How to Trade Cryptocurrency
This is the point we have all been waiting for, where you can learn how to trade cryptocurrency step by step.
Opening an Account at a Cryptocurrency Brokerage
Now, if this is your first time ever trading, the chances are high that you have never made a cryptocurrency brokerage account in the past. As such, in order to really start buying, selling, or trading cryptocurrency, you’ll need to make an account.
There are plenty of solid options out there, so you will have to do your research as to which one works best for you. In any case, typically the best ones are the ones that have the largest communities out there.
Generally speaking, universally, in whichever cryptocurrency brokerage you decide to register in, you will need to provide it with personal identification information. Imagine this in a similar fashion that you would at a stock brokerage.
Some of the most common pieces of information that you will typically need to provide include your social security number, home address, date of birth, email address, things of that caliber. Generally, this is nothing too serious.
Funding Your Cryptocurrency Brokerage Account
Now comes the interesting part. How are you going to purchase cryptocurrencies at the exchange? The chances are high that, if this is your first time ever trading, you won’t have any cryptocurrencies to trade with, so you can purchase it with fiat currencies. Fiat currencies include the USD, EURO, or others that are backed by a government.
To use them, you will obviously need to connect to a bank account.
Many cryptocurrency brokerages out there will typically offer you the chances of funding with banks, debit cards, and wire transfers.
Now, keep in mind that the write transfers will end up being the cheapest option when it comes to funding your account, and in certain exchanges, it can even be free, so always keep this in mind before picking your starting option.
Picking a Cryptocurrency to Invest in
Now comes by far the most difficult step out of all of them, and this is picking the cryptocurrency to invest it, and inevitably trade with. Many of the most experienced cryptocurrency traders will allocate many of their funds in Bitcoin and Ethereum as these are the leading cryptocurrencies. This is due to the fact that these are the two largest cryptocurrencies and can generally be a lot more predictable than the smaller altcoins. Trading with technical indicators can be easier to do as a result.
Now, if you really get into it, and the chances are high that at one point you will get a bit more comfortable, you can allocate the portion of our capital into smaller altcoins. Even though smaller, to mid-ranged market cryptocurrencies are riskier when compared to larger-market cap cryptocurrencies, they do have a huge upside.
Now, you might be curious as to what this upside is, but if you have been following the cryptocurrency world at least at some point throughout its development you might have noticed that a few of them, a select few that truly shook the world, got up to 1000% higher in value in a matter of months, making this an attractive option for investors that can take the risk, and potentially even take a hit or two if things go south, which the chances are higher that they will.
This in essence is what makes cryptocurrency trading exciting, the risk and reward factor, and striving to get it all.
So now, let’s talk about strategy and the role it plays in trading Cryptocurrency…
