Cryptocurrencies and blockchain technology are becoming more popular every day, but the sheer volume of information about the topic can be overwhelming for beginners. This post is a beginner’s guide to crypto trading that will break down all of the basics, so you better understand what it’s all about. Whether you’re just getting started or are an experienced trader, this post should help answer some questions.
Let’s get started.
What is crypto trading?
Crypto trading is the process of buying and selling cryptocurrencies. You can buy cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Ripple on exchanges like Coinbase and then sell them when their prices rise for a profit. Cryptocurrencies are digital assets that use cryptography to secure their transactions and control new units’ creation. Transactions are verified by network nodes through cryptography and recorded in a dispersed public ledger called a blockchain.
Cryptocurrencies are decentralized, not subject to government or financial institution control. This makes them attractive to investors who want to avoid centralized control over their money. News Spy is among the top trading platform that you should use.
Steps to start crypto trading
1. Choose a trading platform
There are many different trading platforms to choose from, but make sure the one you pick is reputable and has a good track record. Some popular platforms include Coinbase, Gemini, Bitstamp, and Kraken.
2. Choose a cryptocurrency
You will need to purchase one of the major cryptocurrencies such as Bitcoin, Ethereum, or Litecoin. These are what we refer to as ‘the big three.’ The next step is for you to transfer your coin from its original wallet into an exchange wallet so that it may be bought and sold on the platform. We recommend Coinbase because they have been around since 2011 and have had no issues with their service.
They also offer “Coinbase Pro” which has more features than regular Coinbase accounts but still can’t compete with other exchanges like Binance in terms of buying/selling options.
3. Create an account
You will be prompted for your name, contact information, the country where you live/work, as well as verification questions before being allowed to join most exchanges. If this is your first time joining any cryptocurrency-related page, I recommend choosing “Blockchain,” as it’s usually what they default to when signing up. That way, you don’t have to change it later if another option is provided.
4. Deposit funds
To get started with crypto trading, you will need to deposit funds into your trading account. Most exchanges accept various payment methods, including credit cards and bank transfers. Once your funds have been deposited, you can begin trading. Each exchange has its user interface, so be sure to familiarize yourself with the platform before making any trades.
5. Start trading
Now it’s time to start trading! Choose the cryptocurrency you want to trade and how you think its price will move. Place a buy or sell order. The price will automatically be entered into the trade box on your chart, and there’s a small fee every time you buy or sell cryptocurrency – but this is typically very low.
The Bottom Line
Crypto trading is a risky and exciting way to make money. It may not be for everyone, but it can pay off big if you know what you’re doing. If done right, your returns on investment (ROI) could surprise you – but even then, there’s no guarantee that the value of those coins will keep going up as more people get involved with crypto.