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Cryptocurrency Trading Simplified

Cryptocurrency trading is one of the most popular investment tools in 2021. Here we will discuss the important things you need to know about it. 

How to Start Trading Cryptocurrency

If you want to learn about cryptocurrency and cryptocurrency trading, you have hit the right spot. In this article, you will learn all about buying cryptocurrencies, tips to get started, and much more without the technical jargon.

What is Cryptocurrency?

Cryptocurrency is the digital online currency that is used to buy goods and services. There are many types of cryptocurrencies available online today, but they have one thing in common, they all operate on blockchain technology, which makes them decentralized. Decentralization allows users to be in control of their own finances and funds without interruptions from any intermediaries or third parties. It is fast, secure and more transparent than the traditional centralized systems. 

Some of the most famous cryptocurrencies are Bitcoin, Ethereum, Dogecoin, Ripple, etc. Let’s learn how you can buy Ethereum and other cryptocurrencies and trade them online to get maximum profit. 

How to Trade Cryptocurrencies?

Trading cryptocurrencies has become very beneficial for investors since the cryptocurrency market is a volatile industry. If you are able to time the market right, i.e., buying cryptocurrency when it’s at its lowest and selling it when the price is high, it is proven to be the main strategy to be on the top in the cryptocurrency market. 

The following are the steps to get started in cryptocurrency trading:

  1. Choose an Exchange:

Choosing a cryptocurrency exchange is the first and foremost step in buying cryptocurrency. To buy and trade cryptocurrencies, you need to have an account on a Cryptocurrency exchange where the coins are traded. There are several well-known cryptocurrency exchanges that offer incredible services to investors. Some of them are: 

  • Coinbase

  • Poloniex

  • CEX

  • Bittrex

  • Bitfinex

  • Binance

  • KuCoin

You should always choose an exchange based on your preferences (transaction fees, number of cryptos offered, etc.). Before choosing an exchange, make sure to check the authenticity, security, fee and other factors. All of the exchanges mentioned above may differ from each other in terms of service, so you should always do complete research. 

  1. Fund your Exchange Account:

When you are done choosing the best cryptocurrency exchange according to your own preference, you can easily make an account on that platform. It is as easy as creating a social media account. Once you make an account, you will need to connect your bank account in order to start buying cryptocurrency. Most cryptocurrency exchanges offer credit card and wire transfers too. 

  1. Pick your Favorite Cryptocurrency to Buy:

Now that you have funded your exchange account, you are all set to choose your crypto. You may purchase cryptocurrency using your credit card on the exchanges indicated above. You should be able to choose between several cryptocurrencies, such as Bitcoin and Ethereum. 

A single coin might be worth hundreds of thousands of dollars. Many exchanges allow you to purchase even a portion of a coin. Beginner investors and traders will find it cheaper. For each transaction you make, the exchange will charge a certain fee. Before deciding on an exchange, make sure to examine the transaction charges. 

  1. Choose A Wallet to Store Cryptocurrency:

To store your cryptocurrency, you need a wallet. A wallet is just like a physical wallet where you keep your money. Cryptocurrency wallets are software and hardware wallets. Both types of wallets are easy to use and are secure. Hardware wallets, however, provide better security as they store cryptocurrency such as Bitcoin, Ethereum, etc., on physical devices online. 

The wallet will hold all the cryptocurrency that you will buy. It is important to keep the private keys of the wallet safe. Do not share your private keys with anyone in any case. 

Tips to Trade Cryptocurrency Safely:

Cryptocurrency trading is full of risks and volatility. Hence, you always have to be extra cautious while buying or selling cryptocurrencies. Here are a few tips that will help you in making your trading experience safe. 

  1. Before starting cryptocurrency trading, devise a proper and proven trading strategy that will help your trading career. You can ask for help from a professional or an experienced investor.

  2. Do your own research before jumping in on cryptocurrency trading. You should know how to read the trading charts and should know your market. Researching about cryptocurrencies, cryptocurrency exchanges and market value is always good. 

  3. Never put in money that you can’t afford to lose. Remember, the cryptocurrency market is extremely volatile and success is not guaranteed. However, if you are sensible enough, you can get maximum benefits. 

  4. Portfolio management also plays a very vital role in cryptocurrency trading. Diversify your investments and put all of your eggs in different baskets. So that, if you lose something, you will still have something. 

  5. Do not let the fear of missing out get on your nerves. The cryptocurrency market has no place for people who are hasty and fearful. It requires patience and resistance.

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