In recent times, the cryptocurrency market cap has skyrocketed to 300 billion U.S. dollars and there are over 1500 types of crypto coins for making investments. It’s no surprise that a greater number of people from across the world are eager to join the riches of the industry.
However, the complex nature of cryptocurrency makes it complicated to start crypto trading. The process is quite different from fiat exchanges trading.
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If you find to ease your way into the world of cryptocurrency, look for the ones that accept fiat currency. It allows you to sign up for an exchange, deposit your money, and you’re well and truly on your way. Another best part is that you can get off the mark by using your debit or credit card, but you might have to pay a higher fee for that. There are others that allow wire transfers too.
Your bank account often comes with a debit or a credit card, which you can use to put in and take out as much as you want as frequently as you wish. This is why most of the crypto traders opt for this option.
On the other hand, when it comes to cryptocurrencies that do not allow you to use fiat money or even regular money, the process is a lot lengthier. You can start with buying any of the top cryptocurrencies like Bitcoin and you’re on your way to make the trades at the exchange. The process starts with acquiring an account at the exchange that accepts fiat. You may also get off the mark by opening a wallet to purchase Bitcoin in a peer-to-peer way and then transfer it to a crypto-only exchange. The process may seem hard to understand for many but you have to master the process before joining the race in the world of cryptocurrencies.
- Choose the Right Trading Platform
Much akin to fiat finance, the road to investing cryptocurrencies begins with the selection of the right trading platform. Simply register yourself for an account and deposit some money, the next thing you would be doing is trading in your favorite cryptocurrency. Some of the most favored crypt trading platforms are Bittrex, Poloniex, and Coinbase. All of the above-mentioned three websites are different in many ways as their terms of service are not identical and they also use different trading platforms. However, it is always a great practice to do your bit of research before choosing a trading platform. There are around 200 coin exchanges whose daily trade volume has shot up to a staggering 3 billion U.S. dollars, according to statistics prepared by Cryptocoin Charts.
Reliability is a factor that is very common with most of these platforms. We have seen in the past that hacking attempts had a negative impact on the trading that resulted in major losses for the crypto traders. And this hasn’t happened just once. There have been other instances where crypto exchanges discontinued their operations without any prior notice which left traders at a total loss. We would recommend you to trade only at the most reliable and renowned crypto exchanges for the best results.
- Choose a Wallet
When you exist in a trading world with so many exchanges around, the first thing you should have is a wallet. This would allow you to easily transfer your funds between different exchanges. You may also use wallets to store your assets at different exchanges. Some of the most renowned wallets are Bitcoin Core, MyEtherWallet, Dash Core, Ethereum Wallet, and Litecoin-QT. You may also opt for multi-currency wallets including Exodus, Coinomi, and Jaxx Wallet.
- Use Technology Your Best Partner
Technology is an integral part of modern-day trading. It stays the same at the crypto exchanges. The CryptoIndex 100 is a prime example of how the latest technology has simplified the complicated crypto trading for the rookies. It is an automated trading index that lets investors keep themselves away from high volatility. It also stops them from getting exposed to high-risk positions for their investment portfolios. This all joins together to help the investors save big on their investments.
It’s a long and hard road to success in any form of trading around the world. A little dedicated research towards everything we’ve discussed can go a long way into guaranteeing that high risk does indeed result in high reward.