The cryptocurrency market was introduced only a few years ago- in 2009. It’s the latest online payment transaction mode, and that’s why not everyone knows everything about it. If you are new to the world of crypto and wish to earn through from it, we can help you. Crypto trading might seem confusing in the beginning. This confusion can result in bad investments. Here in this article, we have given the three important steps that will help you to trade safely in the crypto market.
Follow these points, and you’ll face no confusion.
Table of Contents
Select An Exchange To Trade
Just like stocks, you need a platform where you can trade and invest in cryptocurrencies. If you search on Google for these platforms, you’ll find countless options.
Here are a few exchanges that you can choose from:
- Coinbase
- CEX
- Poloniex
- Bittrex
- Binance
- Bitfinex
- KuCoin
These are some of the popular platforms to trade cryptocurrencies. You can either use them on your smartphones or your desktop at your convenience. It’s not compulsory that you must select only from the above choices. There are many exchanges that are better than them.
You should give enough time to research such platforms. This will help you find reliable trading softwares. Many traders have lost money due to issues like- their account got hacked. Or due to any technical error, their payment was made, but the transaction wasn’t recorded. If you want to avoid these losses, it’s best to research properly and find a crypto exchange that you can rely upon.
Make A Crypto Wallet
Just like you need a Demat account to store your shares. Similarly, to store your cryptocurrencies, you need a crypto wallet. Just like the trading platforms, these wallets work on both smartphones and desktops. There are various types of cryptocurrencies, and each of them has its separate wallet. Such as- Bitcoin Core Wallet, MyEtherWallet or Ethereum Wallet, Dash Core, and Litecoin-QT.
There are also wallets where you can store multiple currencies like-
- Jaxx Wallet- It allows transactions with Bitcoin, Ethereum Classic, Bitcoin Cash Ethereum, Litecoin, Zcash, Dash, and other coins.
- Coinomi- Supports around 64 cryptocurrencies.
- Exodus- It’s a desktop wallet that can store and send Bitcoins, Ethereum, Bitcoin Cash, Ethereum Classic, OmiseGo, Litecoin, Qtum, Bat, Aragorn, Dash, and other digital currencies.
When you are done choosing a wallet, you are all set to start investing. Just read the last step, and you can proceed to trade in cryptocurrency.
Cryptocurrency Analysis
Before you start investing your funds in the crypto market, it’s important to learn cryptocurrency analysis. Investing in digital currencies is risky. And this analysis helps to determine the right time to invest in the right currency. There are so many cryptocurrency analysis methods, but the two most popular ones are- cryptocurrency technical analysis and fundamental analysis. Let’s talk about them in detail below.
Technical Analysis
Crypto trading technical analysis includes studying statistical trends, price movements, and swings of the currencies. This analysis helps to determine the price of a currency as a long-term and short-term investment. The crypto market is continuously changing. Cryptocurrency technical analysis predicts the future price of a currency and if it’s worth investing in.
Fundamental Analysis
Crypto fundamental analysis is an approach investors use to find out whether cryptocurrency is overvalued or undervalued. This information is very useful in crypto trading. It will help you trade safely as you’ll know the right current value of the crypto. So chances of bad investment decrease.
Final Words
So these were the three steps to start trading in cryptocurrency. If you follow these points precisely, you can earn lots of money from this market.