HedgeTrade aims to revolutionise social trading using blockchain technology, but is the platform’s HEDG token a worthy investment?
Where to buy HedgeTrade coin
Read on to find out about HedgeTrade and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy HedgeTrade coins.
What is HedgeTrade?
HedgeTrade updates the social trading concept by making its expert traders accountable for their predictions. It does this by incentivising them. If their prediction proves to be correct, they’ll earn proceeds from users who purchased it, if it doesn’t, those users get a refund.
How does HedgeTrade work?
HedgeTrade uses a blueprint (essentially a specific prediction that’s been made by a user on a particular financial instrument) which is stored on the HedgeTrade system. The HedgeTrade Oracle (an automated system) evaluates each blueprint at the point of its expiry. Appropriate rewards are then distributed to the blueprint creators (predictors) and the blueprint purchasers.
Rewards and refunds are paid out in the form of HEDG tokens, which can be purchased in exchange for Bitcoin. Alternatively, it can be purchased from crypto exchanges.
How to buy HEDG online – step-by-step guide
Step 1. Open a suitable wallet
Before you buy HedgeTrade, you will need to find a reliable wallet. There are loads of HEDG-compatible wallets to choose from, so we’ve listed two of our favourites to narrow down your search:
- Ledger Nano X: One of the safest options for storing your HEDG tokens is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- MyEtherWallet: If you’re not looking to spend money on a wallet, web-based MyEtherWallet (MEW) is a great option.
Step 2. Find a HedgeTrade exchange
The next step to securing those HEDG funds is to find an exchange where you can actually buy HedgeTrade. Not many exchanges currently offer HEDG but there are a few, including:
- Bittrex: Boasting a slick, easy to navigate interface and speedy transaction times, this US-based exchange supports over 200 currencies and allows you to purchase HEDG using BTC. A Bittrex mobile app has recently been launched.
- HitBTC: If you want to buy your HEDG with Ether then head on over to HitBTC, where you’ll find an easy-to-use interface and multiple coin support.
Step 3. Withdraw your HEDG
It’s a good idea to withdraw your HEDG from the exchange as soon as you buy HedgeTrade tokens – it’s much safer to keep cryptocurrencies in a digital wallet than on an exchange.
How to trade HEDG – step-by-step guide
If you’re only interested in trading rather than buying HEDG, then there’s no need to set up a wallet as you’ll simply be predicting whether the price of HEDG will go up or down.
Step 1. Find a broker
Finding a HEDG broker is easy if you know where to find them and what you’re after. However, it’s well worth having a look around and doing some research before you commit to one as different crypto brokers will offer different perks and levels of support.
Step 2. Deposit money
Once you’ve chosen a HEDG broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on spreads and CFDs before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
In essence, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this, and use stop loss orders to mitigate risk.
- Early market performance going into 2020 has been pretty strong
- HedgeTrade has the potential to become a busy trading hub
- Platform could lower barrier of entry to trading
- Relies on HedgeTrade and blockchain-based social trading taking off
- Competitors likely to emerge