Understand Cryptocurrency Trading: What is it, what are the risks,and how is it similar to gambling?
A C ryptocurrency is a form of digital currency used for transactions and investment purposes. The Indian government does not back it and it is not used for official purposes. Cryptocurrencies may be considered legal or illegal, depending upon the country's laws. What is Crypto Trading? Crypto trading is similar to share trading. Crypto trading is speculating on cryptocurrency price movements and buying and selling the underlying coins via an exchange such as coinbase , coindcx, WazirX, and others. Trading involves making a profit with the price action or momentum of price movement. Let's understand with the help of an example:- A crypto 'X' is at the price of $100, you buy trade at $100 and there are 10 in the lot. So, to execute this trade, you need to have $1000 in your account, but in trading, you have only to pay a margin, i.e. a part of the total contract value say 20% of trade value. So, you need only (20/100*1000) $200 to execute this trade. This trade is op...