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HomeCryptocurrencyCrypto TradingHow To Trade Cryptocurrency

How To Trade Cryptocurrency

Photo by Kanchanara on Unsplash

Trading cryptocurrency is a different market than stocks, bonds and others. But with some good advice and an easier guide to follow anyone can start trading cryptocurrency.

Why trade in the crypto market instead of others?

Whether crypto or other types of currency is most beneficial depends on each trader’s interest and goals. Those who wish to trade with lower risks might find the bond market more appropriate. The currency of crypto revolves around high volatility and risks which do not apply to every trader.

If trading crypto is hard for everyday people

Trading business is hard for all beginners. All trades come with their own set of rules which a trader must learn and obey. But there are two similarities for all trades, knowledge is power and two – love what you do, and you can become a master at it.

Except for the things mentioned above, everyone can read to become a trader. Several well-written guides are available online. Get concrete tips on how to trade cryptocurrency which both beginners and seasoned traders can benefit from.     

A summary of the history of cryptocurrency

The very first cryptocurrency was electric money called ecash made by David Chaum in 1983. Without any great success, a few other electric monies were made up until 2009 when the first decentralized cryptocurrency was presented by Satoshi Nakamoto under the name Bitcoin.

Bitcoin is still the leading cryptocurrency however several other currencies have followed. Today the market consists of an unknown number of currencies, on some sites you can choose from nearly 6 000 currencies and more are likely to appear in the future.

Here is a selection of the existing currencies:

  • Bitcoin
  • Ethereum
  • Tether
  • Cardano
  • Litecoin
  • Stellar
  • USD Coin
  • TRON
  • Chainlink
  • Dodgecoin

A few tips on the choice of cryptocurrency

The choice to select which of all existing currencies to invest in is a decision only one can make. The most popular currencies (like Bitcoin, Ethereum and Tether) might not always be the best. When trading with highly popular currencies’ you pay a higher price but at the same time will your investment not suffer as much if the currency were to decline.

Much available advice online is talking about Bitcoin as the most secure crypto. If this is true remains unanswered. But for new traders can famous currencies like Bitcoin at least feel more secure to trade with.  

How to make the first deposit

In the crypto market, you can either buy currency through an exchange or a broker. Brokers are highly recommended for all beginners since trading without them includes a whole lot more cryptocurrency knowledge. Be sure to follow advice and reviews to locate the best broker online.

Three important steps to becoming a crypto trader

Before the first deposit should every trader check on three things revolving around security. Online trading comes with specifically high risks however with a few small means can trading with crypto be much safer.

Number One – Private key and transfer address

Make sure to sign in with a 64-character key when trading cryptocurrency. Also, always use an analogous email address when transfers are being made. That way the risk of being exposed to fraud reduces tremendously.

If you yourself do not possess knowledge of internet safety on this level, there is always the possibility of trading through a safe crypto wallet site.   

Number Two – Always invest in a high-quality anti-malware package

Your computer’s health is important at all times but especially if you want to trade with cryptocurrency. Never underestimate the likeliness of hackers taking notice of you, they are out on the web and they will find your device if it lacks security.

Number Three – Choose your wallet with care

The wallet is where you will have your funds after buying them. Available wallets are:

  • Desktop Wallet
  • Mobile Wallet
  • Online Wallet

The wallets provide different levels of security as well as accessibility. The highest level of security is the desktop wallet however, if a hacker can hack your computer then they will access your wallet too.

Online wallets are best in terms of accessibility, but the security is lower than other options. All three alternatives have their own pros and cons, read more about them to learn which one you prefer.

Final words on trading cryptocurrency

The popularity of crypto as well as other trading market is already big and still growing. Many traders have made a small fortune on crypto while some have lost everything down to the very last penny. If you succeed or not is in part up to your skill and knowledge and in part up to the market which no one can influence on their own.

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