You may have heard of the word cryptocurrency, but if you’re like most people, you probably don’t know what it means or how to get started trading it. Luckily, we created this beginner’s guide to cryptocurrency trading so that you can get started with cryptocurrency trading with no prior knowledge required! Keep reading to learn all about cryptocurrencies and how you can use them to make money on the web!
Is Cryptocurrency Trading for You?
One important caveat before we dive in: Crypto is volatile. As in, there’s not just money to be made—there are risks involved. The more you invest, it’s true, and especially if you use leverage (gasp!), the risk can also increase exponentially. With that said, I will say that crypto investing is a lot like stock investing: Most people don’t trade every day—if at all—and many investors will hold for long periods of time if they think it makes sense. You shouldn’t invest more than you can afford to lose or play around with; doing so could result in major losses if things go south or just as easily mean huge gains when your picks skyrocket in value—and these can happen very quickly.visit here
The first step is to pick a currency. The most popular cryptocurrency options are Bitcoin, Ethereum, Ripple, and Litecoin. At launch, there were just two: Bitcoin and its spinoff, Bitcoin Cash. We don’t recommend buying them at current prices; you’re better off holding on to your cash until either of those coins falls below $2,000—something that doesn’t seem likely anytime soon. Other promising alternatives include Ethereum ($275), Ripple ($0.37), and Litecoin ($56). Once you’ve decided which one(s) you want to invest in based on your risk appetite (which we will explain below), it’s time to open an account and fund it.
Crypto Tools & Resources
One of the first steps in your journey is getting some basic crypto tools. You’ll want a secure crypto wallet, and/or a hardware or paper wallet. Once you’ve set up your cryptocurrency wallet, you’ll want to start researching coins that interest you. There are lots of sources for information on upcoming ICOs (initial coin offerings) such as Bitcointalk and others visit here.
There are dozens of exchanges you can use, each one has its pros and cons. If you’re new to crypto, Binance is usually recommended. Here are some other exchanges that are also pretty good: Coinbase (most beginner-friendly), KuCoin, Bitstamp, and Bittrex. Find one that suits your needs and remember – never leave your funds on an exchange! They are very vulnerable to being hacked. Once you have found a suitable exchange for your needs, follow these steps
The most common way of storing your digital currency is in a wallet. There are many different types, each offering its own level of security and ease of use. Software wallets can be downloaded from app stores and directly from providers’ websites. Hardware wallets act as external hard drives that store private keys offline. You need both hardware and software wallets for complete security, so they are often paired together—often referred to as cold storage or a hardware/software combination wallet. Online (web) wallets host private keys online (in some cases with two-factor authentication), but allow you to access your currency on any computer or mobile device without downloading software.
Tricks of the Trade
As you’ve likely surmised by now, cryptocurrencies can fluctuate in value pretty wildly. Before you begin investing, it’s a good idea to do some research into the Tricks of the Trade. The phrase buys low and sells high should be your mantra. In other words, focus on buying assets that are undervalued and selling those that are overvalued.