Should you buy or trade crypto? Before you make a decision it is important to consider the differences between these two strategies in detail.
Trade crypto – do you know how to do that? No? Don’t worry.
Read this article to the end. I want you to learn everything I know about trading crypto.
And it is a handful.
In the following articles, I will teach you, I’ll hold your hand until you feel you’re becoming a professional trader.
Here you will find lessons and instructions on how to trade with CFD, options, and cryptocurrencies.
In fact, in the past few weeks, I have received a lot of invitations from friends and acquaintances about how to trade crypto, and I decided to write these brief instructions in which I will explain in the simple way the possibilities to become engaged in crypto trade.
For the past year, cryptocurrencies have gained popularity, especially after the fact that people who bought Bitcoin 7 or 8 years ago, for several hundred dollars, today are millionaires. It’s hard for you to become millionaires if you start trading today, but it can still be very well profitable.
And maybe you want to buy a crypto and have it as a kind of savings account.
So, let’s start!
What to trade crypto?
First of all, you have to know that all successful traders were once the beginners who studied trading from the very basics while they gained experience over time. I am not going to explain the background of the cryptocurrency and how it works, because it is not relevant to trading for the average user. Most importantly, you have to know that the most popular currencies are: Bitcoin, Ethereum, and Litecoin, so I recommend that you initially focus only on them. There are currently hundreds of currencies worth $ 0.00001 per unit and they hope that one day they will become the new Bitcoin. There is always room for earnings with the three “main” currencies because they are very volatile. For example, the Bitcoin prices are often changing for over a few hundred dollars any day. The trading principle is the same as for any store – buy low, sell high.
Given that the cryptocurrencies are volatile (Bitcoin, in particular), there is always room for profit.
At first, you need to open an account and a wallet to buy or sell cryptocurrency. There are hundreds of different platforms for it. The registration process is actually very simple. Fill in your personal information and in the end, you will need to scan your ID card or passport through a webcam or mobile phone (if you register with a mobile application). This process sometimes should be repeated several times (I scanned it 3 times) because it may happen that the application can not read data (for example, if you do not hold the document steady in your hand). Once you have done this, you will receive a text message with the code that you will use for the first login on your mobile phone. After you are logged in, you will be presented with a dashboard. Here’s where you signup to Coinbase.
How to trade crypto?
- Instant purchase via debit/credit card
- Through a bank transfer of money from your bank account to your trade account.
What to do afterward, I will explain to you specifically on the case of registration on the largest CoinBase Platform.
If you are buying with the card, the process is quick, but the fee is 3.99% higher (card purchase fee) + 1.49% (standard Coinbase fee). If you decide to transfer via a bank, you must first send one euro/dollar to CoinBase account to confirm that it is your bank account. Then transfer the amount you want to trade with.
To transfer money to a Coinbase account usually takes 2 business days. The money will appear in your EUR/USD wallet and then you can buy crypto. All details for bank transfer payment will be found under Setting -> Payment Methods -> Add payment method.
Decide by yourself which method suits you better. If you don’t want to buy crypto right away, you may have better options. When you are ready to purchase, you have Buy/Sell on the toolbar.
Well, you’ll need first to choose which currency you want to buy. Then the method of payment and the amount. On the left side of the screen, you have details of the transaction. After you buy the crypto, you will receive an email confirmation that the purchase is completed.
You are now officially the owner of a cryptocurrency.
Trade crypto for profit
All you need now is to monitor the graph and decide when to buy or sell.
Side note: Coinbase is designed more like a wallet in which you will hold your cryptos, than as a platform for active trading (because the fees are quite high).
If you are planning to sell and buy every day you should use some other platform.
More about this on another occasion, in the continuation of teaching. One step at a time! But I want to tell you that trading crypto is based on the principle of stock trading. Let’s say this way, when you buy crypto you’re buying it in the hope the price will rise. So, you could sell it later and become a millionaire, right?
But, when trade crypto you are taking advantage of markets that are falling in price. The same comes when the markets are rising. In trading in general, this is well-known as going short.
Crypto market volatility
The cryptocurrency market volatile due to huge volumes of short-term profit and frequent trades. For example, do you remember October last year when the price of bitcoin rose to $19,378?
The volatility of crypto is an ingredient that makes the crypto market so exciting. Accelerated intraday price changes can provide a spectrum of opportunities for traders to go long and short. but pay attention, this also comes with great risk. You’ll need a risk management strategy.
I hope the instructions were helpful. Feel free to share this with someone you know to be interested in cryptos.
But remember one thing.
Trading and use of information presented here is at your own risk
You can learn also about trading currencies here