What You Need to Start Crypto Trading ?

        

 

The cryptocurrency market cap is now around $300 billion, with over 1,500 cryptocurrencies. Not surprisingly, more and more people around the world have decided to enter the industry and start investing in cryptocurrencies. However, trading cryptocurrencies can seem confusing at first as the process itself is different Trading from fiat exchanges and what many investors and traders are used to.Today, we will outline four basic steps to help you get started with crypto trading.

1. Pick an exchange to trade on

Just like fiat finance investing in cryptocurrencies, you need a place to trade these coins. First, you need to register and deposit some funds into your account, then start buying and selling cryptocurrencies.

There are many popular cryptocurrency exchanges such as:

• Coinbase
• Poloniex
• CEX
• Bittrex
• Bitfinex
• Binance
• KuCoin

Such sites may have different terms of service, and their trading platforms may vary widely, so it's best to research and go through a couple of exchanges' reviews (here's two: one or two). This will help you choose the best venue for you.

According to statistics from CryptocoinCharts, there are currently nearly 200 cryptocurrency exchanges with a combined daily trading volume of $3.24 billion, but not all of these markets are reliable. It is a common occurrence for cryptocurrency traders to lose funds due to exchange hacks Basics (here are some examples: one two three). There were also some exchanges that went out of business abruptly with little explanation, leading to the loss of investor funds. Therefore, choosing a trustworthy exchange is crucial. Best choice at the beginning The largest and best known selection.

IMPORTANT: Not all exchanges accept fiat currencies, so you may have to buy cryptocurrency and then deposit your coins on the exchange to start investing (but there are also exchange-broker-wallet hybrids like Coinbase where you can do everything in one place).

This brings us to the next step of getting a cryptocurrency wallet.

2. Chose a cryptocurrency wallet

Since there are many exchanges, investors must somehow transfer funds between them and also have a place to store their assets. Cryptocurrency wallets are tools that allow you to store and send cryptocurrencies back and forth.

There are currently several types of crypto wallets (mobile desktop hardware paper wallets). To get started, you need a mobile or desktop (web) hot wallet connected to the internet. Read more on the topic in this guide.

Almost all cryptocurrencies now have their official wallets such as Bitcoin Core Ethereum Wallet or MyEtherWallet Litecoin-QT and Dash Core. You will find links to their official wallets on most cryptocurrency websites.

Multi-currency wallets are also available, here are a few examples:

• Jaxx Wallet: allows transactions with Bitcoin Bitcoin Cash Ethereum Ethereum Classic Litecoin Dash Zcash and other coins;
• Coinomi: supports 64 cryptocurrencies;
• Exodus: A desktop wallet that can be used to store and send Bitcoin Bitcoin Cash Ethereum Ethereum Classic Litecoin OmiseGo Qtum Dash Bat Aragorn and other currencies.

As mentioned above, there are some opportunities for exchanges using built-in wallets such as Poloniex or Coinbase.

When you have selected the wallet you want to use, you are ready to start investing.

3. Find sources of information

Cryptocurrencies are highly volatile assets whose prices can rise and fall dramatically within a few hours. Such actions can be triggered by multiple events, so crypto traders must constantly monitor market information.

Before putting money into a coin, it's a good idea to research the asset. One of the best tools for this research is Coinmarketcap, a website where you can find information about every coin and token available. The data includes capitalized supply transaction volumes and more. so the site can be used for Cryptocurrency comparison. Cryptocompare is another useful site for this type of data.

The best way to follow crypto-related news is to follow the industry's leading publication and blog: Coindesk News Bitcoin The Merkle Hackernoon. More useful information can be found on social media  —  You should delve into crypto-related subreddits Telegram and Discord channels and Quora For example threads.

Another great way to get data is CoinMarketCal, which tracks crypto-related events that can affect coins traded on exchanges.

4. Leverage technology to increase productivity and reduce risk

By now, you have some trading knowledge and tools. However, some elements are still missing compared to the statutory investment process.

First, fiat investors can use stock indices as benchmarks when building their portfolios  —  The S&P 500 and Nasdaq Composite are perfect examples of such benchmarks. They allow investors to easily trade entire industries and manage complex portfolios with direct investment reductions Portfolio risk and volatility.

You need to find similar tools for the cryptocurrency market  —  For example Cryptoindex 100 (CIX100) is an automatic index calculated by a machine learning algorithm that analyzes cryptocurrencies. This tool allows traders to reduce the volatility and risk of their portfolio as well as the cost and The effort inherent in investing in multiple tokens results in significant savings in trading.

After building a portfolio, you can track coins through specialized apps like Blockfolio or Delta, which provide valuable insights (real-time trade prices, order books for each coin, etc.). Using these tools can also increase productivity.

Conclusion

There are a number of differences in cryptocurrency trading compared to traditional fiat exchanges. To succeed in the crypto space, you need to find trusted sources of information Do your research carefully Choose the most suitable exchanges and wallets, and find benchmarks and tools for your portfolio manage.