How to Learn and Start Cryptocurrency Trading? (4 Easy Steps)
The crypto market now has over 2000 crypto coins and it doesn’t come as a surprise that more and more people across the globe want to invest in this industry. However, if you are just going to start trading in cryptocurrency, then there are some essential steps that you should keep in mind. The process of trading in crypto is different from fiat trading. Some of the steps to be followed when learning cryptocurrency trading are:
- Choose an exchange or broker platform to trade on
Similar to fiat finance, in order trade in cryptocurrencies, you need a place. Hence, you should register on an exchange and put some funds in your account to begin purchase and sale of crypto. There are a lot of renowned crypto exchanges and brokers available all over the world such as Bittrex, Coinbase, Bitfinex, Binance, eToro, Duxa Capital, etc.
However, every website has different regulations and terms and conditions and their trading may also differ. Hence, it is important that you do proper research and then choose a reliable exchange to trade on. According to coinmarketcap there are over 200 crypto exchanges which have a daily trade volume of $4billion, but not all trading platforms are reliable. There are exchanges which suddenly end their operations without any explanation, causing a lot of loss to traders. Hence, it is important to choose a trustworthy exchange
Also, know that not all exchanges accept fiat money so you may have to buy cryptocurrency first and then deposit coins in the exchange to commence trading. This makes it important for you to get a cryptocurrency wallet
- Select a cryptocurrency wallet
There are several exchanges where investors need to transfer funds and store their assets too. Cryptocurrency wallet allows you to store and send crypto anywhere. There are wallets for phone, desktop, hardware etc. All you need is a mobile or desktop along with an internet connection to get started.
Almost all virtual currencies have their official wallets like Bitcoin Core Wallet, Ethereum Waller, Dash Core, Litecoin-QT.
Once you have selected your wallet, you are all set and ready to trade.
- Grab the right information
Cryptocurrencies are a volatile asset and the prices can go up enormously within minutes. These moves may be triggered by some global event. Hence, a crypto trader should always monitor this market information.
Before you trade in a particular coin, make sure you study about it. One of the best places to do this study is Coinmarketcap. You can find out about everything related to a crypto coin.
You should also get info from social media, and check out crypto related Telegram, Quora threads and other forums.
- Make use of technology to add to your productivity
Once you have the right knowledge and instruments for trading, now you need the right crypto market tools and trading software such as Crypto Comeback Pro or Crypto Engine. Check out the indicators and price action theory. Also know about how to study the candle stick pattern. Check out the tutorials, videos and cryptocurrency trading lessons online. It will help you analyze cryptocurrencies.
Cryptocurrency trading is different from fiat trading. But, in order to succeed in crypto, you need have the right information sources, perfect research and a suitable exchange and wallet.