As any person looking to get into crypto trading, you are aware of the revolution that cryptocurrencies have done to the world of finance. There are many perks to trading crypto and that’s why you’re looking to start trading too.
But you’re a beginner and you might be wondering where to begin. The answer is simple, you should begin at the beginning which means you’ll learn what a cryptocurrency is, what makes them so special, the basics of trading, and all the other things needed to start your trading journey. This article will walk you through it.
The thing about cryptos is that they’re virtual, you can’t touch or smell them. They exist only online and besides that they have value. You can use this value to make purchases, trade it for fiat currency and even swap it for another cryptocurrency. But you’ll need to make a transaction happen.
To make a transaction happen then you’ll need the 2 keys each crypto has. The first one is the public one and it’s needed to link the 2 parties together. Then you have the private one and it is there to confirm the transaction and record it on a virtual ledger. The second function of the private key is to give you access to your assets and that’s why it needs to remain private. All this is possible because of blockchain technology.
When it comes to the perks, besides lightning-fast transactions users can also enjoy anonymity which gives them a decent amount of security when it comes to trading online. Moreover, each user or trader is the master of their assets and no third party has access to them.
But the one perk that tops them all is the profit potential which is tightly linked to the volatility of each cryptocurrency. This volatility will have the value of a certain asset to drop or rise which is why traders buy assets with a low value and sell them when that value is high. Any additional tricks or advice will help you become a better trader in the future.
However, no one knows when the shift of value will happen and that’s why crypto trading is a risk. Now that you know the basics, it’s time to look for a trading platform. Besides this, you’ll also need a wallet, but once you’ve got a platform, you’ll be halfway there. The process of finding both can take some time, but it also takes time to become a skilled crypto trader.
Looking for a Platform
You can think of a trading platform as a place where all the traders meet to do what they do best. There are several of them available online, such as tradingplatforms.com, and they offer various things such as a day trading simulator and additional service. These are the ones that have a large client base and as this is the case they would have the best selection of features and tools for you to use. Just in case, go over the customer reviews to see if they actually treat their customers properly.
The thing that’s most important to you on such a platform is safety and security. Check the security measures this platform offers and don’t forget to go over its history. If it has a history of security breaches then it’s time for a new one. Hackers have breached platforms before and will stop at nothing to steal your assets.
When you’ve found the right platform, you can create an account and fund it. The next thing to do is buy your first asset, but you’ll still need to store it someplace. That’s where the crypto wallet comes in.
Looking for a Wallet
With all sorts of cryptocurrency out there, you shouldn’t be surprised that there’s a variety of cryptocurrency wallets available. They will come in all shapes and sizes and will have a variety of features at or disposal. Start with the popular ones first and see how they treat their customers. When you’re going over them, then you’ll notice that there are 2 kinds of wallets.
The hot ones are connected online which makes them perfect for trading crypto. You can also make purchases with them. But you’ll be a target because of the dangers that lurk online. Then you have the cold ones which keep you safe from all those dangers as they don’t share a connection with the Internet. They are made up of physical storage for assets and this is all they’re good for.
In the end, you’ll need to decide if you need a hot or a cold one. Just make sure you do enough research before you come to your decision. When you’ve got a wallet, you’ll have a place to store your assets. Then you can take your first steps toward becoming a crypto trader. The journey will be rough, but you’ll make it so long as you keep walking. Be mindful of the current affairs of currencies as you’ll need to adapt your trading strategy to the current state. Don’t be afraid to experiment.