#BSCTradingTips Crypto trading: what you need to know

Cryptocurrencies are traded on decentralised markets, meaning they aren’t issued or supported by a central authority like a government – they’re run across a network of computers (called a blockchain). Due to the decentralised nature of cryptocurrency, they’re free from many of the political and economic concerns affecting traditional currencies.

However, this doesn’t mean cryptocurrencies are free from external factors. To the contrary, cryptocurrencies are unpredictable and are affected by factors like supply and demand, media presence, integration of e-commerce payment systems and key events.

These factors make it important that your cryptocurrency trading strategies not only focus on a way to navigate volatility, but to focus on diversification of your portfolio. Trading a wide variety of asset classes – including cryptocurrencies – allows you to diversify your portfolio. By solely trading one asset class or market, you are confining yourself to the conditions of one market out of thousands.

By diversifying the types of trades you make, you can hedge against the risk of a market moving against you, as well as gaining the benefits of positive movements