Best Crypto Trading Platforms available in Sierra Leone
Bitcoin is the first cryptocurrency and the top one dominating the Crypto scene, but many others have emerged willing to dethrone the king. In this article, we will introduce:
Sierra Leone's most popular cryptocurrencies,
How to open an account on a trading platform, and
Techniques for effective trading: Check out our 12 Tips to invest in Cryptocurrencies at the end of the article.
Crypto markets are open 24/7. By using the ascending blockchain technology, they carry out financial transactions independently, securely, and anonymously. Each crypto has a different use or purpose (The specifics of each particular crypto design can be found in the ICO, A.K.A. Initial Coin Offering), so before trading any of them, you should learn about the use it is trying to fulfil. If you are keen to start, go ahead and pick one of the top 4 platforms detailed above.
How to Invest in Cryptocurrencies from Sierra Leone in 5 steps
If you have already decided upon which cryptocurrency you will buy, but you are unsure of how to do it, the following is a summary with five steps:
Register with an App that offers Cryptocurrencies. These platforms are called Brokers, which are neither more nor less than intermediaries between buyers and sellers.
Open a Trading Account with the App that you have chosen. The process of opening an account is online and requires uploading a few personal documents through their App.
Once the account is open, you should deposit money. Depending on the platform, it will accept payments with credit cards or Bitcoin transfers.
Choose the right moment you want to buy the Crypto you will trade, then open the App, look for the Cryptocurrency, and click on "Buy".
Once the transaction is completed, the crypto asset will be displayed in your account's main view. You will be able to see the price and value variation of it.
Where to buy Cryptocurrencies in Sierra Leone?
There are two ways to buy Cryptocurrencies:
Acquire the real asset or
Invest in it through CFDs, which are financial derivatives.
The main difference between these options is that in the first case, the cryptocurrency ownership is effective, and in the second case, you do not own it. Still, you are instead using financial derivatives to speculate on the price variation in the short term. Before investing, you should analyse the differences between the available trading platforms, and choose the one that best fits your trading objective, by analysing the commissions and security that each one provides. As mentioned previously, the four options presented initially are potentially the best ones available to local investors.
PrimeXBT: Featured Bitcoin-Based Platform
PrimeXBT offers a robust trading system for both beginners and professional traders that demand highly reliable market data and performance. The entire infrastructure is designed to facilitate a high number of orders per second and extreme loads while offering ultra-fast order execution and low latency. Traders of all experience levels can easily create and customise layouts and widgets to best fit their trading style. We are proud to offer such innovative products and professional trading conditions to all our customers.
PrimeXBT allows Crypto Trading of various assets like Bitcoin, Ethereum, Ripple, Litecoin, and EOS. Following, there's a view of this trading App.
What is each Cryptocurrency used for?
Bitcoin's success paved the way for many other cryptocurrencies, although Bitcoin is still the first and largest digital currency.
Following, we brief the details of the so-called major Cryptos. In summary, the cryptocurrencies with the highest market capitalization globally are the following:
Bitcoin (BTC): The first and largest decentralized cryptocurrency. Bitcoin is the cryptocurrency that emerged first, it is the most traded and with the highest market capitalization. Its native unit of account serves to transfer value, so it is classified as a digital currency.
Ethereum (ETH): One of the smartest cryptocurrencies in terms of the blockchain technology it uses. Ether allows containing smart contracts between peers, based on blockchain technology, which means that any developer can create and publish distributed applications that perform P2P transactions.
Ripple (XRP): Designed as a P2P interbank transfer method, it is one of the Cryptos that arent based on Bitcoin. Ripple is a project based on free software that pursues developing a credit system based on the end-to-end paradigm. Each Ripple node functions as a local exchange platform, in such a way that the entire system forms a decentralized mutual bank. Several front-line banks have started using XRP to improve international currency transfers.
Bitcoin Cash (BCH): A “Hard Fork” or “Dismemberment” of Bitcoin. Bitcoin Cash increased Bitcoin Blocks from 1MB to 8MB, it aims to continue what its supporters consider Satoshi Nakamoto's original approach: to build a point digital cash system.
Litecoin (LTC): One of the first cryptocurrencies to use Scrypt as an algorithm. Litecoin is a Cryptocurrency supported by its P2P network, and an open-source software project published by an MIT (Massachusetts Institute of Technology) license, which provides an extra layer of credibility.
Cardano (ADA): Cardano is an open-source project with smart contract functionality. It seeks to run financial apps and provide users with greater flexibility than other blockchain protocols, through a layered architecture. Cardano seeks to achieve a "style of regulated computing that guarantees greater financial inclusion, providing free access to fair financial services for all."
NEO (NEO): It is an open-source blockchain platform founded in 2014 that deals with Smart Contracts.
IOTA (IOTA): Its objective is to safely allow the exchange of information and value in the Internet of Things.
Stellar (XLM): It is a decentralized open-source digital currency protocol for fiat money transfers that enables cross-border transactions between any currency pair.
EOS (EOS): EOS.IO is a blockchain protocol powered by the native EOS cryptocurrency. It emulates most of the attributes of a real computer, including hardware with computing resources evenly distributed among EOS crypto holders.
Tron (TRX): It was developed to be a free entertainment system and revolutionize digital gaming. Tron is not just a cryptocurrency, but a complete blockchain platform, which has its legal headquarters and it is regulated in Singapore.
Monero (XMR): It was created to improve previous cryptocurrency designs, focusing on security in the identity of users, hiding the identity of senders and receivers and the transaction amounts.
What is the minimum amount to buy and trade Cryptocurrencies?
Many people ask us about the minimum amount to invest in Cryptocurrencies, and the answer is that it does not require a large amount of capital to start. When you hear that the price of Bitcoin soars through the roof, many investors who do not know the world of cryptocurrencies believe that the minimum to invest is 1 Bitcoin: in other words, ~$ 20,000 to $27,000 is the amount required to start trading. That claim would be wrong: With Crypto platforms like PrimeXBT, you may buy a fraction of a Token, for example, 0.001 Bitcoins (a few Dollars).
How to Trade Cryptocurrencies? [12 Tips]
People who are successful in buying and selling Cryptocurrencies use many security measures to increase the probability of making a profit when trading. Most of these measures revolve around minimizing the trading platforms' commissions and operating expenses. However, other trading good practices are a mere matter of attitude, self-control, and common sense.
1. Use Stop Loss Orders
Rule # 1: Use Stop Loss orders. Rule # 2: Use Stop Loss orders. Rule # 3: Use Stop Loss orders. Rule 1 is the best recommendation that any Crypto investor can get, which means that you should limit the potential to lose money using this type of order.
2. Get started with the DEMO Platform
Use a DEMO platform, which is offered by most of the Online Brokers.
3. Learn about the Cryptocurrency you want to buy and trade, and how and why its price fluctuates
Understand trading transactions, learn, study, both in the basic concepts of Blockchain and Cryptocurrencies, in other words, do not start investing without knowing what you are about to invest in.
4. Analyze the price swings
Carry out your analysis. Some of your acquaintances will tell you about the amount of money they have made buying Bitcoins (or investing in any other financial instrument). If a trader made money once, it does not imply that they will repeat the past performance.
5. Develop your Investment Strategy
Make sure to outline a strategy before starting to trade Cryptocurrencies. For example, when will you open a buy order? When to close it? You should develop a scenario table, invest based on it, and, as the strategy gets tested against crude reality, adjust it.
6. Do not Run After the Money
It is important to make sure you do not close your trades early, staying put with your investment strategy is key. When investors let their emotions take over, usually traders make a profit or a loss that is only slightly higher than the costs per transaction. Trading frequently in this way, a method also known as scalping, will tend to lead to a loss of your total performance, unless it might be justified by the underlying dynamics of a specific market. At the opposite extreme, swing trading attempts to profit in a market over a period that ranges from one overnight hold to several weeks, which minimizes the number of times you pay the spread.
7. Leverage in Cryptocurrencies Should Work For You
Using a higher level of leverage allows the investor to invest more than the actual cash deposit. This is an interesting capacity that platforms like PrimeXBT provide, yet the investor must take it responsibly, because leverage multiplies profits, but also losses, and might result in the loss of the total balance of your account.
8. There will be 'Not so happy' days
When a person starts trading financial instruments, there will be days when making money will seem easy. The important thing is to keep in mind that there will be days when the investment strategy will not work, and you will lose. Therefore, it is necessary to maintain capital in the account capable of sustaining your trades over time.
9. Choose an App that explicitly charges you the transaction costs
Consider the expenses and costs of overnight financing, as well as the spread when choosing a provider. Some trading apps sing their praises about tight spreads, but they charge extremely high overnight financing commissions.
10. Choose a Trading App that offers you a qualitative execution
From an investing point of view, a poor trading execution is equivalent, economically, to an additional commission. If your trading app offers low commissions, but it cannot fill your order fast and securely, you should consider choosing another one.
11. Choose a trading style that reduces the costs you pay
No need to explain further, right?
12. Have discipline
When you want to carry out a trade, you must be clear on:
Why are you opening a position?
What level of profit do you expect to get? (be realistic)
When will you suffer losses if the price goes the other way (Remember Tip # 1)?