5 Steps on How to Trade in Cryptocurrency

Posted in Cryptocurrencies on March 1st, 2021

There are many types of cryptocurrency in the market, and they all use blockchain technology. Bitcoin is the largest of them all, followed by Ethereum. Unlike traditional investments, cryptocurrency is a very volatile asset making most investors prefer to trade it as it offers higher returns.

Most cryptocurrency traders aim to make a profit in US dollars or accumulate more Bitcoin; however, it is very easy to make a profit in cryptocurrency than accumulate Bitcoin.

There is no best cryptocurrency as each cryptocurrency serves a certain purpose. To start trading in cryptocurrency, visit Swyftx or any other company that deals in cryptocurrency to open a crypto brokerage account and start buying and selling cryptocurrency.

Trading in cryptocurrency is easy; you only need to follow these steps.

#1: Open a Cryptocurrency Account

To open one, check out Swiftx, Gemini, Coinbase, or any other crypto brokerage. You will be required to provide the crypto brokerage with your identification details such as your physical address, Social Security number, email address, and birth date.

#2: Deposit the Crypto Account

Once the crypto brokerage has opened a crypto account for you, you are required to link the account with your bank account. Some crypto brokerages provide both wire transfers and bank money transfers through debit cards. The wire transfers are usually the most affordable account funding option, and some crypto brokerages such as Gemini and Coinbase do not charge you anything when you use this option.

#3: Choose the Crypto to Trade In

Most cryptocurrency investors prefer to invest most of their capital in Ethereum and Bitcoin. These two are very easy to predict compared to other cryptocurrencies, making trading in them easier. Most investors invest a small portion of their capital in the smaller cryptos as they are riskier and have a higher potential of losing their capital than the large-market cryptos. These small-mid market cryptos values have risen by close to 1000% in recent months, making them very lucrative for investors who like to invest in high risked-cryptos.

#4: Pick a Strategy

There are very many crypto trading indicators that you can use when trading, and it would be best to consider certain factors before choosing the strategy to use. If it is your first time trading in cryptocurrency, consider buying a course in cryptocurrency trading. But if you have experience in stock trading, you can apply the stock trading strategies that you know on this platform as the strategies are similar.

#5: Store the Cryptocurrency

If cryptocurrency trading has picked up for you and you excel, think about storing your funds in exchange for ease of access. Also, get a cryptocurrency wallet if you plan on holding your cryptocurrency for a long time before selling them. These wallets come in the form of hardware or software and are very secure. The hardware wallet offers the best security than the software wallet as the stored crypto will always be offline, making it harder for hackers to access them.

In conclusion, cryptocurrency is very volatile and offers a higher return on investment than traditional investments. And with the abovementioned steps, you can start trading in cryptocurrency with ease; however, before picking on the cryptocurrency to trade on, research.

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