A Beginner’s Guide to Trade Cryptocurrency
As a beginner, you should have some idea about what it takes for cryptocurrency trading. In order to start trading cryptocurrency, you should own a cryptocurrency wallet and be on an exchange to carry your trade on.
For this, you need to fill a simple form and wait for your transaction to process after your details are verified by your selected exchange.
Next step is to invest in cryptocurrency i.e. buy/sell/ trade in cryptocurrency.
The investors can choose an exchange to purchase coins and wallet to store the coins.
You can also do it by means of an exchange broker wallet hybrid like Bitmex, GDAX, Coinbase which permits the clients to purchase/sell and store cryptocurrency.
Things you should know before beginning to trade cryptocurrency:
There are some points which you should before beginning cryptocurrency trading. Take a look below:
- A cryptocurrency exchange isn’t regular stock exchange part: Coinbase, Binance, Kraken, GDAX, Bitmex are not same as Wall Street and its exchanges.
- A novice may like to trade in cryptocurrency stocks: Apart from trading, buying and selling in legal currencies, you can also trade in Bitcoin and the base currency of the exchange you have chosen.
- The cryptocurrency market is highly volatile: You may make a fortune or lose everything in trading Bitcoin or another coin. Some of the options to trade wisely are hedging, mitigating risks and not going for long term investments in cryptocurrency.
- A beginner should choose a platform which has a good repute and offers genuine wallet and simple procedures.
- A beginner should only trade in prominent coins like BTC, ETH, XRP and LTC.
- Beginners shouldn’t go for marginal trading till the time they become an expert. You may end losing all your money in an instant.
- Make sure you set up 2-factor authentication to secure your account from getting hacked.
- You do not have to buy a whole sole coin. You can trade in fractions. Always begin with small amount to get a hang of the system first and then proceed wisely as you get to know the minutest details of it.
With these cryptocurrency trading points, you can easily trade well on any trading platform.