Welcome back to our guide that focuses on providing you with the tools you need to get familiar with the world of crypto trading.
Exchanges are by far the most popular way of having fun with crypto*, and so this part of the site focuses on seriously preparing you for the classical and the unexpected, so you can get pleasure out of trading instead of constantly bumping into hurdles.
Notice we use the term “crypto” to mean all crypto-related technologies like blockchain and all the decentralized stuff general - and not just the frivolously regulated and highly volatile niche of cryptocurrencies.
For more advice on how you can make your experience with cryptocurrencies more secure by way of due diligence checks, information gathering, and cross-referencing reviews, take a look at https://revain.org/exchanges.
Revain is proud to be presenting colossal amounts of information that was painstakingly gathered and presented by our team - so you don't have to. We are constantly being updated, so take a look at the new version.
The reason we emphasize the difference between cryptocurrencies and crypto technologies is that there has long been a debate about whether Bitcoin will make it and whether the future will see an amazing dawn of new technology - or a return to the pre-Bitcoin era. The main argument here is volatility of Bitcoin’s price due to the fact, that it is not tied to any tangible assets. Many are saying it isn’t going to last.
While it's difficult to make any reasonable predictions (at this point that is as much of a speculation as anything else), the factual evidence is that there are many, many companies today that are using blockchain.
Bitcoin, in other words, may or may not survive, but blockchain almost certainly will. And since we’re talking high-risk enterprises, when it comes to trading crypto, there are a number а things to keep in mind. We’ll quote a short list for you here, and you can self-research more if the topic interests you (if you’re an accountant at Microsoft, Bing it, otherwise Google it):
- Always backup your data.
- Keep your PC secure with a password and regularly update it.
- Take a look at a variety of exchanges before you decide which one is best suited for you.
- Use cold storage.
- Use hardware (or maybe even subdermal) wallets if you’re into big-time trading.
- If you’ve got a paper wallet, split the keys into several parts.
- Only buy hardware wallets from established providers and avoid delivery.
- Always use 2FA.
- Background-research coins before you buy them.
- Read a lot.
- Go out in the sun and drink plenty of water (people are essentially plants with complicated emotions).
What to be aware of when you’re trading at OKEx
First of all, the simplicity of use. Often you find exchanges that aren’t intuitive enough for new users - or ones that simply have too many tools and tons of sections that aren’t explained. 4-year-old and still not penetrated by hackers (yet) OKEx is one of the most new-user-friendly exchanges around - and it offers quite a few coins that you won’t find anywhere else.
If you’ve read the previous article in the section, you already know the basics of what you need to know.
If you're not familiar with the previous article, we suggest you get to it, but if we’re so fascinating you literally can’t tear yourself away from this article, know that OKEx’s market cap at the time of writing is $883 188 405, it features a staggering (537) number of coins to choose from, there is a plethora of extra features, like this, and, as usual, there is no accountability whatsoever, if you've read the fine print:
“The risk of loss in trading or holding digital assets can be substantial. You should therefore carefully consider whether trading in digital assets or any levered or derivative digital assets is suitable for you in light of your financial condition.”
Even though usually there is a 30-day period during which warnings will be issued about coin disintegration, emails get lost and go into your Spam folder, and all sort of stuff happens, which is why it is even more important that you keep monitoring the news carefully and keep track of us at Revain. You'll find the reviews section below the projects and exchanges description.
One of our requirements will be, therefore, to warn you to always read the project documentation to the end.
One of the best ways of making money is finding new coins that potentially hold a lot of value and may rise in price dramatically. Although there is risk involved, and we caution you always to bear that in mind, altcoins usually don’t take very much investment - but they can rise given that they have good potential.
The trick, of course, is figuring out which ones do. OKEx is quite good for low-coaster altcoins, and so is Binance (and maybe give Bitfinex a shot too). We have actually gone through the process of researching altcoins in-depth in one of our previous articles in this section, so if you want to know more - look for our Easter Egg by going back a page. We will, however, describe the process again in brief here.
Emerging coins are great - for example, they turn up at Kucoin way before anyone catches a whiff of them, and some of them start appearing in the news, the price goes up - and then, well, you know the story. Although we so hope Silk Road is not getting involved this time, like it did with Bitcoins...hugs are the real drug...right?
In order to research new coins, you have to take a look at their stats on Coinmarketcap and see if they’ve been listed anywhere for being exceptional. Look for patterns that no-one else would have spotted. For example, Trendercoin just gained 53.43%. EPLUS Coin just fell -37.32%. What are you thinking is the future for these coins? Is it a short-term thing? One piece of data, of course, isn't enough, which is why we provide a variety of statistics on our site. So...keep looking.
Go onto the coin’s site and take a look at the team. If there are photos of the team on the site - a good sign! The usual rule is - the more developers, the better. You can research them and see who was involved with that before. Have they achieved anything noteworthy? For example, you may be noticing there are engineers from Google working here. Nice! And, accordingly, if you google the CEO and it turns out there’s an outstanding $5 000 000 court-ordered fine...not so nice.
These things happen, however, more than you think. If sociology is anything to go by, only 1 crime in 4 gets reported, 1 in 4 of those gets recorded, and 1 in 4 of those gets resolved. This means that 63 out of 64 crimes remain unsolved. Add to that the colossal amount of businesses that manufacture ICOs, companies, PR, and news on purpose - and decide for yourself how much of what you’re seeing is the truth and whether you should run analytics yourself.
When you have researched plenty of coins, you can make conclusions about whether that altcoin has a future. Buy it! If you’ve made an intelligent decision, you will soon see it turning up in the news and making you massive income.
Contact a professional
Even though it seems like an idea far out of reach for a “normal” person, analytics people and lawyers are people, too, and often you can find a company analytics who spend most of their day getting bored arranging stuff on their desk in perfect order and finding the best possible place for the rubbish basket. Ask them to help, and, as long as you give something back, they will be happy to help. Every once in a while though. Don’t overdo it (too much).
There are features at OKEx that aren’t immediately obvious but are nevertheless valuable. Take a look at Bitcoin futures trading. Do your preparation though, as there are liquidity concerns, or better yet, wait for us to release an article about it.
Oh, that pesky liquidity... Would you take a look at Voyager, by the way? This next-gen exchange promises the best execution in the business - and another row of features so astonishing we can hardly believe it. We would gladly check it out, but we’re so busy being awesome for you. Come back and let us know what you thought in the chat.
Keep track of the context
We have already said you can find the latest news from Revain in this section. You will find some stuff on regulations there, too. Crypto-regulations are still somewhat foggy, and they keep getting updated all the time. Make sure you stay in touch with the context, for example, SEC’s warning when it comes to trading at exchanges:
“Online trading platforms have become a popular way investors can buy and sell digital assets, including coins and tokens, offered and sold in so-called Initial Coin Offerings (“ICOs”). The platforms often claim to give investors the ability to quickly buy and sell digital assets. Many of these platforms bring buyers and sellers together in one place and offer investors access to automated systems that display priced orders, execute trades, and provide transaction data. A number of these platforms provide a mechanism for trading assets that meet the definition of a “security” under the federal securities laws. If a platform offers to trade digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration. The federal regulatory framework governing registered national securities exchanges and exempt markets is designed to protect investors and prevent fraudulent and manipulative trading practices.”
In our recollection, SEC also once sternly asked exchanges all over the world to get registered, to which they replied with vague interest, but nothing much has changed, so it seems a lot is going on in the world of legal requirements. Consider giving decentralized exchanges a shot, let us know if you want to chat, and stay safe.
We’ll see you in the next article, “Trading at OKEx Like A Pro” for a no-nonsense, teeth-gritting, squinty Mexican standoff against risk, corporate fraud, hackers, competition, slippage, and rising odds. Make sure you come prepared.