How To Start Cryptocurrency Trading Successfully

how to start cryptocurrency trading bitcoin trades

It's a big year in the world of cryptocurrency investing and trading. If you’re getting involved in cryptocurrency trading this year, we’ve got the perfect beginner’s guide to help you out for top trades. 

Choose Your Platform 

Before you buy crypto, you must decide where you’d like to do so. Most beginners choose a cryptocurrency exchange

An exchange is generally the easiest way to trade for BTC and crypto newbies, as it provides a lot of the steps for you. However, some of them charge high trading fees, so be wary. 

If you don’t want an exchange, you can trade peer-to-peer on an escrow service or even buy from a Bitcoin ATM. It’s all up to you and what you’re comfortable with. For advanced traders, there are even ETFs, Futures, and IOTA to try. Make sure you get more information before purchasing IOTA or other less commonly known cryptocurrencies. Knowledge is power when it comes to crypto trading in today's market.

Acquire A Crypto Wallet 

When you buy Bitcoin, you’re really buying the private keys that represent access to that Bitcoin. You need a place to store those keys. A cryptocurrency wallet is the place to do so. 

Initially, you can store your crypto in an online wallet on the exchange you buy from. However, this leaves your funds prone to hacks and other threats. It’s generally not a good idea for the long term. 

Instead, you should try a desktop or hardware wallet for your BTC and other valuable cryptocurrencies. A desktop wallet is an app on your computer that stores your crypto. It’s more secure than an online wallet, as it’s only connected to the internet when you have it open. However, it’s worth noting that if your drive fails or your computer is stolen, the keys might be lost. There are billions of dollars worth of Bitcoins out there with locked out users or lost hardware. 

A hardware wallet is a choice for serious investors. This is an external drive that stores your private keys. It’s incredibly risk-averse, as no one can gain access to it via hacking online. Instead, they’d have to come and grab the wallet themselves and get past your security measures. Fortunately, you can store a hardware wallet in a safe or with a bank. 

If you’re planning to hold, you can even try a paper wallet. This is literally a piece of paper with a QR code on it. Most paper wallet holders laminate that sheet and store it somewhere incredibly secure. That way, it can’t rip or be stolen. Come back to it in a few years and see how your investment has grown. 

Buy The Crypto 

Now that you know where to buy crypto and how to store it, it’s time to make the big move! Simply sign up on your platform of choice, link a funding method, and buy some assets. From there, you can send the assets to your wallet or hold them on the platform for a period of time. 

It is worth noting you can invest as little or as much as you would like. You don’t have to buy a whole Bitcoin or Ethereum, for instance. You can invest $10 on partial coins or lower cost cryptocurrencies such as Dogecoin, Litecoin, Tether, or XRP and start from there to greatly lower your risk factor

Hold Or Trade Crypto

Congratulations! You own cryptocurrency. Finally, it is time to decide what to do with it. If you would like, you can hold the cryptocurrencies assets until you see it fit to sell. This could be for months, years, or even decades. 

Otherwise, you can become a crypto day trader, buying low and selling high. Some traders invest in various altcoins as well, making profits with the smallest of margins. You can even do a little of both. It’s all up to you and what you’re comfortable with when you start trading cryptocurrency in the market.

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