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How To Trade Cryptocurrency: 10 Things Beginners Need To Know

Cryptocurrency coins

The past few years have seen explosive growth in the popularity of cryptocurrency. Bitcoin, Ethereum, and thousands of other digital currencies are all fighting for headlines as we continue to explore the many potential uses of the blockchain technology on which they are based. Blockchain's versatility has us excited for the future, but it's cryptocurrency's appeal as an investment opportunity that has us excited today. It seems that everywhere you turn there are stories of Bitcoin millionaires, and it has many of us wondering exactly how to trade cryptocurrency.

"I think that the future of currency is digital, and Bitcoin has a good shot at being the currency of the future." -Adam Draper

There has been a wide fluctuation in the prices of digital currencies in recent years, and where there's price fluctuation, there's money to be made. But it's not as simple as that, unfortunately, and many have lost money due to poor understanding of this volatile market. Potential investors should acknowledge that this is not the same as trading stocks or other assets, and there is quite a bit to learn for even seasoned economists. Here is a brief outline highlighting what you need to know before diving in.

What Is Cryptocurrency?

The answer to this question can become incredibly complicated very quickly, so we'll try to keep it simple. Basically, cryptocurrency is “digital money” that exists within a particular software platform. Like regular paper currency, it can be broken up into small units and transferred between two parties to pay for goods and services. Cryptocurrency uses encryption to secure these payments and prevent counterfeiting, with the added benefit of potentially allowing for anonymous transactions. All of this happens outside of the traditional central bank system.

Also, just like regular paper currency, digital currency has a limited supply. This means that as usage and demand rise and fall, the price of digital currency will rise and fall accordingly. As with foreign currencies, the price of cryptocurrency is often expressed using major world currencies like the Euro or U.S. dollar as a base (i.e. you might hear something like “Bitcoin is at $10,000” when the value of one Bitcoin is equivalent to $10,000 USD).

Bitcoin was the first cryptocurrency to gain international fame as a legitimate form of digital money, and thousands of other digital currencies have since emerged to stake their claim. Among these thousands, there's an incredible variety in terms of how they're intended to be used, and this variety makes it a fascinating space for investors. There are, for example, cryptocurrencies that are designed to be used in a specific geographic region or industry or to solve unique market inefficiencies. In this sense, traders can invest in the sectors and solutions they deem most relevant.

The Basics On How To Trade Cryptocurrency

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In some ways, trading cryptocurrencies is similar to trading stocks. Investors purchase and sell these digital currencies from various exchanges that are authorized to match buyers and sellers, like a much smaller version of the NASDAQ or New York Stock Exchange. Registered users can buy and sell various cryptocurrencies for one another in search of profits and charge a small fee for each transaction.

As with stocks, traders can think of these as either short or long-term investments. Once they learn how to trade cryptocurrency, day traders may take advantage of news announcements or chart configurations, while long-term holders can wait for desired market conditions before selling for profit.

To get started, first research the various online cryptocurrency exchanges to determine which suits your needs. This is perhaps the most important step while you're researching how to trade cryptocurrency. Some exchanges are limited to users in certain countries or have highly restrictive registration processes. Not all cryptocurrencies are available to trade on all exchanges, so make sure you choose an exchange that offers trading in those currencies that interest you.

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It's also important to note that only certain exchanges allow you to purchase cryptocurrency with standard fiat currency such as Euros or US dollars.


Many will require that you make an initial deposit in a base cryptocurrency such as Bitcoin or Ethereum to open your account and begin trading.

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While you're researching exchanges, be sure to read customer reviews from other users. This is still a new industry, and some exchanges have proven better than others when it comes to important issues like order compliance and customer service. Note that it can take up to several months for some exchanges to process your registration and actually open your account for trading.

Once you've registered with an exchange and have funds available to trade, it's time to log in and buy some digital currency. Each exchange is set up a little differently, but they all share similar features. There are charts and real-time prices for each cryptocurrency on offer, allowing you to do basic analysis and make trades when the price is right.

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After buying your digital currency, you can either leave it in your account on the exchange or move it to a separate “wallet”. There are many varieties of these, both on- and offline. You can think of this as an extra layer of security against hacking or online theft.

If you later wish to sell your cryptocurrency, log back in to the exchange where your currency is held, and follow its basic instructions for selling (it's usually nothing more than a few mouse clicks). You may sell it in exchange for other cryptocurrencies, and some exchanges allow you to sell it for fiat currency. If you moved your digital currency to a separate wallet, simply add the extra step of transferring it from your wallet back into your account on the exchange where you want to sell it. Sounds complicated, but it's actually quite simple once you've done it.

10 Things Beginners Need To Know

two bitcoins

Image by Miloslav Hamřík from Pixabay

1. It's Not a Walk in the Park

If you've never traded before, understand that it can be both exhilarating and stressful. There's nothing quite like it, and that could mean dealing with mental states you've never experienced before. It may sound elementary, but you should have a plan in place for effective stress management. Find out what works best for you and stick to it.

2. It's Risky

As you're learning how to trade cryptocurrency, keep in mind it's still a very young industry that's subject to volatility. Many have lost millions in digital currencies due to poor research and reckless decision-making. Do thorough research and, as with any investment, only invest what you can afford to lose.
bank notes and bitcoin

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3. Use Learning Resources

Before you invest, spend some time watching the price fluctuations of the specific currencies that interest you. Get to know how volatile they are, and note how they respond to different sorts of news and rumors. Websites like coinmarketcap.com are good resources for tracking prices in real time and even provide charts and other analysis tools.

4. Start with Other Currencies

Generally speaking, it's a good idea for beginners to focus on more established currencies such as Bitcoin, Ethereum, and Ripple. These will be less volatile than some of the newer currencies, which are far more sensitive to the slightest shift in market conditions. Be especially careful with these so-called altcoins as their prices can collapse with one false rumor. This is the last thing you want to worry about when you're first learning how to trade cryptocurrency.
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5. Develop a Formula

Develop a basic formula for analyzing different cryptocurrencies. As time goes on, you'll want to consider investing in other currencies. It makes sense to compile a checklist of factors to analyze with each one, just to ensure you're being financially rigorous.

6. Stay Up to Date

Find a good source of cryptocurrency news and follow it religiously. This is your money we're talking about, and you'll want to protect it by staying informed. Websites like coindesk.com offer in-depth coverage of all things crypto, from industry news to government regulation and profiles of new digital currency offerings.
bank notes bit coin

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7. Utilize Apps

Get on your smartphone and download a cryptocurrency price-tracking app such as Blockfolio. There are many such apps to choose from, and some trading exchanges offer this feature as well. Find your favorite one so you can always stay on top of your portfolio.

8. Learn about Orders

Familiarize yourself with market, limit, and stop orders. This should be one of your first steps in learning how to trade cryptocurrency as they prevent mistakes and impulsive last-minute decision making.
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9. Keep It Safe

Consider using a separate wallet to store your currency. Exchanges are getting better and more secure when it comes to holding currency in your account, but they are still subject to hacking and online theft. The Nano Ledger S is a popular hardware wallet option for storing cryptocurrency, much like a digital piggy bank that resembles a small USB drive.

10. Have an Exit Strategy

Have an exit strategy and stick to it. This means identifying the price at which you'll sell your investment and not changing your mind once it hits that price. This goes for both profit and loss, by the way. Don't get greedy if you've already made your profit and don't hold on to a losing investment out of desperation or hope.

Conclusion

chart cryptocurrency

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Learning how to trade cryptocurrency is a smart idea for any modern investor. Digital currencies are here to stay, and they will only grow in popularity as we find new ways to safely use them. Technology is improving minute by minute, and structural advancements will allow cryptocurrencies to be used in ways we can't currently conceive. This means there's a huge opportunity for investors who do their homework and invest wisely.

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Swing Trading Strategy Guide for Beginners

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Many of us want to own our own business or be our own boss one day. You may have even dreamed of being as successful as Warren Buffett. Swing trading is a trading strategy that has been used for years successfully, and if you learn the tricks of the trade, you, too, can have a piece of the pie. Now before you pay a so-called financial guru $2,000 a year for a list of which stocks to swing trade, learn the basics.

Keep reading to learn what swing trading is, the pros and cons of this method, tips for success and more. By the end of this article, you will have a good idea of whether swing trades are right for you and what you should look for when you start.

What Is Swing Trading?

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Swing trading is sometimes used as a method of day trading, but financial instruments may be held for five days or more to capitalize on larger price shifts than you could get with day trading. However, stocks are not held for more than three to four weeks. The idea is to minimize the risk of a market shift by getting in and out quickly.

Tips for Success


There are many strategies and types of analysis you can use when swing trading or engaging in any other trading or investments methods. Here are the five most important tips you need to succeed.

Follow the News

Find the Right Broker and Exchange

Keep a Journal

Never Stop Learning

Have a Year's Salary in the Bank

Benefits of Swing Trading

There are many benefits to swing trading. These include application, resources, tools and mindset. This trading method is ideal for many instruments and markets, especially altcoins. Maybe you think ethereum, litecoin or bitcoin are going to continue rising steadily for the next few days,, or maybe you are interested in taking advantage of the hype of an up-and-coming altcoin but don't want to risk holding it over the long-term. This works for currencies and other financial instruments very well, too.

  There are many benefits to swing trading. These include application,            resources, tools and mindset.

There is a wealth of information online to help you earn your piece of the pie. These include websites, tutorial classes, PDFs, apps, e-books and video training courses. You can find information specific to forex strategies or for trading in general. Learn how to spot patterns and which patterns to look for, and join a chat group for live help and advice.

From MetaTrader to Robinhood, there are many platforms you can use to swing trade using techniques, such as the candlestick method. You may also use EAs (expert advisor software) or automated bots to help you make more trades than you could manually. This is particularly useful when you are at work during market hours.

Characteristics of a Swing Trader

Risks of Swing Trading

Psychology of Swing Trading

Having a mental plan in place is the only way to become successful in swing trading. Here are three tips to get you in the right state of mind so you can achieve success.

Make and Stick to a Plan

Mitigate Risk to Fight Fear

This Is a Marathon

Conclusion

Swing trading is how many people make a living, but it is not without its risks. The best way to learn if it is for you is to start researching strategies, pick the best broker and exchange, create a plan, stick to it and note how each trade makes you feel. Never take losses personally. Never obsess over a trade. Learn your risk appetite, learn from your mistakes and never deviate from your plan. It is okay to change strategies, but as soon as you let your emotions drive your trading, you have lost. There is a very large pie for you to take a piece of. All you need is a steely resolve, an appetite for risk and a little start-up capital. Happy trading.

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10 Best Day Trading Stocks

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Day trading can be exciting and rewarding, but it also comes with its risks. You can reduce some risks associated with day trading by choosing the right stocks and setting and following ground rules when trading. A good day trading stock should have enough intra-day price movements and adequate trading volume for traders to get into and out of trading positions quickly. We have researched stocks that have enough volume and volatility to suit several trading styles. Explore our list of the best day trading stocks today.

The Best Day Trading Stocks: FAQ

1. What Is a Day Trading Stock?

2. Why Should I Day Trade Stocks?

3. How Do I Judge the Best Day Trading Stocks?

4. Where Can I Buy and Sell the Best Day Trading Stocks?

5. Is It Wise to Trade Indices, ETFs, Options, and Futures?

How We Reviewed

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The following products were reviewed based on the following parameters: volatility, daily trading volumes, the market capitalization of the company, and other costs associated with owning or trading the stock.

Overall Price Range of Day Trading Stocks

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The best day trading cost an average of $40  to $130 per stock.

The Best Day Trading Stocks: What We Reviewed

  • Bank of America (BAC)
  • S&P 500 VIX ST Futures ETN (VXX)
  • MSCI Emerging Markets ETF (EEM)
  • Apple (AAPL)
  • Intel (INTC)
  • AT&T (T)
  • Russell 2000 ETF (IWM)
  • Microsoft (MSFT)
  • General Electric (GE)
  • Ford (F)
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  • HISTORY
  • Price

This product can be found on NYSE, and it currently trades for about $25 per stock.

Pros

  • A high volume of over 300 million stocks traded daily
  • Very volatile

Cons

  • Hard to predict whether it will soar or rise, creating added risks
  • Trade by computer algorithms may make its price movements unpredictable
  • HISTORY
  • Price

The iPath S&P 500 VIX Short-Term Futures (NYSEARCA: VXX) is one of the most popular exchange-traded notes (ETNs). This ETN was made to provide traders access to equity market volatility. This ETN tracks the S&P 500 VIX Short-Term Futures Index, and it mirrors the volatility of the S&P 500 Index. The S&P VIX ST Futures ENT was launched in 2009 and has given an annualized return of -59.19 percent. Trading this ETN, however, comes with substantial risk and is normally affected by political, economic, regulatory, and judicial events.

Pros

  • Very volatile
  • More profit potential than trading the S&P 500.
  • High trading volume of 15-70 million shares per day means it is easy to buy and sell

Cons

  • Very unpredictable and risky
  • You don't get an underlying asset by buying ETNs
  • HISTORY
  • Price

The MSCI Emerging Markets is an international equity index that tracks stocks from 24 “emerging market” countries. Countries covered by the index include China (with a weight of 29.67 percent), South Korea (15.39 percent), and Taiwan (11.27 percent). Other countries this index covers include Brazil, Chile, Colombia, Greece, Czech Republic, Egypt, India, Hungary, Qatar, Russia, South Africa, Turkey, and the United Arab Emirates.

This index has 1,136 different constituents and covers about 85 percent of free float-adjusted market capitalization in each of the countries. Because of its international constitution, this ETF is affected by events in several countries making it a volatile stock to trade. Also, 110 million shares of this ETF can change hands in a day.

Pros

  • Low expense ratio for owning this ETF
  • High volume; usually over 50 million shares traded per day
  • Relatively low cost per share

Cons

  • Can be unpredictable
  • HISTORY
  • Price

Apple is the biggest company in the world by market capitalization. Its stock (AAPL) is one of the most popular day trading stocks. Over 30 million shares of this stock are bought or sold every day. The stock has had a steady upward growth in recent years. Apple's stock usually has the biggest price changes when the company is marking product launches or other announcements. This makes the stock suitable for “swing-traders.”

Pros

  • The stock is relatively predictable making it suitable for swing traders

Cons

  • The stock is expensive to buy
  • HISTORY
  • Price

Intel Corp is a designer, manufacturer, and seller of computer parts and technologies. The company also has several networking and data storage platforms. The company was founded by Robert N. Noyce and Gordon E. Moore in 1968 and has its headquarters in Santa Clara, California.

Although this company is not as dominant in the computer manufacturing industry as it was before, its stock is still one of the best day trading stocks. The stock has a price-to-earnings ratio of 12 compared to an average of 21 for stocks in the S&P 500 index. This means that the stock is relatively cheap and is tipped to continue soaring in the coming months. Experts also predict that Intel will continue buying back shares in the coming month and this may create additional opportunities for day traders.

Pros

  • Affordable
  • Very predictable
  • Moderate volatility

Cons

  • Lack of a permanent CEO may create risks for some day traders
  • HISTORY
  • Price

AT&T Inc. is a holding company of several telecommunication services companies with a market capitalization of $217 billion. About 45 million shares of this company, which is headquartered in Dallas Texas, exchange hands on a typical day. The company had its IPO back in 1984 and is listed on the NYSE.

The company's stock hit an all-time high in 1999 but underwent a downward spiral up to May 2003. The stock has been rallying and has easily outperformed the S&P 500 index in recent years. However, this trend has been reversed this year, and the AT&T stock has reached a six-year low in 2018. The stock is widely tipped to soar in the coming months

Day traders can use opportunities of international tariff and trade agreements, taxation policy announcements, competitor performance announcements, and periodic earning reports to profit from the stock.

Pros

  • High market capitalization means there are not liquidity problems
  • Low-cost trade

Cons

  • Relatively low volatility during times of economic uncertainty
  • HISTORY
  • Price

The Russell 2000 index is a measure of the performance for over 2,000 companies with a small market capitalization ($4 billion or less). The companies are listed on the Russell 3000 index. The iShares Russell 200 Index Fund (IWM) is actually a futures based on the Russell 2000 index. This ETF performs well when the U.S. dollar is strong and is also known to have a solid performance in the first quarter.

Pros

  • Tight spreads
  • Can use leverage to maximize profits
  • High liquidity

Cons

  • Trading volumes stop overnight

Microsoft (MSFT)

  • HISTORY
  • Price

Microsoft Corporation is the biggest software company on the entire earth, and about 33 million shares of its stock are traded on a daily basis. The company was founded by Bill Gates and Paul Allen in 1975, and it went public in 1986 with shares selling for $21. The shares have subsequently been split nine times. In 2000, the company's market capitalization reached $600 billion. However, as it was with most tech stocks, the Microsoft stock underwent a downward spiral in most of the 2000s. The company's stock has rallied again to hit another all-time peak in 2018.

The Microsoft stock has a long-term positive outlook, and you stand to benefit from the stock during its periodic earnings report announcements. You can also make money when the company is announcing new products or services, and when competitors are announcing their performance results.

Pros

  • Big market capitalization means there is enough liquidity
  • Relatively predictable

Cons

  • Buying the stock is relatively expensive
  • HISTORY
  • Price

GE is an American multinational corporation that is involved in several sectors although it is currently focusing on renewable energy, power, and aviation. The company, founded in 1892, has its headquarters in Fairfield, Connecticut. The company is the 26th biggest business regarding gross revenue according to Fortune magazine.

The performance of this company in the past 10 to 20 years has been largely negative leading to the GE stock being jettisoned from the Dow Jones Industrial Average. The company's shares recently hit a nine-year low, and the company has been downgraded by several financial rating agencies in previous years

Pros

  • High trading volume of about 31 million per day
  • The stock is one of the cheapest to buy

Cons

  • Uncertainty about the company's future creates a period of erratic stock performance
  • HISTORY
  • Price

Ford Motor Company is an American automaker and ranks 5th in the world regarding vehicle sales. The company is based in Dearborn near Detroit, Michigan. This company was founded by Henry Ford in 1903. Ford has come through several hard periods including the great depression and the 2008 financial crisis. The company's stock plummeted to a six-year low this year. Ford Motor Company Stock (F) currently trades about $9 at the New York Stock Exchange. Most experts believe the stock of Ford is grossly undervalued and they predict better days ahead for the company.

Pros

  • Can be volatile during some announcements

Cons

    • Can be unpredictable

The Verdict

Stock market chart

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We believe the Bank of America stock is one of the best day trading stocks. The stock never seems to stop soaring and falling and presents multiple opportunities of profiting throughout the day. The high trading volumes mean you will never face liquidity problems.

The stock's price of about $25 means it is affordable to most day traders. Apple and Microsoft stocks also present good opportunities for day trading. These stocks' high trading volumes, frequent product/service announcements by their holding companies, and big market capitalization make them some of the best day trading stocks currently. But their relatively high price means they are not affordable for day traders with little investment capital.

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How To Buy Ripple Cryptocurrency

Posted on 01 April 2019

a ripple coin over a wallet and US dollars

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Are you interested in investing or simply trading in XRP, but don't know how to buy Ripple cryptocurrency? Buying most cryptocurrencies, including Ripple, is actually fairly easy in theory, though there are a few things that you need to learn if you're new to the crypto game.

Trading in Ripple—or any cryptocurrency—requires a few extra steps and a basic understanding of how the payment system works. Before you dive in, it's a good idea to do some research about Ripple, that way you can make an informed decision and you're also less likely to get scammed. Only use exchanges that have a reputation for being legitimate markets, such as the ones listed below.

What Is Ripple Cryptocurrency?

Ripple, more than a cryptocurrency, is at its core a payment system. The currency for this payment system is XRP, and all of the transactions are recorded on a public ledger called the XRP Ledger. This severs a similar function to the blockchain in other cryptocurrencies, such as Bitcoin. It records all of the transactions performed in XRP and adds a layer of transparency.

Ripple has its origins way back in the early 2000's, when it started as Ripplepay, a payment technology that was envisioned to be a decentralized payment system that would allow the masses to take control of their currency. In 2012, the modern version of Ripple emerged as OpenCoin, and then it was re-branded several years later to Ripple.

Nowadays, it bears some similarity to other cryptocurrencies, but there are key differences that set it apart and make it a completely different technology. This affects how to buy Ripple cryptocurrency to some degree, though the process isn't too far removed from that of acquiring other altcoins.

How Does Ripple Cryptocurrency Differ From Other Investments?

cryptocurrency coins

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There are several things that make Ripple different from other investments, and even other cryptocurrencies. Ripple:

  • Is not mined
  • Does not technically use a blockchain
  • Works well with existing commercial banking infrastructure
  • Offers more privacy
  • Has faster transaction times than other cryptocurrencies

Ripple has quite a few advantages over its altcoin brethren. It was designed to be a cross-currency transaction system, which makes it work well as a medium for exchanging one coin for another. It offers much faster transactions than Bitcoin as well—usually only taking seconds to resolve—which makes it a much better tool for retail. This also creates less risk for short-term investors, for whom even just a few seconds of delay can make transactions unprofitable as the market fluctuates.

Because there is no mining involved, Ripple doesn't suffer from the electricity consumption problems that many cryptocurrencies have, and there's no arms race for better and better mining hardware. You could say that this makes XRP eco-friendly compared to Bitcoin.

In the long run, Ripple could end up being a more desirable and sustainable currency than Bitcoin for many people. With one of the largest market caps in the cryptocurrency sector, Ripple is well on its way to becoming a staple in any coin portfolio, and will likely only become more relevant over time. This is why it's worth investing your time in getting to know this coin and learning how to buy Ripple cryptocurrency from its designated exchanges.

Cryptocurrency Vs Other Investments

Besides these specific differences between Ripple and other cryptocurrencies, there are also huge differences between investing in cryptocurrencies in general and investing in more traditional avenues, such as stocks.

Cryptocurrency investment has some things in common with investing in the foreign exchange market, but the prices are usually more volatile. While this means that you could get lucky and make significant amounts of money in just a few weeks or even days, it also means that you could stand to lose a lot as well. You must also consider the fact that cryptocurrencies are not backed by governments, so they are subject to the whims of the market very directly.

Unlike stocks or foreign exchange, the world of cryptocurrency is something of a Wild West, and is only just starting to face regulation. As with any investment, consider the risk. Cryptocurrencies are a relatively new technology, and the strength of a given coin over the long run will ultimately be tied to popular adoption. Choose a coin that will see wide use for its intended purpose, instead of one that is simply a tool for speculation.

How To Buy Ripple Cryptocurrency

If you're wondering how to buy Ripple cryptocurrency (XRP), then you'll be happy to know that it's similar to buying other crypto coins. One major difference is that Ripple isn't as commonly available yet, and you may not be able to buy it on your favorite exchange. You will also typically buy Ripple by connecting to a “gateway,” which is a company that uses Ripple and will allow you to exchange fiat or cryptocurrency for XRP.

Getting A Ripple Wallet

Before all of that, you'll need to consider keeping a Ripple wallet. You could just store your coins at the exchange, but of course that's potentially risky. With a wallet of your own, you can store your coins offline and it makes your coins safer from hackers.

One of the important differences between a Ripple wallet and most other cryptocurrency wallets is that you actually have to pay 20 XRP to reserve your spot. Addresses are not free, which cuts down on spamming and inefficiency, but it does make a user think twice before creating one. Think carefully about the wallet software you choose and choose it only once, that way you don't have to keep paying the fee over and over.

Like most cryptocurrencies, you can choose between software wallets, hardware wallets, online wallets, paper wallets, and more. Just keep your private key secure.

How To Buy Ripple Cryptocurrency On Exchanges

bitcoin, ethereum, ripple coins

Image by Miloslav Hamřík from Pixabay 

At the moment, Ripple is not available on Coinbase. This is largely because Coinbase has raised its standards, and Ripple is currently being scrutinized by the US government. Until a decision is reached on a major court case concerning Ripple's legal status as a traded security, we'll have to settle for buying it on other coin exchanges.

Bitstamp

If you're not sure how to buy Ripple cryptocurrency and don't want to dive into anything complicated, then one of the easier ways is to sign up for Bitstamp and buy it there. The process is fairly simple:

  • Sign up for Bitstamp
  • Verify your account and identity
  • Deposit your funds
  • Order Ripple

GateHub

Gatehub is similar to Bitstamp, except that it allows you to perform the exchange with a wider variety of currencies. To buy Ripple on GateHub, you'll have to follow a similar protocol as you do with Bitstamp, but it's straightforward as well:

  • Sign up for GateHub
  • Verify your email address
  • Verify your identity
  • Choose a gateway and deposit your money
  • Go to the Exchange page and buy Ripple

Since you'll be able to use a few different alt coins to buy through GateHub, this is a good choice of exchange if you want flexibility. You can also trade your XRP easily for BTC, EUR, USD, or ETH.

Kraken

Just as with Bitstamp and GateHub, the first thing you need to do is sign up on the official website. One of the big differences, though, is that you will have to change your fiat currency into XBT (another name for BTC) before you can buy Ripple coins. If you already have your money in BTC/XBT, then you won't need to go through this extra step, of course.

  • Sign up for Kraken
  • Verify your account
  • Log in and buy XBT(BTC)
  • Use the XBT to buy XRP

Once you have your XRP, then you can store it at the exchange or in your wallet. Remember to keep all of your private keys in a safe place, written down on paper, but away from prying eyes.

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How To Buy Ripple Cryptocurrency Without Exposing Your Identity

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image via Pixabay

One of the things that almost all exchanges have in common is that you will have to verify your identity, especially if you're a US citizen. This is to cut down on money laundering and other financial crimes, but if you find it intrusive, then you can try to find a different way to acquire Ripple. Perhaps you can buy some in person or perform some kind of labor and ask to be paid in XRP.

In cases like these, you will have to have your own XRP wallet, since you won't be able to store them at an exchange. From there, you can use Ripple to buy other coins, buy goods and services, or hold it as an investment.

Conclusion

Ripple is a new, promising decentralized payment system that may prove to be faster and more secure than other cryptocurrencies. Since it is already used by some legitimate companies, such as American Express, it has seen mass adoption over the past couple of years and will probably continue to grow in the future. Since it's so flexible, once you know how to buy Ripple cryptocurrency, you can use it to buy other currencies for your portfolio as well. This makes it a potentially great investment for those who are looking to sink their teeth into the cryptocurrency market.

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Index Fund Vs ETF: 10 Things To Know

Posted on 15 March 2019

When you compare index fund vs ETFs, you realize that both track stock index value. ETFs and index funds are used in tracking markets outside of standard equity markets such as commodities, cryptocurrencies, and even precious metals. If you are new to investing, index funds and ETFs might be confusing since they are sometimes used interchangeably. The two terms are used interchangeably because they have similarities, but they are different.

ETF VS Index Funds

ETFs and index funds are popular as they incorporate simple to understand goals and use a straightforward approach to investing. They're both investment vehicles and investors typically buy shares of these funds instead of directly investing in the underlying asset or stock group. Even so, the two are different in terms of tax treatment, minimum investments, and other aspects like expense ratios, which affect their performance. So index fund vs ETSs, which is better to invest in? This article highlights what ETFs and index funds are and provides a succinct differentiation of the two while also pointing out some of the similarities.


What Is an Index Fund


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INDEX FUNDS

Index funds are like mutual funds that mirror market index's performance, such as S&P 500. They're treated as benchmark indices. They're different from mutual funds which are actively managed by managers who pick stocks to sell or buy based on stated goals. Unlike the actively managed mutual funds, an index fund works just like a market mirror or a smaller part of it: an index. Index funds do not need fund managers to make active decisions pertaining to how and where to invest. Index funds are considered specialized mutual funds that can be bought via. the mutual fund company or through an intermediary, such as a broker.

Vanguard started trading index funds in the mid-1970s with the Vanguard 500 Index Fund, designed to mirror the S&P 500. Most investors consider it to be one of the best mutual funds in the market.


What Is an ETF


ETF

An ETF can be traded just like stocks. This form of fund includes bonds, stocks, or any other assets representative of the investment goal, and investors can buy ETFs shares via. common retail brokerages, such as a discount online brokerage. The structure of ETFs provides easy access and liquidity as investors don't have to buy through mutual fund companies or intermediaries. However, investors should know highly specialized or thinly traded ETFs can be volatile and are also characterized by large spreads between the ask and bid prices.

Most ETFs are index funds that track an index such as NASDAQ and S&P 500, other exchanges, or subsets within the market. Highly specialized ETFs are increasingly becoming popular among investors such as energy, cryptocurrency, and gold. Essentially, if a market is new and hot, as an investor, you need to be on the lookout. An ETF provides an easy way for investors to gain fast exposure to new technological trends or markets that have moved as a result of legislative changes.

Most ETF markets have grown significantly into thousands of ETFs, and some are simple index funds while others serve the purpose of highly specialized goals such as tracking treasury bills, the volatility index (VIX), or even the mortgage market. ETFs are evolving and therefore, investors can anticipate the creation of ETFs for every specialized market.


Index Fund vs ETF: 10 Things You Need to Know


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what you need to know

1. Index Fund vs ETF: Do You Invest Directly In Stocks?

2. Index Fund vs ETF: Do They Track a Market or An Index?

3. Index Fund vs ETF: Expenses and Fees

4. Index Fund vs ETF: Taxes

5. Index Fund vs ETF: Minimum Investments

6. Index Fund vs ETF: Liquidity

7. Index Fund vs ETF: Advantages

8. Index Fund vs ETF: Disadvantages

9. Index Fund vs ETF: Purchasing Methods

10. Index Fund vs ETF: Which Provides Easier Control Over the Price?


Conclusion


Index funds are mutual funds that mimic market index performance such as S&P 500. An ETF can be traded just like stocks and includes bonds, stocks, or any other assets that are representative of the investment goal. When you buy stocks, you are buying a small fraction of ownership in a company. However, for ETFs and index funds, you are given an opportunity to invest more broadly. They are different in that the expense ratio for ETFs is lower compared to that of index funds.

An investor can access an ETF with a minimum of $1 but for index funds, you need a minimum investment of $500-$3,000 initially. ETFs and index funds allow you to diversify and offer tax benefits. Although ETFs accompany higher expense ratios compared to ETFs, they are typically cheaper compared to managed funds. They have a low risk compared to other asset classes by offering steady growth. Just like ETF funds, index funds have a limited exposure to capital gains. We hope that this article has adequately addressed what ETFs and index funds are, their differences and their similarities.

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