How to Trade Cryptocurrency: A Beginners Guide

Cryptocurrency has successfully attracted a lot of attention. Even kids these days would surprise you with their skills in trading cryptocurrency. It is significantly disrupting the financial sectors. Not only that, other major industries like information technology, health care, retail, tour and travel, and automotive are being disrupted by cryptocurrency. So it’s only natural that people would want to try their luck on cryptocurrency. But although it may seem like an exciting thing to do, trading cryptocurrency isn’t child’s play. 

With all that being said, in this article, we’ll talk about what cryptocurrency is and how to trade it properly. Our goal is to give you an extensive idea about cryptocurrency so that when you finish reading this article, you’re as knowledgeable as you need to be to trade cryptocurrency.

What is Cryptocurrency? 

Cryptocurrencies operate on blockchain technology, and that makes them decentralized. When cryptocurrencies decentralize financial exchanges, it is a lot more effective than traditional economic systems in many aspects. 

The first and largest cryptocurrency is Bitcoin, and it’s considered as the “digital gold.” The 2nd largest cryptocurrency is Ethereum. 

Steps You Can Follow to Trade Cryptocurrency 

Learning cryptocurrency trading is a vast process which needs both time and hard work. You need to have extensive knowledge about how the whole cryptocurrency trading thing works so you can make the proper decisions. As for beginners, here are some primary steps you need to consider taking to begin trading cryptocurrency. 

    

Step 1: Make a Crypto Brokerage Account

The very primary stuff you need as a beginner is to make a crypto brokerage account. It is identical to opening a stock brokerage account. Make sure you submit the needed information as instructed while doing so. Look for cryptocurrency exchanges. Some of the most prominent cryptocurrency exchanges are- 

-Binance  

-Coinbase  

-Kraken 

-CoinDCX 

-Gemini and many more. 

 

Step 2: Fund Your Account

After you’ve successfully created your crypto brokerage account, the first and unmistakable thing you should do is to fund your account. You can fund your account in two ways. You can use debit cards, and also you can try wire transfers. Wire transfer is one of the inexpensive ways to finance your crypto brokerage account. There are crypto exchanges like Coinbase and Gemini that allow you to use wire transfers for free.  

Step 3: Decide on a Cryptocurrency

There are various cryptocurrencies in the market you can choose from. But experts always appear to use bitcoin and Ethereum. These two cryptocurrencies are more predictable than other minor coins. And when you are trading cryptocurrencies, you need to have some predictive techniques. However, as the market is constantly growing, you also need to keep an eye on other cryptocurrencies that may or may not rise over time and investment.

Step 4: Choose your Strategy

Trading cryptocurrencies need strategic planning. There are many kinds of strategies that can be pursued, and picking up just the right trading strategy is a vital step you need to take sooner or later. You can earn high profits in cryptocurrency trading by utilizing the trading indicators with the correct technical calculation. 

With all that being said, deciding on the right strategy is a crucial part of cryptocurrency trading. A lot of things depend on it, including your profit or loss, so if you are a beginner, we’d recommend you to pursue a cryptocurrency trading course. 

Step 5: Secure Your Cryptocurrency 

As you create a cryptocurrency brokerage account and fund it, you should as well get your own digital wallet. You need to secure your cryptocurrency in a safe place and you need a digital wallet for that. 

There are two kinds of digital wallets. Cryptocurrency wallets come as software wallets and hardware wallets. Both wallets are secure but it is evident that hardware wallets offer the best security as they store your cryptocurrency on a physical device. Many investors use the hardware wallet named Ledger. It is a great hardware wallet brand that ensures the security of your crypto. 

If you choose to go for a software wallet, you can choose ZenGo. It is one of the best software wallets according to cryptocurrency traders. This mobile wallet uses 3-factor authentication to protect your digital assets. It offers better security in comparison to other software wallets on the market. However, there are more software wallets you can find on iOS, Google Chrome and Android that are free of cost.

We talked about the steps you need to take as a beginner to trade cryptocurrency in this article. You should be fully aware of the fact that you can either achieve profit or lose money while trading cryptocurrency. Detailed knowledge about cryptocurrency is very much needed if you’re a beginner in this area and we hope you find this article helpful and informative.

Read also: What is the best way to invest in currency?

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