How to trade cryptocurrency for beginners

Many different approaches exist in terms of how to trade cryptocurrencies. In order to start trading cryptocurrencies, one first needs adequate knowledge of the subject. It is also critical to know the associated risks and the laws that may apply based on one’s jurisdiction and decisions should be made accordingly.

Steps for cryptocurrency trading

Sign up for a cryptocurrency exchange

You’ll need to open an account with a crypto exchange unless you already own cryptocurrency. The best crypto brokerages on the market include Coinbase, eToro and Gemini. All three of these services have a straightforward user interface and a wide range of altcoins to pick from.

To open an account with a crypto brokerage, you’ll need to supply personal identifying information just like you would with a stock brokerage. When creating an account, you’ll need to submit your address, date of birth, Social Security number (in the United States) and email address, among other things known as Know Your Customer (KYC) requirements.

Fund your account

You’ll need to connect your bank account once you’ve signed up with a crypto brokerage. Most cryptocurrency exchanges accept bank deposits via debit cards and wire transfers. Wire transfers are usually the most cost-effective way to fill your account and they’re accessible on Coinbase and Gemini.

Pick a crypto to invest in

The majority of cryptocurrency traders put their money into Bitcoin and Ether. However, trading utilizing technical indicators is possible because these cryptocurrencies move more predictably than smaller altcoins.

Many cryptocurrency investors put a portion of their money into altcoins. Although riskier than large-market cap cryptos, small mid-market cap cryptos have more significant upside potential.

Start trading

You might try automatic crypto trading with software like Coinrule if you’re looking for a crypto trading strategy. Crypto trading bots implement a process designed to provide you with the most significant returns possible based on your investment objectives.

You can make money rapidly, keep your coins, or diversify your portfolio with crypto automated trading, which can provide you with a conservative, neutral, or aggressive way. You might even explore trading cryptocurrency actively on some sites while automating trading on others.

Store your cryptocurrency

If you’re actively trading BTC, you’ll need to keep your funds on the exchange in order to access them. For example, you should purchase a Bitcoin wallet if you’re buying cryptocurrency to hold for the medium to long term.

Software wallets and hardware wallets are two types of cryptocurrency wallets. Both are safe, but hardware wallets provide the most protection because they keep your cryptocurrency on a physical device that is not connected to the internet.