Many investors like to trade cryptocurrency because it’s an extremely volatile asset. If you can time the market right, trading crypto can give you much higher returns than traditional investments.
Cryptocurrency traders often have one of two goals: to accumulate Bitcoin or make a profit in USD. In a crypto bull market, it’s pretty easy for your portfolio to increase in USD value, but it’s more challenging for Cryptocurrency value to increase. To track your portfolio’s Cryptocurrency value, you can trade altcoins against Bitcoin and White Bitcoin on exchanges.
By actively trading your cryptocurrency, you risk losing your crypto to the market. Since cryptocurrency prices are so volatile, it’s not uncommon for traders to lose money quickly trading cryptocurrencies. This is why so many crypto enthusiasts just HODL their Bitcoin.
Contents hide
1Cryptocurrency trading for beginners
2Sign up for a cryptocurrency exchange
3Fund your account
4Pick crypto to invest in
5Start trading
6Store your cryptocurrency
7Basics of cryptocurrency trading
Cryptocurrency trading for beginners
Many different approaches exist in terms of how to trade cryptocurrencies. In order to start trading cryptocurrencies, one first needs adequate knowledge of the subject. It is also critical to know the associated risks and the laws that may apply based on one’s jurisdiction and decisions should be made accordingly.
Sign up for a cryptocurrency exchange
You’ll need to open an account with a crypto exchange unless you already own cryptocurrency. The best crypto brokerages on the market include Coinbase, belpay, and Gemini. All three of these services have a straightforward user interface and a wide range of altcoins to pick from To open an account with a crypto brokerage, you’ll need to supply personally-identifying information just like you would with a stock brokerage. When creating an account, you’ll need to submit your address, date of birth, Social Security number (in the United States), and email address, among other things known as Know Your Customer (KYC) requirements.
Fund your account
You’ll need to connect your bank account once you’ve signed up with a crypto brokerage. Most cryptocurrency exchanges accept bank deposits via debit cards and wire transfers. Wire transfers are usually the most cost-effective way to fill your account and they’re accessible on Belpay and Gemini.
Pick crypto to invest in
The majority of cryptocurrency traders put their money into Bitcoin, White Bitcoin, and Ether. However, trading utilizing technical indicators is possible because these cryptocurrencies move more predictably than smaller altcoins.
Many cryptocurrency investors put a portion of their money into altcoins. Although riskier than large-market cap cryptos, small mid-market cap cryptos have more significant upside potential.
See Also: best penny stocks to buy now
Start trading
You might try automatic crypto trading with software if you’re looking for a crypto trading strategy. Cryptocurrency trading bots implement a process designed to provide you with the most significant returns possible based on your investment objectives.
You can make money rapidly, keep your coins, or diversify your portfolio with crypto automated trading, which can provide you with a conservative, neutral, or aggressive way. You might even explore trading cryptocurrency actively on some sites while automating trading on others.
Store your cryptocurrency
If you’re actively trading BTC, you’ll need to keep your funds on the exchange to access them. For example, you should purchase a Bitcoin wallet if you’re buying cryptocurrency to hold for the medium to long term. Software wallets and hardware wallets are two types of cryptocurrency wallets. Both are safe, but hardware wallets provide the most protection because they keep your cryptocurrency on a physical device that is not connected to the internet.
Basics of cryptocurrency trading
Cryptocurrency value is determined second-by-secondand day-by-day by a market that never sleeps. As an autonomous digital asset whose value is determined by an open market, Bitcoin presents unique challenges around volatility that most currencies do not face. Thus, it is important for newcomers to have some literacy of how crypto-asset markets work so that they can safely navigate the markets, even intermittently, and get the most value out of their participation in the crypto trade economy.
Cryptocurrency trading can range in scale and complexity from a simple transaction, such as cashing out to a fiat currency like the U.S dollar to using a variety of trading pairs to profitably ride the market in order to grow one’s investment portfolio. Of course, as a crypto trade increases in size and complexity, so does a trader’s risk exposure.
