Unlike the conventional banking system, cryptocurrency is a decentralized digital currency where the owner has much more freedom over his assets.
Some people confuse crypto trading with crypto investing, but there is a stark difference between the two. Investing in crypto means you hold the coin long-term, whereas trading in crypto means keeping your eye on all the currencies and playing with them for instant profits.
The day-to-day fluctuations matter a great deal while trading so you must have a know-how of how to read the charts and keep-up with the latest crypto trends. Just like how you should have a know-how of online casinos at casino777.
The goal is to buy a coin at a low price and sell it for a higher price. The reward may be high, but the risk factor is also significant while crypto trading. The guide below will help you understand the steps of crypto trading so you don’t make mistakes that many beginners usually do.
1. Sign-up For any Crypto Exchange
The most common platform for crypto trading is Binance. There are several other platforms as well such as Coinbase, CoinDCX, Gemini and Kraken. You can explore all of these platforms and sign-up with the one you like the most.
All these platforms have their specific benefits, The most user-friendly mobile app is Crypto.com. Gemini is the most protected crypto exchange from any fraudulent activities. Kraken is widely used for its cheapest services. If you’re planning to trade in Bitcoin, Cash App is the best crypto trading platform.
All these exchanges are legit and you can choose any of these according to your likings.
2. Deposit Money Into Your Account
Once you have selected the crypto exchange, you have to fund your account by either using wire transfers or a debit card. Wire transfers are very cheap and convenient to integrate with your crypto account. Some crypto exchanges such as Gemini and Coinbase even allow free wire transfers.
3. Choose a Coin to Invest in
Now when you have money in your account, the next step is to decide which cryptocurrency to start with. There are more than 5000 coins in the crypto market and they are growing with every passing day. However, there are just a handful of these that are most popular such as Bitcoin and Ethereum.
These popular coins are usually used for crypto investing instead of crypto trading. Crypto trading is usually done by using other new, small coins that are expected to fluctuate much more than the old, stable coins. The risk factor is as high as the reward in many of these coins.
4. Begin Trading
Now that you have chosen the specific coin, it’s time to start the trading. As soon as you make desired profits, you need to sell the coin. Keep an eye on other cryptocurrencies for your next investment. Stay updated with cryptocurrencies and their latest trends to make the most of your investment.
You can also explore various trading strategies such as scalping, day trading, position trading and swing trading. The more you know about these strategies, the more systematic your crypto trading will be.
5. Store you Crypto
To access your funds at any time, you need to store your cryptocurrency in a digital wallet. There are two types of crypto wallets, namely software and hardware wallets. Even though both of these are safe, hardware wallets are recommended highly because of their elite security.