If you thought cryptocurrency was a fad that was going away, you would be mistaken. Cryptocurrency trading is bigger than ever. Ethereum alone saw around one million transactions every day in 2020 alone.
The good news is that it’s not too late to get in on the action.
If you plan on trading crypto in the future, you’ll need to learn some things to get started. Read the beginners guide to purchase crypto below to learn everything you need to know.
Find a Cryptocurrency to Trade
The first step to buying crypto is to figure out what you want to buy. There are thousands of coins you can get started with. The question is, which ones are good buys?
If you want to play it safe, you can start with the top coins on the market. These coins are more established and have a lower chance of failing. If you want to take more risk, you can try trading lower market cap altcoins.
Pick a Trading Strategy
There isn’t one way to trade crypto. Depending on your goals, different strategies will appeal to you.
If you’re looking for short-term gains, you’ll want to trade often. This means buying low and selling high. You’ll need to monitor pricing charts to look for trends that tell you the best time to buy.
Your other trading option is long-term holds. Your goal is to gradually accumulate certain coins with the expectation that they’ll go up over time.
Pick a Crypto Exchange
Once you have a trading strategy and coins you want to buy, you’ll need to find somewhere to buy them. For most people, this place is a cryptocurrency exchange.
A crypto exchange is a 24/7 marketplace that lets you swap between different cryptocurrencies. You connect your bank account or credit card and deposit money. In some cases, you’ll need to verify your identity to comply with government regulations.
Once you verify your account and deposit money, you’re ready to start trading.
Use the exchange to navigate to the coin you want to buy to see the order book. You can see the current price and past price. Either buy now or wait until your desired coin reaches the price you want to buy.
Set Up a Crypto Wallet
The chances are good that you won’t always trade your crypto. From time to time, you’ll want to take a break and let your holdings grow on their own. The question is, do you trust a cryptocurrency exchange with your coins?
You don’t control your wallet when you have your funds in a crypto exchange. If you want true ownership of your coins, you’ll need to set up a cryptocurrency wallet. Once you do, transfer your coins to your wallet to safeguard your crypto.
Now You Know What Trading Crypto Takes
Investing in cryptocurrency is much different than any other form of investment. You’ll need to understand what trading crypto takes if you want to see success. Use the crypto investing guide above to get started the right way.
Once you build your cryptocurrency portfolio, it then makes sense to start diversifying to other investments. Check out the latest articles to learn how.