There are several ways you can make money from cryptocurrency, one of which is Trading. Trading is an intelligent art of making predictions about the prices of cryptocurrencies. If successful, you can make lots of profit, and if otherwise, you can lose plenty of money.
Trading can be long-term or short-term. Long-term Trading requires buying cryptocurrencies, storing them, and selling them. In long-term Trading, traders can store cryptocurrencies for months or even years if certainly there would be returns.
On the other hand, in short-term Trading, crypto traders buy and sell cryptocurrencies for immediate profit. Short-term Trading is riskier than long-term Trading but can bring huge profits if done successfully. Most traders you find are short-term traders.
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Further, in Trading, you can trade coins by interpreting specific metrics. Of course, the metric for each currency differs, and so make their profits. However, each coin has a unique trading strategy, and we’ll not go into that in this article. Instead, in this article, we’ll guide you on how to begin trading cryptocurrencies. Enjoy!
5 Steps to Cryptocurrency Trading As a Beginners
Trading may be a complex process, but we have carefully simplified the procedures for you:
1. Open a broker account.
A broker is a person or a firm who is a transaction intermediary between a buyer and a seller. A broker may act as the buyer or the seller in some cases. When this happens, they become the principal party in the deal.
A brokerage account allows you to buy and sell investments like bonds, stocks, or securities. So, brokerage accounts are opened with brokers. Some top brokers in the space are Gemini, Coinbase, and store.
You’ll provide your details when opening a brokerage account, like every account. This info may not be susceptible; they’re your date of birth, location, and address.
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2. Fund your account
You have to fund your account to begin any transaction – on or off cryptocurrency. Funding your brokerage account can be via a wire transfer or debit card. However, wire transfer is the most common way of depositing funds into your brokerage account.
3. Choose a coin to invest in
After finding your account, you need to pick a coin to invest in. There are generally two types of currency: BTC and altcoins. Altcoins are coins aside from bitcoins, and there are prominent altcoins and small altcoins. An example of significant altcoins is Ether. For this reason, BTC and ETH are the common coins traded.
Likewise, we will advise you to invest in BTC and ETH because they’re the most predictable coins. On the other hand, investing in smaller altcoins may cause you to lose a massive sum of money and may bring in enormous profit if you’re lucky.
4. Start Trading
You can start trading by buying coins you predict will produce huge returns in the future. If you’re having issues with predictions, you can try crypto trading bots. Crypto trading bots implement a process that provides significant returns based on your investment.
Your best bet? You may explore active cryptocurrency trading while you subscribe to crypto trading bots.
5. Store your cryptocurrency
You must store your funds in inaccessible places when you’re trading – a wallet. A crypto wallet helps you hold funds while you actively trade coins for the short term or long term.
To Wrap It Up
There you have it! A guide on how to trade cryptocurrencies as a beginner. We have carefully highlighted steps on how to trade successfully.