Have
you finally made up your mind to invest in cryptocurrency? If yes, a very warm
welcome to the world of crypto, a very sensitive and volatile world it is. Starting
to trade cryptocurrency can be quite breathtaking and tasking especially if you
barely have knowledge of how it works. It is not advisable to invest in
cryptocurrency if you’ve not taken your time to study how it works and the
possible challenges to be expecting while trading. For cryptocurrency beginners
looking to acquire more knowledge about cryptocurrency trading, this article is
for you. In this article, we’ll discuss everything you need to know about
cryptocurrency trading. Let’s start off by defining cryptocurrency.
What is Cryptocurrency and
Cryptocurrency Trading?
Cryptocurrency
is a form of digital money that can be used to accumulate wealth. It is used as
a medium of exchange in financial transactions. Cryptocurrency offers the most
secured way of performing financial transactions. Cryptocurrency uses blockchain
technology to store and safeguard information and prevent hackers from accessing
the network.
Cryptocurrency
trading is the act of exchanging cryptocurrency with another type of currency
which is flat currency in most case. The value of cryptocurrency varies from time
to time and this is what really prompts its buying and selling. Basically,
traders would acquire coin at a particular price and sells when the value of
the cryptocurrency increases, from there profit would be made.
How does Cryptocurrency Exchange Works?
Basically,
cryptocurrency comes as reward to miners who successfully solve cryptogenic
puzzles. It is very difficult to mine cryptocurrency and that’s why traders buy
directly from cryptocurrency exchange platforms or from individuals willing to
sell theirs at an agreed price. To acquire cryptocurrency, you’ll need a
cryptocurrency wallet where you’ll store your coins. Each wallet has its unique
address which is what would be used whenever coin is to be transferred to your
wallet.
What should be your Capital when
Starting to Trade Cryptocurrency
Starting
to trade cryptocurrency might require much capital, well, the capital can be
flexible. It is advisable to have much capital so as to keep your trade going
every time. There is no standard capital required to start trading cryptocurrency
though.
Where can you buy cryptocurrency?
Purchasing
cryptocurrency requires much care. As a beginner, it is more advisable to
purchase your coin directly from cryptocurrency exchange platforms but most
importantly, do business with trusted platforms. Also, you can purchase your
coin from individuals willing to offer their digital currency for flat
currency. This can be quite risky but it’s the most common practices by
cryptocurrency traders.
How to choose a cryptocurrency Wallet
As
a beginner, choosing the right wallet is very essential. There are important
factors to consider when deciding what wallet to choose. These factors include:
·
Security: This is the most important factor to consider when
choosing cryptocurrency wallet. Wallets with advanced security option should be
your priority as this would give you assurance of safety for your coins.
·
User-friendly: Cryptocurrency trading can be quite
complicated. Sending and receiving cryptocurrency requires much effort. Beginners
should consider a user-friendly wallet where they can easily send or receive
cryptocurrencies.
·
Multi-currency support: Wallets that supports multi-currency
is better off for beginners especially for those looking to trade more than one
coin with a single wallet. This feature should be looked out for when choosing
a cryptocurrency wallet.
·
Reputation: This is also important when choosing a good
cryptocurrency wallet. Check online for reviews of popular cryptocurrency
wallets and compare them. Select the one with greater recommendation for cryptocurrency
newbies.
Best Cryptocurrency Wallets to Choose
There
are many cryptocurrency wallets available. As cryptocurrency beginner, it is
important that you go for best available cryptocurrency wallets with little
complication and strict-free policies. Here is a list of recommended wallets
for cryptocurrency beginners:
·
Coinpayment: Coinpayment is one of the most popular and trusted
cryptocurrency wallet available. It is a web-based digital currency wallet
where several cryptocurrency storage is supported. If you’re looking to trade
more than one coin in just a single wallet, coinpayments is an appropriate
wallet for that. Coinpayments charges lesser transaction fee. It is also a
safer online platform as it has integrated BitGo to provide secure online
wallet.
·
Edge Wallet: Edge Wallet is a user-friendly cryptocurrency
software wallet. Easily, users can send and receive cryptocurrencies. It also
supports multiple cryptocurrencies. This platform is secured with advance
security option which makes it so appropriate for cryptocurrency beginners.
·
Blockchain Wallet: Blockchain is known for its strong
security option. You can easily send, receive and store cryptocurrencies in
blockchain wallet. In addition, it is user-friendly and there is less
transaction charges to pay.
·
Coinbase: Coinbase is a web-based digital currency wallet which
offers easy accessibility. It supports most of the popular and most traded
cryptocurrencies. With Coinbase, you can easily send, receive and store
cryptocurrencies. It also features a strong security option.
Best Cryptocurrencies to Trade
There
are hundreds of cryptocurrencies available. Of course, we investors want to
make profit and that’s why we eye profitable businesses. Thinking of what
cryptocurrency to trade? Here is a list of best and recommended
cryptocurrencies:
·
Bitcoin: Unarguably, bitcoin is the most widely accepted and
traded cryptocurrency. It is ranked first in the list of cryptocurrencies. As a beginner, this is the best option for you.
Bitcoin can be used to purchase things online as it is accepted by most
merchants as mode of payment. Bitcoin is easy to trade as the supply chain
flows well.
·
Ethereum: This is also another well-traded cryptocurrency. It
is ranked second after bitcoin. Ethereum have attracted a lot of investors and
by record, it has been doing well. This will be a good choice for
cryptocurrency beginners.
·
Litecoin: Litecoin is often regarded as the twin of bitcoin. It
is the most promising cryptocurrency after bitcoin. It is also accepted by many
merchants but not to the level of bitcoin. It is a good option to go for.
Conclusion
Cryptocurrency is one of the fastest growing
technologies. It has recorded a greater number of investors over the years. If
you’re looking to invest in cryptocurrency, with this guide provided, you can
take a bold step into the world of crypto.
