Before you can learn how to trade Stacks, you need to understand what it is and when and why you should trade Stacks.
What is Stacks?
Stacks is a network made up of smart contracts and decentralized applications. It is open-source and built on Bitcoin. Essentially, the goal of Stacks is to give people access to the full potential of Bitcoin by offering a programmable base layer.
When you build an application on Stacks, your app can leverage the security and other benefits of Bitcoin. This includes things like unstoppable domains, ownership of your data, and modularity.
If you want to trade Stacks, then you also need to know some key figures about the token STX. At the time of writing, one STX is worth $0.8954. There is a market cap of $1.03 billion and a fully diluted market cap of $1.629 billion. The total value locked is $340 million.
The circulating supply of STX is 1.15 billion, which is 63% of the max supply of 1.818 billion. The current total supply is 1.35 billion.
The following chart shows Stacks’ price history over time.
When talking about the STX coin, you should also be aware of Stacking. This is when you temporarily lock up your STX to support the Proof of Transfer consensus mechanism of the network. In exchange, you earn Bitcoin transferred by miners.
Why Should You Trade Stacks?
Becoming a Stacks crypto trader gives you access to a cryptocurrency with a great potential for growth. Stacks serves a practical purpose, and that practicality will likely contribute to future growth.
The fact that this cryptocurrency connects with Bitcoin via Proof of Transfer is another strong point. This means that Stacks is directly connected to the largest cryptocurrency by market cap and provides a new way to earn Bitcoin.
Stacks Trading vs Investing
The difference between trading and investing Stacks depends on how long you hold onto the cryptocurrency. The best way to trade Stacks for a profit is to only hold onto it for a short amount of time. This lets you take advantage of market fluctuations, and you can use your funds to buy more Stacks or another cryptocurrency, depending on which one is likely to do better at the given time.
If you hold your Stacks for longer, that would be investing. If you plan on investing in Stacks, it makes sense to lock your investment up by Stacking it to earn extra STX.
Investing in STX will typically give you a slow and steady increase in profit, while trading Stacks will give you the potential for larger earnings at a higher risk.
Trading
To provide an idea of the type of profit you can make from actively trading Stacks, consider that as of June 16, 2020, it was priced at $0.9385, an increase of $6.95%. Or consider that at the same time, the 24-hour high was $1.04 with a 24-hour low of $0.881. This is with a trading volume of $20.8 million, allowing for plenty of opportunities to buy and sell at the ideal points.
Investing
To get a better idea of how investing in a long-term trading strategy could bring a profit with Stacks, compare the price of $0.09877 on December 31, 2019, to the price of $0.4562 just over one year later, on January 1, 2021. Or consider the recent high of $2.7035 on April 13, 2021. Smart long-term investments could have potentially given you a return of more than 27 times your initial investment between December 2019 and April 2021.
Where to exchange Stacks
You will have to choose a strategy and decide where to exchange Stacks. Most people will opt to use an exchange or a broker. Some wallets also offer trading. Brokers are a very popular option among the best Stacks exchanges, as they tend to be more intuitive to use.
- Binance – the world’s number one international cryptocurrency exchange platform.
- OKCoin – one of the top crypto exchanges in the world, based in Beijing
- 7b – reliable and simple crypto broker app.
How to exchange Stacks using the 7b crypto broker app?
When you are ready to exchange Stacks, the 7b crypto broker app is the perfect option. You can do so with the following steps.
- Log into your 7b account. If you don’t already have one, you can create and verify your account within minutes.
- Make sure you have enough funds to buy your chosen quantity of Stacks. If not, deposit more.
- Use the search bar to find “Stacks” or “STX.”
- Complete the order form, specifying how much you want to buy or sell.
- Submit your order and note the confirmation screen.
FAQ
Is Stacks a good investment?
Stacks is likely to be a good investment, as it is built on Bitcoin and serves a practical purpose. However, no investment is guaranteed.
How do I invest in Stacks?
You can use 7b, the best app to trade Stacks, to invest in Stacks. You can buy it in minutes and then store it wherever you choose, for as long as you choose.
How to trade Stacks for beginners
Beginners will want to use the 7b app to trade Stacks. Make sure to do some basic market research first to decide when to buy and sell it.
How to buy Stacks cryptocurrency
You can easily buy Stacks by searching for it on the 7b broker app.
What is Stacks blockchain?
The Stacks blockchain is a programmable layer built on top of Bitcoin, allowing for smart contracts and apps.
