Cryptocurrency trading is one of the most used phrases in recent years. The cryptocurrency was first incepted in 2009 as a decentralized currency to change the existing methods of centralized financial transactions. Initially, it didn’t get any hype because the […]
Cryptocurrency trading is one of the most used phrases in recent years. The cryptocurrency was first incepted in 2009 as a decentralized currency to change the existing methods of centralized financial transactions. Initially, it didn’t get any hype because the idea seemed to be absurd to many, and investors were not interned in putting their money in some digital currency.
The initial investors who put a few hundred dollars in bitcoin are now millionaires as the worth of bitcoin is now over 42,000 USD. Cryptocurrency is seen as the most lucrative opportunity to make profits, but we can’t ignore the fact that thousands of people lost their hard-earned money in this industry.
Here are a few steps in starting crypto trading.
The first step in crypto trading is to make a broker’s account. Bitcoin brokers act as a bridge between traders and the financial trading markets. First, you register an account with a cryptocurrency broker that suits your need. You need to conduct extensive research on choosing reliable brokers and cryptocurrency exchanges as there are plenty of them in the markets. And it is hard to distinguish which one is credible.
After the registration, the 2nd step is to fund the account that you open with a cryptocurrency brokerage firm. Reliable brokers offer you multiple ways to deposit funds, like wire transfers, credit cards, debit cards along with PayPal and Skrill, etc. Always go for basic account options if you are new as the initial investment limit is less too.
After registration, select the cryptocurrency you want to invest in. that is the most crucial step as an asset is everything in online trading. Most people go for renowned cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc., as they are afraid of scams like rug pull that usually happen in anonymous cryptocurrencies. Keep in mind the volatility of the market and before making an investment analyze the factors that cause the price fluctuations.
The next step is to choose the crypto trading strategies. Most brokers provide educational assistance to their customers, don’t forget to go through these resources as they will help you a lot in making trading decisions. If you are new to cryptocurrency and have previous experience as a stock trader, then trading cryptocurrency will be easy for you as the strategies are more or less the same. You need to understand the fear and greed index of the market and beware of FOMO, the fear of missing out.
Automated or algo trading is a better way to jump into crypto trading. The prices of digital currencies change quickly and you need to keep pace with them. You can’t be online all the time, so you need to put instructions and your broker account will act accordingly so you can’t miss opportunities of making money.
Holding or storing cryptocurrencies is the next step. When you make an account, and buy some cryptocurrencies, now you need a wallet to store your currencies. It could be a hot wallet or a cold wallet. Hot wallets are digital wallets and can be attacked by hackers as they are operated online. Cold or physical wallets are recommended as they are more secure. Your private key is employed to conduct financial transactions, so it is important to remember it.
How to make profits?
The cryptocurrency market is volatile. Prices go up and down in a matter of minutes. If you want to be a successful cryptocurrency trader, you need to analyze the price charts, movements, trends, and market conditions. After some time in the market, you will be able to make predictions about the price fluctuations and make profits out of the price differences. The other ways to make a profit are crypto staking, mining, and proper usage of airdrops.
The cryptocurrency market is volatile and highly rewarding, you just need to be efficient with your research as it will help you to become a successful trader over time. Please don’t just jump into the industry as everyone is going into it. Conduct your studies and get inside out before stepping in.