Cryptocurrency — it’s the talk of the 21st century. Many people only thought it was a passing fad, but it’s proven resilient, growing more and more popular over the years.
However, much of the talk about cryptocurrency is vague and politicized. It may leave a standard viewer wondering what is cryptocurrency? — what is Bitcoin? — what is Dogecoin? — is investing in cryptocurrency right for me?
If you’ve found yourself asking these questions, you’ve come to the right place. This article will walk you through a brief guide on how to trade crypto.
Step One — Understand Cryptocurrency
First of all, you have to answer the question — what is cryptocurrency.
Cryptocurrency is a completely digital currency, used to buy goods and services. There is no physical currency. Instead of federal regulation, bitcoin mining and blockchain are used to ensure transactions are legal.
Crypto is often thought of as “digital gold”. People invest in as a way to store their assets as a decentralized alternative to banking. Trading cryptocurrency based on market share could be a way to earn a lot of money — but it’s risky; crypto is famously volatile.
Step Two — Pick an Exchange
The federal government currently doesn’t have a system in place to help you buy and sell cryptocurrencies, so you’re going to need to find a trading platform or exchange. A reliable exchange will help you buy and sell your crypto, and conduct your transactions with ease.
See where to buy bitcoin in Canada, to better increase your chances of investing right.
Step Three — Fund Your Account
Once you’ve set up shop with a trustworthy exchange, you’re going to have to buy the bitcoins. Most exchanges allow you to link your bank account/debit card or wire money to the exchange. A verification process will mean that money will take a little while to appear in your exchange account.
Step Four — Pick a Currency
Next, you’re going to have to pick a cryptocurrency to invest and trade with. Bitcoin is the most popular, and probably the safest since there’s a set number of bitcoins in circulation. This means that its prices don’t fluctuate as drastically day to day; Ethereum is also a smart option.
There are thousands of altcoins out there (alternatives to bitcoin). Do some research, and see what’s best for you.
Step Five — Put In An Order
The final step before you head off into the world of trading is to place an order for the amount of crypto you want. Head to any crypto calculator to figure out just how much to invest.
Now That You Know How to Trade Crypto — Start Trading
Now you know all the steps you need to take to learn how to trade crypto. Take into account the current fluctuations on the market, so you know when to buy, sell, and trade. Welcome to the world of the bitcoin and the new way of the 21st century.
For more articles like this, check out our “saving money” section. Happy trading!