The ever-increasing crypto market cap with more than thousands of crypto coins is attractive as well as surprising for millions of people worldwide. Although the beginner’s guide to crypto trading may seem a little confusing, trading in crypto cannot be avoided by investors and traders. In this blog, we will try to make it easier for you to start trading in crypto with just four steps process.
Pick a reliable Crypto Exchange
Just like we need to pick a trading exchange for the stock market, cryptocurrencies trading needs a reliable place where you can trade coins spontaneously. After fulfilling the initial login and setup process, all you need is to buy and sell cryptos of your choice. Some of the popular crypto exchanges are CEX, Coinbase, Binance and KuCoin.
Before signing in any of the crypto exchanges, we would recommend reading all terms and conditions thoroughly besides what kind of services are offered by them. Do the basic research before deciding upon what can suit you the best.
At present, we have around 300 crypto exchanges worldwide that trade more than $3.24 bn volume per day. However, not every exchange is reliable while some can easily change their terms and conditions suddenly. Therefore, go with the big and renowned exchange in the start since they prove reliable in the long run.
Select a cryptocurrency wallet for crypto trading
Since there are many exchanges available for crypto trading, investors are required to transfer their funds between them due to some or other reasons. Investors are also required to place their coins in a vault for storing purposes. Cryptocurrency wallets are those widgets that can help you in storing and transferring coins in desired wallets.
At present, there are various kinds of crypto wallets such as desktop, mobile, paper and hardware. For beginners, a desktop hot wallet or mobile is preferred which is connected to the internet. Though, most of the cryptocurrencies today comes with their official wallets like Ethereum Wallet, Bitcoin Core Wallet or Dash Core that supports cryptocurrencies selected by the exchange.
Find good sources of information for smooth crypto trading
You must comprehend the volatile nature of the crypto market where prices do down and rises in a huge percentage. Such moves are usually triggered because of large multiple events which makes it necessary for crypto traders to monitor every news related to cryptocurrencies.
Before you start crypto trading or putting in your hard-earned money in a coin, study thoroughly about the assets you seek to purchase. There are many reliable websites and crypto apps that provide investors with current information about every coin or token available. Other than this, you need to study crypto supply, volume and capitalization that can further help in making comparisons. Some useful information can be collected from the news source or social media sites too.
Use web and technology to ensure risk-free crypto trading
After you have had gathered current information about the crypto market and exchanges, you need to be equipped with instruments for smooth trading and advanced knowledge. Crypto investors can install crypto comparison tools to compare different exchange rates.
You can install tools that can help you in analysing cryptocurrency potential in future. For example, Cryptoindex 100 or CIX100 comes with an automated index calculation tool that can calculate machine learning algorithms to analyse cryptocurrency. Such tools prevent traders from falling into the trap of volatility or risk their portfolios. The tools also help crypto traders in reducing their costs or efforts while inheriting crypto coins which means, a significant saving while crypto trading.
Once you built your portfolio successfully, track your coins through specialised apps like Delta or Block folio that provides users with valuable information such as order book for every purchase and real-time exchange process. Such a tool helps in enhancing crypto trading potential also.