All That You Need To Know About Trading Cryptocurrency

All That You Need To Know About Trading Cryptocurrency

COVID-19 and cryptocurrency are the two most talked about things in the last two years. Originated in 2009 by Satoshi Nakamoto, Bitcoin was the first cryptocurrency to be mined. Since then, more than 8,000 cryptocurrencies have been launched with variable features and innovative benefits.

Decentralization, stability, and its inflation-resistant nature are the three most important reasons that justify why anyone should invest in cryptocurrency. To dive further here is an article that illustrates how to begin with, trading cryptocurrency.

  1. Research well

Research before investing is the rule. You would not like to invest your hard-earned money into something with half information. 

Read about the basics of cryptocurrency, its properties, and most importantly the dynamics of the crypto-verse. A cryptocurrency trading course from an ed-tech platform is an excellent way to commence this journey.

Bitcoins, altcoins, meme coins, and stable coins are several different types of cryptocurrencies that fluctuate in value. 

The prices of some coins vary due to an increase and decrease in the active number of circulating coins whereas others like meme coins are often affected by the pump and dump mechanism and Elliot’s Wave theory. Remember, Elon Musk’s tweet and the sudden escalation in DogeCoin’s market value, that’s the classic example of such deceitful schemes. 

  1. Choose a platform

The second step is to find a suitable cryptocurrency exchange platform. Select a platform that aligns with your motives, offers varieties of wallets, and an easy process to liquidate money. Currently, currency.com is one of the top-rated crypto exchange platforms with a leverage of 1:500.

Open a brokerage account on the selected platform. It is advisable to use a confidential email account to maintain privacy at all ends. Fill in the required information and complete the KYC process. Attach your bank account to the exchange account to add money to buy coins.

  1. Select a strategy

Before investing, identify the coins that offer stability in this volatile market. Day trading, scalping, range trading, high-frequency trading are some of the most advocated strategies. You may also opt for an automated trading strategy where trained bots guide you at every step with technical insights about the crypto market.

Utilizing trading signals is another method to identify the triggers of the market. These are tools that recommend profitable entry and exit points for executing a purchase or sale of the crypto coins. Some of the best crypto trading signals are eToro, Stoic Ai, Zingaly, and RoboForex. 

  1. Buy, sell or hold coins

Funding your crypto wallet and investing in a coin is the final step to trading cryptocurrency. Bitcoins, Ethereum, and DogeCoin are some of the most traded coins nowadays. However, some of the emergent coins also offer a promising future at a minimal buying price in their initial days.

Set your eyes on the trendlines and sell the coins when your profit expectations are reached. Hold your cryptocurrency in a software or hardware wallet, while securing your address and private keys. 

Conclusion

Cryptocurrency is an investing game. However, volatility will always be a drawback of this digital format of money. Therefore, it is advisable to stay behind the fence to avoid unanticipated financial losses.