Crypto trading might be intimidating at the beginning, especially if you are a beginner. Crypto trade had crawled up and became popular in the media even though it has been around since 2009 when the first cryptocurrency (Bitcoin) was released.
Billionaires and multi-millionaires who are popular in the world have not been left behind either. Like Elon Musk investing in crypto, the wealthiest people have influenced so many people to trust and end up venturing into crypto trading. This guide will help you start your crypto trading journey. It has been made possible due to the experts of the Bitcoin Trader trading platform.
What does crypto trading entail?
Cryptocurrencies were introduced as a means of exchange for buying goods and services. However, since cryptocurrencies are digital currencies, owners can exchange the cryptocurrency for another cryptocurrency or money. The exchange of crypto for money or other cryptocurrency is called crypto trade. The cryptocurrency market can sometimes be daunting for beginners due to the vast amount of terminologies and processes involved. Check out crypto definitions for traders that will help make sense of some of the most common cryptocurrency terms and wordages, better understand the market, and jump-start your crypto journey.
Before getting started in the crypto trade, you have to consider many things to have a fantastic trading experience.
Choosing the perfect cryptocurrency
Currently, the crypto market is buzzing with over 3000 cryptocurrencies. The first step as a trader is identifying your cryptocurrency of interest by looking at various factors such as utility, value, team involved and the tokenomics.
This might be a tough decision as all cryptocurrencies run under blockchain systems and are decentralized systems. Cryptocurrencies are volatile so picking the best thriving currency is almost impossible. All it is for you to look for a profitable trend and capitalize on it.
Now that you have understood what the crypto trade is, how do you get started? Crypto trade involves cryptocurrencies which means that you have to acquire some of them to get started.
Crypto mining is a process of verifying transactions, and in turn, a miner is rewarded with a new crypto coin. This process requires experts since it is a complex task of solving algorithms on a blockchain. Mining is also expensive since it consumes a lot of energy and requires expensive computers.
It is better to use crypto exchange marketplaces and exchange platforms since it is much easier to acquire cryptocurrencies.
- Exchange platforms
There are a vast number of platforms to choose from. These are marketplaces where sellers and buyers meet to buy their cryptos just like a regular market is. After spotting your interested platform, create an account.
Most platforms are free to register. The only cost that you might incur is trading fees. Some match buyers and sellers directly when it comes to platforms, whereas some search for buyers yourself.
Factors to consider before choosing a crypto platform
Despite the existence of a vast number of platforms, you have to consider some things. The following are some of the things that you might consider.
Different platforms specify the minimum amount you can have for you to trade with. Notably, some platforms like Robinhood do not charge trading fees to their traders. Despite some platforms giving their users free trading fees, some charge high fees.
If cost is a significant factor, choose a platform with low or zero trading fees, if possible, a platform with the least amount of capital to invest.
In the digital currency world, security is an issue that is given much priority. Cryptocurrencies are prone to hackers and scammers who always target traders or a platform’s currency.
There are endless cases of platforms losing their customers’ investments due to hacking, where some platforms lose up to millions of dollars.
With that in mind, look for a trading platform with enhanced security and a good security history or one with enhanced security.
- Region covered
Different platforms are supported in different countries. Some platforms are supported in different regions while not available in some countries.
Pick a platform that is available and supported in your country or region.
- Coins supported
As a trader, you might have an interest in a particular currency. Different platforms support different cryptocurrencies. Some support a few, while some are meant explicitly for Bitcoin or a few selected currencies.
With that in mind, make sure the platform that you trade with supports your currency of interest.
Choosing a crypto wallet
Now you know how to get cryptocurrencies you desire to trade with, you probably need a wallet. A crypto wallet is where you store your cryptocurrency.
After a successful trade, you will need to have a wallet to store them after a successful trade in case you are buying some cryptocurrency. However, some platforms will store your currency for you on their sites, but it’s wise to have a wallet of your own and transfer your cryptocurrencies there.
There are two types of crypto wallets.
Hardware wallets- These wallets are in the form of physical devices with USB or wireless connectivity that can be connected to a computer or mobile phone. However, this type of wallet is expensive and suitable for traders, mainly dealing with a huge number of cryptocurrencies.
Software wallets- These types of wallets are either desktop or mobile applications. These wallets can be accessed on computers or mobile phones. These wallets are cheaper since most are free to open an account.
Factors to consider when choosing a wallet
This guide will help you choose the most suitable crypto wallet. Before selecting a wallet of your preference, consider the following.
Cost is an issue when it comes to choosing a crypto wallet. If cost is a significant concern to you, you should opt for a software wallet that is free to register. Hardware wallets are too costly.
Before storing your cryptocurrencies, ensure that the wallet is safe and has enhanced security features. Having a secure wallet will protect hackers from accessing your holdings, making sure that your cryptocurrencies are safe. Choose a wallet that has a good reputation for the past years.
Crypto trading is volatile. That means that it is unpredictable that the rise and fall in cryptocurrency prices make it almost impossible to speculate how the market will trend.
It takes a lot of courage and strength to be successful. Always research and seek information from experienced traders who have deep knowledge in the market.
It is also a bonus tip to start trading with less capital and expand as you get to experience how crypto trading operates and the overall behavior of cryptocurrencies. As it’s said, the best way to learn is by doing something.