Cryptocurrency can be intimidating, and it is not always easy to know how to start trading if you are brand new to the entire crypto scene. Even if you know the very basics of how a cryptocurrency works, that does not mean that you know how to trade it.
If you want to get started, then here is a breakdown of what you will need and how it all works.
If you are still not completely clear on what cryptocurrency is or how it works, then you need to educate yourself on the concept. The more you know about the basics of crypto, the easier it becomes to understand how it can be used, what its limitations are, and how to trade it.
Remember that different currencies can operate differently, too, with some being more popular than others. A few even have specific differences in how they are awarded and certain unique functions.
Choose a Cryptocurrency Exchange
You can’t buy cryptocurrency without a cryptocurrency exchange – a platform that allows crypto to be traded, bought and sold based on the current value of the currencies involved. However, there are many to choose from, and each one can be slightly different.
Many people turn to platforms like https://swyftx.com/ for being popular and versatile, as well as a good starting point for beginners. If you just care about trading crypto as soon as possible, then choosing a platform like this is often the best choice.
Set Up A Digital Wallet
A digital cryptocurrency wallet is vital for storing the cryptocurrency that you earn. Unlike an actual wallet, they store your assets as data, meaning that they need to be secure and protected.
Some platforms, like Swyftx mentioned above, have integrated wallets that allow you to easily manage your money without needing a separate wallet. However, you can still choose to set up another one if you would prefer to store any crypto that you do not plan to use for a long time.
Some wallets can be kept offline as a separate device, which many people use as a more secure and long-term storage method. However, if you plan to trade crypto often, then an always-online option is far more convenient and much harder to lose (since they are generally software and not hardware).
Fund Your Account
You will need something to start trading, whether that is real money or cryptocurrency. You can exchange one for the other on trading platforms, so do not worry if you do not have any crypto already – you can easily get some as soon as you are all set up.
There are three ways to buy and sell crypto:
- Trading cryptocurrency for another cryptocurrency
- Buying cryptocurrency with real-world money
- Buying real-world money with cryptocurrency
Any cryptocurrency that you buy or trade for will go into your digital wallet(s), while real money will go to your normal payment methods.
Once you are all set up, you can trade however you like! The right software can make trading much easier, but having the basic features is all that a new trader will need to get started…