address, which will allow you to store, submit, and receive cryptocurrencies.
How To Trade Cryptocurrency
1. Read charts
Easily the most daunting aspect of trading is all the graphs and lines you will see from all the exchanges. People do not even bother reading their graphs too often, so they buy or sell their crypto right away, following the advice of their peers. There is a ton of talk, the kind of crypto that you are in can decide the type of cryptocurrency, so you can trade the coin by watching your cryptographic chart to know when the price is increasing and dropping.
2. Cold Storage-Wallets for Hardware
Hardware wallets are physical computers, where your cryptocurrency can be kept. The most popular type of hardware wallets is the USB model advocated by the French firm Ledger. The reason hardware wallets have become so popular is that they give you cold wallet storage and security capabilities while making transactions straightforward and easy. It works around and negates cold wallets’ most significant drawback.
3. Cold Storage-Wallets of Paper
It could be argued that the paper wallets are the best place to store your cryptocurrency easily. The concept of a wallet on paper is straightforward. You set up an offline wallet by following a few basic directions, and then simply print out the private and public keys in a piece of paper. Also, the keys will be printed as a QR code that you can check to get access to your funds. Reading more about coinmerce, you can buy or sell any coin of your choice using this wallet. These coins include Bitcoin, Bitcoin Cash, Dash, and Litecoin.
4. Relative strength index
The Relative Strength Index or RSI tests the intensity and pace of price change in a market by contrasting a cryptocurrency’s current price to its past results. It works by determining the extent of recent gains to recent losses to decide whether crypto was over-bought or over-sold.
So, the formula looks:
(100/(1-RS)) RSI = 100 –
Now, fortunately, you do not have to try to calculate something, because the exchange will do it for you.
If the RSI for a coin reaches 70 or even passes 70, then the crypto in question is “overbought” or overvalued so that it can go down.
On the other hand, if RSI reaches 30, then the crypto is undervalued and is likely to increase in value quickly.
Although RSI is a useful indicator, the reality is that it is not resistant to false buying and false selling signals that can be generated either through a big rally or a significant drop in crypto price. Therefore RSI should be a tool you use to predict the future price of a coin along with other indicators.