Everyone is going crazy over cryptocurrency trading because they believe that crypto is the future. And there’s nothing wrong with that; it’s the reality. People are constantly diving into this market; that’s why there are endless searches on google for beginners’ guide to crypto trading. If you’re also looking for the same, then you have come to the right place. Here you will know, as a beginner, what exactly you have to do to start cryptocurrency trading.
But first, there’s a little difference which you must learn about
Crypto Investing vs. Crypto Trading
People often confuse the two terms and use them interchangeably, but actually, investing is quite different from trading.
- Crypto Investing – Crypto investing is the concept of buying and holding crypto assets for longer tenures to derive higher returns in the future.
- Crypto Trading – Crypto trading is when you buy a crypto asset for short periods and sell them soon for a profit. For this, you make certain short-term strategies in order to attain profit in a short duration of time.
How to Start Cryptocurrency Trading?
Crypto trading for beginners must be confusing; that’s why it’s imperative to follow the proper steps. Here are a few steps which you can follow to begin your trading journey in cryptocurrency –
Step 1 – Choose Cryptocurrency Exchange
The very first step in the beginning cryptocurrency journey is to look for the best cryptocurrency exchanges. However, here are some of the most popular options for crypto trading for beginners-
- Coinbase
- Binance
- Kraken
- CoinDCX
- Gemini, etc.
Step 2 – Create an Account
As soon as you choose any cryptocurrency exchange, then you have to create your account in it. Once you have created the account, fund it using debit cards and wire transfers. For your information, a wire transfer is a more feasible option to fund your account, and the crypto exchanges like Geminin and Coinbase provide wire transfers for free.
Step 3 – Pick your Cryptocurrency
There are unlimited options when it comes to crypto trading for beginners. Either you can choose the one based on your research work or go for the most popular options – Bitcoin and Ethereum. Both of these coins are experts’ choice, as they believe that these cryptocurrencies are more easily predictable than other small coins. However, it’s not that you also have to do the same; you make your own decision that you thinks fits you the best. You can choose the altcoins as well because they also have shown a high growth rate which is a good option while trading.
Step 4 – Create a Strategy
Strategy is a vital element in cryptocurrency trading. By utilizing the correct fundamental and technical analysis, you can create a strategy that helps you achieve high profits in cryptocurrency trading.
However, if you’re a beginner who thinks that all this analysis and research is not your cup of tea, then you need to take the help of cryptocurrency trading guides. The guides make many complicated things easy for you. Sometimes with the help of guides, you come across the awful past experiences of experts, which you can avoid in your journey by learning them in advance.
For better assistance, you can pursue a cryptocurrency trading course and become an expert in the crypto market.
Step 5 – Secure Cryptocurrency
The final and most essential step is to store your crypto in a safe place. You can do it by choosing a digital wallet, and it can be hardware or software.
A cryptocurrency market is an exciting place, which you should not afford to miss. Whether you want to do crypto investing or crypto trading, this cryptocurrency trading guide must be extremely helpful for you. To make more informed decisions in the crypto market, stay in touch with the latest crypto coin news and guides with the help of reliable platforms like Coin Informer.
