Investing in cryptocurrency has gained more recognition, with various companies globally accepting it as a means of payment. Cryptocurrency is also highly volatile, and when traded right, can give you more returns than traditional investments. The following is a complete guide on how to start trading in cryptocurrency.
1. Select a platform to trade
The first step to trading in cryptocurrency is deciding which platform to use. There are various platforms in the market, so you need to conduct in-depth research before choosing an ideal platform to invest in. Some of the factors you should consider when choosing a trading platform include;
- The supported cryptocurrencies
- User reviews and testimonials
- Acceptable deposit methods
- The years active to determine credibility and stability
- Transaction fees
Be sure to determine the user-friendliness of the platform you select. Opt for mobile-friendly platforms that allow you to easily buy and sell crypto. Check out this blog post to learn more.
2. Create an account
After choosing a suitable cryptocurrency exchange platform, you should create an account to start trading. To create an account, you need to provide your crypto exchange platform with personal information such as name, address, social security number, date of birth, phone number, and email address. It is worth noting that you do not require funds to open an account.
3. Fund your account
Once you have created your cryptocurrency trading account with the brokerage of your choice and verified the information, the next step is to fund your account. Different crypto platforms allow diverse methods to deposit funds into your account, including bank transfers and wires, PayPal transactions, credit cards, and gift card funding, so you should choose a suitable deposit method.
4. Choose a cryptocurrency to invest in
You could invest in various cryptocurrencies, including Bitcoin, Ethereum, Binance coin, Tether, Dogecoin, Solana, Polkadot, Cardano, and Terra. To choose the best cryptocurrency, consider its market capitalization, total coins and the market supply, authenticity and security, and user reviews and testimonials.
5. Select a trading strategy
If you are looking to get more profits on your investments, you should consider taking advantage of the various available strategies that allow you to benefit from short-term fluctuations in the cryptocurrency market. Some of these strategies include:
a) Bot trading
Bot trading involves using automated software to purchase or sell cryptocurrencies when a predefined condition is met or at a preconfigured time to maximize profits. These bots are designed to reduce loss and risks while increasing profits.
Arbitrage involves purchasing cryptocurrency on a specific exchange platform and selling it on another platform immediately at a higher rate, increasing profits.
c) Range trading
Range trading involves identifying a specific period to purchase cryptocurrencies when they are selling at a lower price and selling when they are being bought at a higher price, maximizing profits,
6. Store cryptocurrency
Be sure to create a crypto wallet to store purchased coins. Since exchange platforms are vulnerable to hacking, a crypto wallet provides a secure way to hold your investments. Use google chrome, IOS, or Android for free software crypto wallets options.
Trading in cryptocurrency is an effective way to invest your money and generate huge profits. Familiarize yourself with the above guide to make cryptocurrency trading more straightforward.