Do you want to know how to get started with trading Cryptocurrency? If your answer is yes, then you’ve arrived at your bus stop. In this article, I’ll be dishing out some basic Crypto trading tips, concise enough to get you started the right way.
You’ve heard about it on the news, and social media, read about it in newspapers, and blogs- that people are making a lot of money every day trading Cryptocurrency. Well, I’m glad to let you know that this information is correct.
However, just like in forex trading, to make money trading Crypto, there is specific knowledge you need to possess in your arsenal to sail through. Otherwise, you will lose money. Before we delve further, let’s quickly examine what Crypto and Crypto trading is all about.
What is Cryptocurrency and Cryptocurrency Trading?
The chances are that you probably still don’t fully comprehend what Crypto is all about. Hence, to further understand its concept, a succinct definition wouldn’t be a bad idea.
Therefore, Cryptocurrency can be described as a new form of decentralized digital currency that can be utilized as a store of value or used for peer-peer transactions on the internet, outside the control of central authorities and governments.
Cryptocurrency trading, on the other hand, can be likened to Forex trading in several ways. It allows traders to buy Crypto in US dollars. Like Forex, traders can trade with a swing, daily or weekly up-and-down volatility, or buy-and-hold trading strategy. Making a profit or a loss depends to no small extent on the accuracy of the trader’s technical and fundamental analysis of the chart and financial market. Hence, the need for all prospective crypto traders to be very knowledgeable before venturing into trading.
Now to the topic proper- How do you trade Cryptocurrency?
1. Choose an exchange:
This is basically the first thing you must do to kick-start your crypto trading plan. Exchanges are crypto platforms where you trade digital currency for fiat or other digital currencies.
To buy Crypto, you will need an exchange, and to start with, it is crucial that you take the time to search for reliable exchanges that effectively deliver in your country. This is due to certain factors like transaction requirements, some do so accept traditional money for crypto purchases), the country’s laws and regulations, the need to confirm physical addresses, and a few others.
Also, your choice of exchange should be restricted to those that accept fiat currency to purchase coins and do not limit or prohibit the withdrawal of coins from your account. Besides, it would be best if you be on the lookout for how long your exchange of choice takes to process transactions as well as the available payment options.
For reliable exchanges in Australia, you can follow the Best Crypto Exchanges for some valuable exchange recommendations.
2. Account creation:
The next step now is for you to create an account with your exchange of choice. You are required to provide only original information to avoid issues in the future. Once your Crypto deposit is confirmed, you can start trading
3. Carry out your first transaction:
After you must have successfully created your account, you are ready for your first transaction. First, you need to connect your account to your payment source (I.e., payment method). The verification of your payment method usually takes between 3 to 5 days or more. This also is dependent on the payment method and the exchange.
The next thing Is to buy your Crypto of choice in whatever quantity you want at a particular dollar amount. Afterward, you wait for the transaction processing to be completed. This, however, may take days depending on your exchange, transaction fee, and payment method.
Finally, it is essential to let you know that if you intend to buy and hold your coin and not trade it, you shouldn’t leave it in your exchange account. Instead, you move it to a crypto wallet. This is a result of the high volatility rate of bitcoin. This way, you don’t lose parts of your coin at the very beginning.
Provided By Tax Software Company, Sovos
