How to trade cryptocurrencies?
Cryptocurrencies are very popular nowadays, and many investors are interested in this type of investment. But there are a lot of risks connected to digital currencies and a lot of people aren’t brave enough to trade them. Now beginners are more interested than regular traders. This is one of the reasons why we what to present you this guide. The two most important things you need to review is the cryptocurrency wallet and cryptocurrency exchange. After all, the safety of your money is essential. In the last couple of years, the cryptocurrency market has considered substantial damage with numerous hacker attacks.
What to know before you start trading
A cryptocurrency exchange is not yet a part of the regular stock exchange. But, we would suggest you use Coinbase and GDXA, the pro version of Coinbase with lower fees. You need to keep in mind that neither of these are the same as Wall Street and its exchange.
Beginners might prefer to trade cryptocurrency stocks on the stock market. The most notable bitcoin stock is GBTC. But, keep in mind that GBTC only trades at a premium, which means that bitcoins are cheaper, that buying shares here. This will not be an ideal solution for many people. Also, cryptocurrency trading market is open 24/7, even days in a week.
The easiest way is to trade your coins at Coinbase, but you can only sell, buy and store bitcoins, Ethereum, litecoin, bitcoin cash and coinbase. On the other hand, if you are serious about trading other coins, then you can check out GDAX, Bittrex, Binance, and Kraken.
In 2018, the cryptocurrency market will be volatile, which means you can make a fortune, but also, you can lose all. You should only choose the wallets and exchanges that reputable and reliable if you want to avoid frauds.
You don’t always have to buy coins, considering their price. There is also another way; you can invest in digital currencies via cryptocurrency mining. This is a legit way, and you only need a powerful computer, and you can start right away. For example, an average investor will want to trade USD for coins, and they want to avoid the complications and investments through mining. In this case, your job is to validate transactions and earn money.
How to start with a trade?
First of all, you need to choose a reputable company that will provide you an exchange and wallet, just to keep things simple. Beginners should also trade prominent coins, such as Bitcoin and Ethereum. But, for this trade, you need to invest a lot of money. It’s always best to choose the exchange located in your country, for example, in the U.S. you can choose Coinbase. After you master Coinbase, you can switch to next one. Beginners shouldn’t perform margin trading, unless they know that it is and at least you accumulate some skills. Considering its stability, cryptocurrencies are extremely volatile and you need to careful.