People who are running behind the buzz about crypto have been determined to take part in trading sooner or later. As cryptocurrency or digital currency has been creating a lot of buzz in the financial market nowadays, people are willing to get the hang of it and make money out of it. If you are one of those people, you have to come to the right place. Because today we are going to demonstrate 3 ways that are very essential when it comes to trading cryptocurrencies. Excited, right? Let’s get started then.
The 3 optimal ways to become a crypto-trader are:
- Fiat to Crypto Trading
- Storing Cryptocurrencies
- Crypto to Crypto Trading
Let’s talk in detail about these ways.
Fiat to Crypto Trading
When people have some extra money in hand, they tend to invest it in some profitable venture. Digital forms of money have been a great factor when it comes to investing in this digital world. The mediums that interlink our fiat currency to the crypto worlds are known as “exchanges”. What I am trying to explain here is, you need to invest in an exchange that you prefer the most out of hundreds. Prior to investing, there are a few things you need to make sure. We have prepared an exchange checklist for you, let’s have a look at that:
- Make sure the exchange is accessible: Before jumping over to an exchange, you have to ensure that it is accessible and available in your area. For instance, we can talk about Coinbase or Bitstamp. They are one of the greatest cryptocurrency exchanges in the world, however, you can’t get them in India and Indonesia. Thus, it’s very important that you check this matter before you make your decision. Besides, there are some other exchanges that allow short selling. You likewise need to learn how to short bitcoin because it’s another big factor.
- Make sure it is a reputable one: The reputation of the exchange is something you can’t overlook. People have to be happy with the services of the exchange that you are planning to trade with. Make sure it has not been hacked recently. It has to be 100% secure with no complaints. Do your research on Reddit and Twitter regarding this matter.
- Think about the exchange rates: The rate may vary from exchange to exchange. You are supposed to research on 3 to 4 exchanges to check which would be better for you with the exchange rates.
- Is it safe enough? Make sure that the exchange you choose requires some kind of ID verification from you. No matter what, the exchanges that ask you for verification are 100x better than those which don’t. You should always be careful about your hard-earned money.
You have to store your cryptocurrencies if you want them to be protected. And, to store them, you will need a wallet. The wallet conducts with your public address and private key which are the basement of your security. These two things will help you to store your cryptocurrency, as well as sending and receiving them. You might know what is a private key and public address, however, let’s do a brief explanation on these things so that it gets clearer.
- Private Key: The private key ensures your right to access and helps you to make transactions of your money.
- Public Address: You share this address to everyone so that they can send you money to this specific address.
You only give away your public address. You should never share your private key to any single body. It’s supposed to be kept a secret with you only. I hope it’s clear to you now.
Crypto to Crypto Trading
Not only that, you can now do your trading from crypto to crypto. For this, you will need an exchange that allows this type of trading. Exchanges like Binance allows its users to do such trading. Most of the exchanges prefer Bitcojnm to be traded on their platform. So, get an exchange that allows crypto to crypto trading. Make sure that you are aware of their security system and credibility.
Reading the cryptocurrency chart is a great deal for you if you are looking for a profit out of your trading experiences. Conducting the graphs and lines is the most intimidating thing you will face. However, now you know the ways of trading cryptocurrencies but how do you know which are the best exchanges that you can trade on? Well, we are going to demonstrate a few exchanges for you below.
- Coinbase: Without any doubt, Coinbase is the most popular one all around the globe. If you are a beginner, you can easily optimize this exchange as the interface is very beginner-friendly and it enables buying crypto with USD.
- Binance: Binance is currently conducting with more than 200 crypto trading pairs. It is the one that allows crypto to crypto trading and it’s likewise one of the most popular ones.
- Bittrex: This exchange has been invented in 2013. Its security is top-notch and it also accepts crypto to crypto trading.
- Bitfinex: This Hong Kong-based crypto exchange was started its journey in 2012. They offer a lot of cryptos along with USD, GPB, and EUR.
Trading crypto might seem a bit daunting at first hand but once you get the hang of it, it will get easier. Meanwhile, you need to be very patient in such activities because the magic doesn’t happen overnight. So, having patience will pay off once you get to know the nuts and bolts. I hope this guide helps you enough to get you started with the journey. Best of luck.