How to trade Cryptocurrency? In all seriousness, cryptocurrency trading can be a risky business. Yes, it’s true — some people have made lots of money. However, some people have lost lots of money too.
For those of you who are interested in learning about cryptocurrency trading, we are here to help you get started. This beginner’s guide is going to show you everything you need to know. For explaining the topic thinks that you have some money and you want to invest. How are you going to go about it? The portals which connect our world to the crypto-worlds are called “Exchanges” and there are a lot of exchanges out there, however, before you choose to invest in one, there are certain things you need to look out for. Let’s call this the “Exchange Checklist.”
Validity: Before you even do anything, first make sure that the exchange is available in your area. Eg. Coinbase, one of the largest exchanges, is not available in India and Indonesia. So before you do anything please check this.
Reputation: The next thing that you need to check is the reputation of the exchange. Are people happy with their services? Has it been hacked recently? How secure is it? Have people complained about it? Twitter and Reddit are good sources for checking this.
Exchange Rates: Up next we have the exchange rates. Different exchanges have their own exchange rates which may vary.
Safety: Please always choose exchanges that need some sort of ID verification from you. Even though they may take time, they are easily 100 times safer and secure than anonymous exchanges. At the end of the day, it is your hard-earned money. You must take that extra step to keep it secure.
When people trade, they need to use a cryptocurrency exchange. This is so buyers and sellers can be matched. For example, if you are holding Bitcoin and want to sell it for Ethereum, an exchange will help you find an Ethereum seller to trade with. Exchanges will charge you a fee for doing this, which normally costs around 0.1% for each trade. Cryptocurrency trading is now really popular, with billions of dollars’ worth of coins being bought and sold every day.
The “lucky” ones have made a serious amount of money doing this, and there are lots of people that are now trading cryptocurrency as a full-time job. However, experienced traders use lots of different tools to help them pick the right coins at the right time. This can include software that helps investors analyze previous pricing trends etc.
Nevertheless, everyone must start somewhere! As long as you are not trading more than you can afford to lose, there is no harm in giving it a try.