This guide will teach you everything you need to know about buying, selling, and trading cryptocurrencies. If you’re interested in how the digital currency world works and you want to get in on the action, then this is the place to start!
Choose An Exchange
Before you can do anything, you will need to find and sign up for an exchange. Binance, Coinbase, and Kraken are among the most popular and most prominent cryptocurrency exchanges globally. Nonetheless, you should make your Crypto exchange selection based on your requirements, as some may or may not meet your needs. You should be aware of some things, such as your geographic location, the legalities of trading in your country, and which currencies they are trading. Nonetheless, once you have chosen an exchange that is right for you, you will need to move on to the next steps.
Create An Account
The first step will be to set up an account with your chosen exchange. Most of them offer reasonably intuitive methods to sign up, and setting up an account is straightforward if you’ve done it before.
Select Your Country
This is where things can get a little trickier. If your exchange doesn’t allow individuals from certain countries to use their platform, unfortunately, this is where your journey ends. Unless your nationality is permitted on the platform, it will not be possible to trade. There is no use in attempting to circumvent this by using VPNs etc., since the better exchanges usually require photo identification, such as a passport.
Verify Your Identity
To verify your identity and where you are located, you will need to provide some personal information. While it may seem intrusive and bothersome, this is for security purposes. If someone steals your identity and bank account, you will never see that money again once the thief buys and withdraws the cryptocurrency. Therefore, it is better to be safe than sorry. Furthermore, any exchange that doesn’t take security seriously should probably be avoided.
You will need to deposit fiat money (USD, EUR, GBP, YEN, etc.) into your account to buy crypto. If you already have some crypto from previous trades, you can use that to buy and sell. However, if you are new, then you will begin with fiat currency.
You Will Need A Wallet
Cryptocurrency wallets are digital wallets that store and use your private and public keys so you can use cryptocurrency. The term “crypto wallet” can describe several different types of digital wallets. The common denominator is that they all work with cryptocurrency in some way. They all have the same purpose but often differ in their functionality and features. Removing your cryptocurrency from an exchange and storing it in your wallet is good practice. There have been instances of some platforms’ servers being hacked and customers’ crypto investments stolen.
Decide What Coins You Want To Trade
To learn how to trade effectively in 2021, you should research the coins they want to buy. Since there are over 6000 different coins for sale, understanding which one you want to buy is essential. Exchanges that list the most common coins and some more esoteric options are your best choice. Here are some tokens that you should consider trading:
- Bitcoin: Bitcoin was created in 2008 by an unknown person, or group of people, under the alias Satoshi Nakamoto. You can consider it as the OG of cryptocurrency. It is expensive at the moment but still worth a punt.
- Etherium: You should buy Ethereum for its blockchain technology. As more businesses see the benefit of using the blockchain, many will flock to Ethereum, which provides the most advanced platform. In that sense, you should buy and HODL; try it!
- Bitcoin Cash: Bitcoin cash is a hard fork of the original bitcoin. Bitcoin cash was created to improve the speed of transactions and lower transaction fees. It has its adherents and is still popular to trade.
- Cardano: The development of the cryptocurrency began in 2015 with the creation of the Cardano project by three organizations. The project was initially named “Ethereum killer” due to its focus on smart contract functionality. Cardano adopted a layered architecture which it believes will allow for more flexible and complex applications.
- Tether: This token enables businesses and individuals without access to banking services or sophisticated trading platforms to store money on a global form of digital cash without volatility or downtime. It is poised to become a staple of fintech.
Understanding how to trade crypto can seem like an overwhelming task, but it doesn’t need to be. As long as you choose a suitable exchange, do your research before trading and understand the risks, you should be in a great position to make some money.