With so much talk about cryptocurrency these days, you probably want in on some of the action. Read on for some simple tips to help you trade cryptocurrency.
If you’re keen to start trading Bitcoin, Litecoin, and Ethereum, you will need two things:
- A cryptocurrency wallet (this is where you store encrypted passwords that represent coins)
- A cryptocurrency exchange (this is like a stock exchange)
Let’s get started.
Unlike a regular stock exchange, a cryptocurrency exchange is open 24 hours. For beginners, we suggest using Coinbase as your cryptocurrency exchange. You can buy, sell, and store Bitcoin, Ethereum, Litecoin, and Bitcoin Cash on a single platform with Coinbase.
Once you’ve mastered Coinbase, you can move on to GDAX and other exchanges like Bittrex, Binance, or Kraken.
2018 has been a volatile year so far for cryptocurrencies. No matter what you may be trading, fortunes can be lost and found in minutes. Spread out your investments to reduce your risks and choose a company with a good reputation. Instead of trading in too many currencies, start by trading prominent cryptocurrencies like Bitcoin and Ethereum to reduce your chances of losing everything overnight. Once you have done that, you could try trading these currencies for other cryptocurrencies.
You may have also heard of ‘margin trading’, but it’s best not to try that unless you’re an expert and know exactly how it works. With so much volatility in the market, it’s best to be extra careful or you could lose all your money in an instant.
If you have time, track the latest cryptocurrency news, ranking and indicators daily to help you make better decisions. And don’t trade with money you can’t afford to lose. As always, do some research first and happy investing!
If you are interested to get access to Wei Siang’s multi-asset online trading knowledge hub that offers financial analysis, news, industry research, international events and more, you could check out his telegram channel: https://t.me/Pixeltradealert