When delving into the crypto world that is a complex subject itself, it becomes essential to leave no stone unturned. There’s a number of intricacies of trading cryptocurrencies that come into play once getting to know how an exchange operates. Here’s a basic roadmap that ensures nothing is standing on your way to the crypto trading, not a single stone. What to keep in mind when choosing a crypto coin? There are several aspects that may help you to get to know any crypto coin better. In the whirling sea of crypto, the real lighthouses are rankings. They can tell a great deal about a coin and navigate your way though. At one can find rankings according to various factors. That’s how it would look with the market cap. CoinMarketCap Ultimately, the price and the trading volume are advised to look at both separately and together. Low price of a coin is not necessarily a positive sign to judge upon. Various scenarios may have caused it. Possibly, it can be reasoned by a relatively insufficient community trust or irrelevant project management and communication. Thus, low demand is created, which decreases the coin value. However, it has to be mentioned that this does not apply to all the coins in the market, so an initial research is always recommended. Next, consider what makes a coin different from the others. As an example, the so-called stablecoins are backed with real assets, be they money or metal, and therefore confront the volatility of the crypto market. Normally, stablecoins are put into three categories: fiat-collateralized, crypto-collateralized and metal-backed. Among those, rankings can be applied too and the consequent decisions are made. At in the “Market Overview” section we see that the top trading volume positions are taken by trading pairs for USDT that is Tether - a pioneer stablecoin backed by the value of the US dollar. Sure enough, it is crucial to choose an exchange to rely upon - that’s why our choice here is HitBTC. It’s proudly holding the title of an exchange with uncompromised security since 2013 that has never been hacked, while trading itself is operated with the best liquidity and the lowest fees (we’re talking about -0.01% for maker and 0.02% for taker). HitBTC A further research upon a coin’s background can be also beneficial to understand its market value. To ensure the right direction of your study, you may ask the following questions: Does a coin have an application or purpose? Does it have a forthright and active community behind it? What is the coin’s liquidity? In other words, how good is its ability to be converted into cash or other coins? What are the legal regulations concerning a coin in different countries? It is also enlightening and beneficial to use charts in order to monitor the market situation. For example, the following chart is created via . Trading View Choosing a trading pair. Trading pairs are renowned in the two different types of currency: crypto-to-crypto or a crypto-to-fiat currency. In order to enter the crypto trading market, you need to complete 2 steps: Step 1: Converting fiat to base cryptocurrency Step 2: Converting base currency to altcoins While base coin may differ a bit, there’s a few that seem to be always around and to withhold the top positions: Bitcoin, Ethereum, Litecoin, Dogecoin, USDT. They are marked by their own advantages and disadvantages, and most commonly the choice of the base coin is entirely a personal preference. When choosing a trading pair, it’s essential to evaluate all of the factors affecting your potential trade that we’ve talked about above. Surely, the first step is to ensure that an exchange actually allows to use the chosen currency by visiting the market listings. It is also essential to check the volume of the coin-pair you are interested in trading on. Crypto world is a fast changing world - the whirling sea as we named it earlier, in which even the seasoned players need to constantly update their knowledge and the navigation system to get through. Good luck and good research with it!
