What is Cryptocurrency trading, and How to trade cryptocurrency for Beginners?

Posted by Dina on June 24th, 2022

"Cryptocurrency trading or crypto trading" is a method of trading based on the price changes of cryptocurrencies, using a contract for difference (CFD) trading account or buying and selling the underlying coins on an exchange. Without owning the underlying currency, CFD trading is a sort of derivative that enables you to wager on the price of Cryptocurrency changes.

For instance, if you think a cryptocurrency's value will rise, you can buy it, or sell it if you think it will fall. Both are leveraged instruments, indicating that you only need a small deposit to earn total exposure to the underlying market (margin trading cryptocurrency). However, leveraging crypto trading magnifies both profits and failures because your gain or loss still relies on the total amount of your investment.

Investors also utilize cryptocurrency options to lower risk or increase market exposure. Trading in cryptocurrency options refers to the "derivative" financial investment, whose value is derived from the price of another asset. In this case, the underlying cryptocurrency.

This article will explain crypto trading techniques and introduce you to the best crypto trading platforms like Blockchain Tradein and how a beginner can trade cryptocurrency.

How to trade cryptocurrency for Beginners :
When it comes to trading cryptocurrencies, there are numerous methods available. One must have sufficient knowledge of cryptocurrencies before one can begin trading them. Decisions should be taken by one's understanding of the risks involved and any applicable legislation in one's jurisdiction.

Cryptocurrency trading steps :

• Sign up for a cryptocurrency exchange
• Find your account
• Pick a Cryptocurrency to trade in
• Start trading
• Store your cryptocurrency
  
  

1. Sign up for a cryptocurrency exchange :

If you don't already hold cryptocurrency, you'll need to open an account with one. Blockchain Tradein is one of the top cryptocurrency brokerages available today. There is a large selection of alternative coins available on this platform.

You must provide personal information to open an account with a cryptocurrency brokerage. Your address, birth date, Social Security number (if you're in the United States), and email address are among the Know Your Customer (KYC) requirements that must be provided when registering an account.

2. Find your account :

Once you've registered with a cryptocurrency brokerage, you must connect your bank account. Debit cards and wire transfers are generally accepted for bank deposits on crypto trading exchanges. The most economical method of funding your account is typically a wire transfer.

3. Pick a cryptocurrency to invest in:

Bitcoin and Ether are the two cryptocurrencies that most cryptocurrency traders invest in. These cryptocurrencies move more predictably than smaller altcoins, making technical indicator trading possible.

A lot of cryptocurrency investors invest some portion of their funds in altcoins. Although more dangerous than large-market cap cryptos, small mid-market cap cryptos have more significant upside potential.

4. Start trading :

You can earn money rapidly by keeping your coins or diversifying your portfolio with automated crypto trading, which can provide you with a conservative and neutral way of trading. You might even consider actively trading cryptocurrencies on some websites while using trading automation on others.

5. Store your cryptocurrency :

If you're actively trading cryptocurrency, you'll need to keep your accounts on the exchange to access them. For instance, you should use a Crypto wallet if you're buying cryptocurrency to hold for the long term.

Software wallets and hardware wallets are two kinds of crypto wallets. Both are secure, but hardware wallets provide the most security because they keep your cryptocurrency on a physical device that is not linked to the internet.