How to Trade Cryptocurrencies Easily? – An Easy & Simple Guide for Beginners

How to Trade Cryptocurrencies

In recent times, cryptocurrencies are a mostly spoken topic in social media, trading platforms, and more. It is due to the positive impacts that made to the investors. Cryptocurrencies are existing in the market since the invention of blockchain technology in 2008. This remarking technology has been ruling the major digital platforms by making revolutions in all types of industries. If you are a crypto enthusiast person surviving in the Crypto industry, you might know the impacts it has already done in the marketplace.

We hope many people are aware of bitcoins which are the leading and most prominent cryptocurrencies. Also, it is recognized as the most traded cryptocurrency on the exchange platforms. In addition to this Bitcoin, other alternative popular digital currencies such as Ethereum, Litecoin, Ripple, bitcoin cash, and EOS have lengthy success stories. Currently, trading cryptocurrencies is one of the profitable ways to earn more money. Many investors and crypto enthusiasts will trade cryptocurrencies for their highest return. But you must be very cautious while trading cryptocurrencies. Because the crypto market is more volatile when compared to other marketplaces.

This article will guide you with the solution of how to trade the cryptocurrencies easily, where to trade cryptocurrencies, and much more.

Let’s begin with…

What is Cryptocurrency?

Cryptocurrencies are digital assets that are completely developed with the combination of cryptography and blockchain. Cryptography is a kind of technical term that has certain algorithms to protect the information and data. So this technology is also used for creating a cryptocurrency. Many people also say this as a cryptographic coin. The first cryptocurrency, Bitcoin, was invented in 2009 with the help of blockchain technology.

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(Image source: currency[dot]com)

Following bitcoin, many different alternative cryptocurrencies(Altcoins) were released across the world. such as Ethereum, Litecoin, Ripple, Bitcoin Cash, and the list goes on. According to recent research, there are more than 3,000 cryptocurrencies that are existing in the crypto space. However, new altcoins might have limited opportunities as they provide fewer buyers during trading. Thus, traders can focus and invest in the top 10 cryptocurrencies in 2021.

On the other hand, though Cryptocurrencies and Blockchain are going to make a massive impact in the future. But the factor of country regulations will still get tightened. Major countries like the United States, United Kingdom, Malta, Australia, etc have accepted Cryptocurrencies. Thus, many business people and startups are accepting cryptos as their payment. So cryptocurrency trading becomes prominent among investors and traders across the world.

What is Cryptocurrency Trading?

As the name suggests, cryptocurrency trading is a platform where you can trade a wide variety of popular crypto assets. Here you can trade cryptocurrencies by using your fiat currency or digital currencies. Most people crypto trading for more benefits and profits in a short time. It is also considered as one of the best opportunities to make more money using cryptocurrencies. But there are also other profitable ways to earn cryptocurrencies easily.

If you are a newbie in crypto trading, then you must know to trade cryptos without being scammed. Before that, you must know…

Where to Trade Cryptocurrencies?

You can trade digital currencies in any of your desired crypto exchange platforms. Currently, there are lots of cryptocurrency exchanges available for trading purposes. Choosing the right crypto exchange will help you to perform secure trading and reap the profit at the right time. While choosing the crypto exchange for trading, you must consider the below trading features.

  • Liquidity
  • Margin trading
  • IEO module
  • Multi-currency support
  • Fiat trade pairs and crypto trade pairs
  • Live trading chart
  • Live crypto price tickers
  • Payment gateways
  • Crypto wallet

These features will determine the quality of the exchange platform for crypto trading. We will also suggest some of the best and popular cryptocurrency exchanges that have some good trading features.

  • Coinbase
  • LocalBitcoins
  • Binance
  • Paxful
  • Remitano

Thus, you can select any of these crypto exchange platforms for trading cryptocurrencies securely without any hassle.

So, How you Can Trade Cryptocurrencies?

You might be a well-experienced stock market trader or a beginner who doesn’t know how to trade cryptocurrencies. Stock market traders are experts in technical analysis. So they don’t need to study trading fundamentals. If you are a newbie, then you must learn some basic terms to gain knowledge of how to trade cryptocurrency.

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(image source: medium)

After learning these basics, you are almost ready to trade cryptocurrencies. To perform crypto trading, you must select the best crypto exchange and deposit a certain amount of fiat money or crypto from your online wallet to the exchange. Then you need to follow the below steps for crypto trading.

  1. Create an account by providing the required details on the crypto exchange.
  2. Do KYC/AML and Verify it.
  3. If you have a fiat currency, then you need to create a payment channel for your account.
  4. Verify your identity in the exchange. Usually, exchange platforms ask for this information because of AML policies. The other reason is for security purposes and protects their exchange from anonymous users.
  5. Deposit funds.
  6. You can deposit your funds to your account on an exchange or use a platform to buy cryptocurrency.
  7. Then you need to observe the prices of cryptocurrencies and crypto pairings available on the exchange for the trade.
  8. Then select your desired type of cryptocurrency to trade.
  9. Then you can place buy/sell orders by filling in the amount and bank details.
  10. After placing the order, the exchange platform finds the right seller/buyer to match orders.
  11. Once the exchange finds a suitable vendor, it matches with your trading order and completes the trading process.

Thus, by following these steps you can easily trade cryptocurrencies in any kind of crypto exchange. But the crypto exchange platform charges a certain amount of fee for every successful trading. It usually ranges from 0.1% to 0.5%. Because daily cryptocurrency trade volume is more than $55 billion.

If you are investing in crypto, you can invest in two ways. Such as short-term investment and long-term investment. Now, you will have a question in your mind like…

Short-term or Long-term – Which one is Best for Crypto Trading?

Short-term crypto trading is mostly preferable for traders. They will buy a popular crypto asset to sell soon in the market. This can be anything from days to a few months. Users will buy a particular cryptocurrency because they think its price will grow shortly. The main benefit is the chance to make a high profit in a very short period. Because the price of the cryptocurrency will fluctuate within several hours. The fiat currency market can’t provide such fluctuation. because prices only fluctuate about 1% per day.

People often prefer short-term crypto trading with popular cryptocurrencies. Such as Monero, Bitcoin, Ethereum, litecoin, or Dash. These cryptocurrencies have great demand in the marketplace. so you can easily trade these cryptocurrencies. On the other hand, volatility is a major problem in the crypto market. Also, you need to spend a lot of time to analyze the crypto market before performing short-term trade.

Long-term crypto trading is investing your money in crypto for more than a year or a decade. Many startups, entrepreneurs, and business class people will prefer long-term crypto trading. The major benefit of long-term investment is, you don’t have to make a technical analysis with complex crypto trading charts. Just you need to buy your desired cryptocurrency and wait. Then, check the price and sell your crypto at the best market price.

You can buy cryptocurrencies for small amounts and hold them for a few years. For example, many people invested in Bitcoin for $1. In 5 years, they had an ample amount of profits over their initial investment. So, both ways of crypto trading are the best for making more profits. Thus, choose the right way of investment and start trading the cryptocurrencies.

Future of Cryptocurrencies

In the crypto industry, from the year 2014-2015 when cryptocurrency markets were stagnating. According to Coinmarketcap, the crypto market lost value by around 75%. In January 2018, the cryptocurrency market reached its highest peak and made more profits for the investors. The price of Bitcoin reached $20,000 and renowned as the best-performing cryptocurrency of the decade. While comparing both these scenarios, Bitcoin is the most promising and popular cryptocurrency. As of now, only a few countries like Malta, the United States, Switzerland, Australia are accepting bitcoins and other cryptos. In the future, other countries will come forward and accept Cryptocurrencies. One ideal example is, major Countries like Mexico, Thailand, South Africa, South Korea are taking necessary steps to make bitcoins and other cryptocurrencies legal in their country.

Wrapping up

Cryptocurrencies will be the future of this modern digital world. Many people will use digital currencies for their business payments. There will be a huge demand for cryptocurrencies in the upcoming years. So, start trading the cryptocurrencies on your desired crypto exchange platform and make more profits. I hope this guide has given you an idea for your question: how to trade cryptocurrencies?. However, choose the best crypto exchange and the right investment way for trading the cryptocurrencies.