By now you must know what cryptocurrencies are.
Over the last few years, especially with the unveiling of Bitcoin, the popularity of cryptocurrencies shot above the roof.
Cryptocurrencies refer to those digital currencies derived by solving the problems and blocks appearing the blockchain.
Every cryptocurrency has a value attached to it in dollars. Right from a minimum of less than a dollar to a thousand dollars, the price range is flexible.
When we talk about cryptocurrency, the first name that comes to our mind is Bitcoin. Nevertheless, there are numerous other currencies beside bitcoin that helps in garnering wealth to cherish.
Numerous people started investing their money into this sector and started gaining handsome profits. Here comes the need for knowing the intricacies of crypto trading.
Before we delve deep into knowing the ways and procedures of crypto trading, you must understand what it is!
What is Cryptocurrency Trading?
Cryptocurrency trading refers to taking a financial stand in the direction of individual cryptocurrencies with the dollar, other country’s currencies or some other crypto coin.
The exchange of the coins and currencies or coins and coins refers to crypto trading and often results in a profit for the trader.
One of the popular way of cryptocurrency trading is CFDs i.e. Contracts for difference as they facilitate greater flexibility while trading, taking short-term or long-term positions and utilising all the available leverages.
Provided the growth continues like this, the experts predict the cryptocurrency market to be 1087.7 million dollars by 2026.
The 2021 user index of cryptocurrency revealed that 97% of the users had complete faith in their cryptocurrencies.
The Growing Popularity of Cryptocurrencies
The digital coins created by the Blockchain or the so-called peer-to-peer technology rose to immense popularity over the years. Ever since Bitcoin and its volatile growth got exposed to the people, crypto trading has become a regular deed.
People formulated various crypto trading strategies to ensure that they do it the right way. Mixing them with the regular currencies issued by the governments of various countries is a sin! These currencies are of bits and bytes derived from pure technological genius.
In addition, cryptocurrencies are not the result of some governmental issue or some other centralizing authority. Thus, they are not under any regulatory body that allows complete freedom while crypto trading. Owing to them being out of any centralizing authority’s control, they do not come under the purview of legal tender.
Nevertheless, them not being under not some governmental authority does not reduce their value. Their involvement and relevance increased so much that they have the leverage of impacting a state’s finances.
When the market goes down owing to some natural circumstances, the prices of cryptocurrencies fall as well. Moreover, their volatile nature leaves the opportunity to buckle up after a fall in the market.
Their, blockchain technology opened up new dimensions of investment for the enthusiastic lot that makes crypto trading a call of the 21st century.
How to Start Cryptocurrency Trading?
Investors love putting their money into cryptocurrency owing to its undying volatility. The right investment at the right time ensures that you will gain hefty profits. Investors jump into crypto trading with two primary goals; one is to accumulate their favourite crypto coin or make a humongous profit in dollars.
Nevertheless, you must be cautious while crypto trading as you do not want to lose your coins. Increasing the value of your dollars might be an easy deed, but the value of cryptocurrencies increasing is a tougher one. There is numerous crypto trading app that allows you to check your portfolio and conduct your crypto operations.
Numerous investors deal with the volatility with their patience as they HODL their coins till it increases to the desired value.
For all those who wish to initiate crypto trading, the following steps will shed light on the detailed steps;
- Create a Cryptocurrency Brokerage Account on Any Crypto Trading App
Everything begins with the creation of a cryptocurrency trading account that would facilitate your buys, sells and transactions. While creating the account you will have to provide information concerning your identification, date of birth, address, email address, social security number, etc.
There are numerous crypto trading platforms like Coinbase, Coinswitch, Gemini, etc that provide you with the opportunity to try your chances at crypto trading.
- Provide Funding to Your Account
Now that you have a crypto trading account, you require the capital to start your trading journey. Here, you have to link your trading account with a bank account you use for the withdrawal of funds. A debit card or wire transfer might be the preferable option here. The money withdrawn from your account will help in buying the coins you wish to.
- Decide on a Crypto Coin
Here comes the deciding part!
Out of the numerous cryptocurrencies listed on the platform, you have to choose the ones to invest in. While Bitcoin and Ethereum make up the most popular ones among investors, other altcoins perform well in the crypto market.
The best option would be to diversify your portfolio of cryptocurrencies, where you divide your investments among Bitcoin, Ethereum and others you feel will fetch you good profits.
- Curate a Strategy
Moving in without a solid strategy would be the last thing you would want to do. Provided, you just want to try your luck for the sake of it and do not worry about profits, such disastrous paths might be an option.
When you get into crypto trading, there are a plethora of trading signs around you to help you through the journey. For those who have a minimal idea about crypto trading, opting for a cryptocurrency trading course will help you crack wonders. Asia forex centre might be a good option here.
The experienced traders always move in with a curated strategy. Most strategies end up aligning with stock trading. One of the most famous strategies is the Elliot wave theory. The theory emerges successful because it considers the market sentiments before jumping into investments.
- Try Automated Crypto Trading
Numerous platforms support automatic trading. The trading bots on such platforms work in consonance with the best strategies to ensure that your trading goes in a positive direction. The bots will consider your investment strategy and will pursue it neutrally, to ensure that you garner the most profits out of it.
Such methods can either be conservative or aggressive upon which your trading profits depend.
- Consider Storing Your Cryptocurrency
Just buying and selling cryptocurrency is not everything. You must consider HODLing them for a considerable time. Under such circumstances, a crypto wallet might come in handy to store your crypto coins. They might either come as hardware wallets or software wallets with the assurance to protect your currencies from any malware attack or hacker intrusion.
Talking about hardware wallets, Offline Ledger appears to be a great option. Conversely, software wallets include some of the best options like ZenGo and others on google, iOs and android that are available for free.
Why Trade Cryptocurrency?
Numerous traders reel under the doubt concerning why they should trade cryptocurrencies. While some get afraid to invest their money, some feel lazy about diversifying their portfolio. For all those still searching for reasons to trade cryptocurrency, the following points will cement the need;
- Volatility
The volatility factor makes crypto trading more exciting than ever. The prices rise as high as the sky and sometimes thrash to the ground. Though the risk factors happen to be more here, the chances of good profits in a shorter period becomes possible.
You must conduct proper market research before starting your journey. Proper market research will give you positive results most of the time.
- No Constraints on Functioning
Crypto trading is possible throughout the day. Unlike government-regulated stock markets that open and close at fixed timings, the crypto market is available 24 *7. Moreover, there are no government organizations to regulate your actions, thus giving you the leverage to function as per your whims.
- Liquidity Improvised
Liquidity refers to the measure concerning how fast can a cryptocurrency can get converted to cash without inflicting the market price. It facilitates faster transactions, better pricing and increased accuracy for technical analysis.
- Leverage to Go Long and Short
When you purchase a cryptocurrency, you wait for the prices to go high for fetching you considerable profits. Nevertheless, crypto trading facilitates you to utilize the ups and downs of the market according to your preferences. Thus, you can keep a check on the market and exploit the transition points for your gain.
- Rapid Account Opening
For cryptocurrency buyers, account opening takes considerable time as the transactions and buying-selling happen through a third-party platform. Here the need for an exchange account arises along with a crypto wallet where you have to store your cryptocurrency.
Conversely, as a crypto trader, there is no requirement to set up or manage some exchange account. The procedure happens to be easier and less time-consuming.
Final Thoughts
The time has come when you must explore this aspect of garnering handsome profits. Try your luck in trading with the above-mentioned methods and find yourself happy and successful.
Provided you never explored the arena of crytpo trading, don’t delay any further!
Numerous individuals have tried their luck and implemented their skills to become the kings and queens of crypto trading. Now it’s your turn!
Nevertheless do not hurry with crypto trading after having a look at the enticing profits.
You must take it slow and invest your time in understanding the market. Only when you take your patience into account, your skills will do justice to your efforts.