Cryptocurrency trading has been the rage in recent years, with many people trying to join the gold rush of the digital era for a chance to become millionaires or perhaps billionaires. From Bitcoin to Ethereum and dozens others, there are many different cryptocurrencies to choose from on platforms such as Coinbase and Gemini. However, if you aren’t sure what you’re doing, cryptocurrency trading can quickly become overwhelming. Luckily, this blog has all the information you need to enter the world of cryptocurrency trading.
Establish a Cryptocurrency Trading Account
To start trading cryptocurrency, you first have to open an account on a trading platform. The most popular and trusted media are Coinbase, Gemini, and eToro. These three major trading platforms offer a variety of cryptocurrencies to trade in, allowing you to focus on one coin or accumulate a diverse wallet.
Add Funds to Your Account
You must’ve heard the expression, ‘You have to spend money to make money. Well, cryptocurrency trading is no different. To convert your traditional cash into cryptocurrency, you first connect your existing bank account to your cryptocurrency account on your chosen trading platform. Then, you can transfer funds via debit card or wire transfer. Wire transfers usually turn out cheaper; they’re free to do on both Gemini and Coinbase.
Choose a Cryptocurrency to Invest In
Next, you have to decide if you would like to invest or not. Do you want to put your money into one of the more established coins, such as Bitcoin or Ethereum? Or would you rather invest small chunks of money into various lesser-known coins? These ‘alt tokens,’ as they are called, tend to be more volatile but can also fetch greater rewards for buyers.
Craft Your Own Trading Strategy
The secret to cryptocurrency trading has no singular or right way to do things. Instead, there are a host of different market indicators you can look at to predict how a coin might fair in the coming months, and there’s never a guarantee that you’re right. So instead, cryptocurrency is all about trial and error; you have to be patient and take the time to learn what works and what doesn’t.
If you’re already an experienced stock trader, you might find that many of the same principles apply to cryptocurrency trading. Take the Elliot Wave Theory, for example. The theory aims to understand the human behavior behind various market forces, meaning it can also be used to speculate on the trajectory of the cryptocurrency market.
Try Automated Trading
An anxious hand can be the end of your cryptocurrency trading portfolio. Rather than constantly micromanaging your portfolio and selling at the slightest hint of a dip. Thanks to modern AI, automated trading can help you achieve your cryptocurrency trading goals without even lifting a finger. Set up your account and let the system’s AI make all the important decisions for you and get you the best deals possible.
Dive Deeper into the World of Cryptocurrency Trading
Cole Blackstar is an author who has found a unique way to merge his literary work with cryptocurrency technology. You can read his work here.