If you plan on crypto trading in Pakistan these are the 5 must-know things.
The sudden emergence of crypto currency has taken everyone by surprise. It is not only a digital currency but is also a very easy way of earning quick money. However, in developing countries, such as Pakistan, people need to be educated about crypto trading before they can jump on the bandwagon or one could end up losing all their savings and also take a look at Top 10 Ways To Cut Living Costs
1. What is Crypto Currency?
Crypto is basically a digital currency with no physical assets involved. It is not standardized by any authority therefore its value can be very unstable depending on the demand and supply theory of economics. The first ever crypto currency to exist is the Bitcoin. As of today, there are more than 4,000 different crypto currencies which clearly indicates how much popularity crypto has gained within no time at all.
2. What is Crypto Trading?
Just like you trade goods for money in your everyday lives, in crypto you trade one currency for another. To be able to trade, you need to download any crypto exchange application such as Binance on your phone. Next thing, transfer money from your bank account to Binance and buy some USDT’s; the most stable crypto currency which is used to buy any other currency you are willing to invest in.
3. How to earn from Crypto Trading?
To answer this question, you need to have a deeper understanding of the bigger picture. You need to learn to analyze the market patterns using different indicators; candlesticks being one of the most important ones. This helps you predict whether the value of a specific coin will appreciate or not. If its value is likely to increase, you can buy that coin and wait for the appreciation before you sell it and earn the profit. Trading View is a good website which you can use to analyze and predict market patterns. However, predictions are not always correct which means you could always end up on the losing side too. To avoid losing money, you might have to wait for a longer time period till the value finally appreciates.
4. How many types of Crypto Tradings are there?
Depending on the duration of time for which you want to invest, crypto trading can be divided into several types. Short term investments, also called scalping, usually last for minutes or some hours at the most. You sit in front of a screen and sell your coin as soon as the price increases. Profit margin in this case is small but is better than incurring a loss or earning nothing at all. Mid term investments can last for a few months. Here, not only is the initial investment bigger but so is the profit earned. Lastly, long term investments range from one to several years. These have the least chance of loss because of the increasing popularity and value of crypto currencies.
5. Is Crypto Trading Halaal or Haraam?
Now the first question that pops up in almost every mind when they see the word crypto is whether all this is halaal or haraam. As this currency is not standardized, therefore the loss of profit for one person becomes profit for another. In easier words, someone sitting in some corner of this world has lost what you earned. Some may think this is ethically wrong but others may argue that the person, who lost, knew the risk involved before investing. So the answer for halaal or haraam varies from person to person depending on where they draw a line between being ethical and unethical. Another important factor for deciding between haraam and halaal is the origin of the crypto currency you plan to invest in. Since different currencies are owned by different people, make sure you know how and where the origin of the currency you plan to invest in lies. If some night club, tavern or casino owner owns a specific currency, it is quite obvious for it to be considered haraam then.
If you plan to invest in crypto and earn, make sure you learn the basics from some good Youtube channel. Also you need to practice analysing the market for at least a week before investing. Don’t forget this can be a rollercoaster ride so only invest what you can afford to lose. Make sure you buy at the dip and HOLD! Safe Trading!