Crypto trading is a very attractive, lucrative, and promising business activity. If you aim to start your trading adventure, here are some hints at having in the pocket before beginning trading.
How to Start Trading Cryptocurrencies?
Suppose you plan to buy and sell cryptocurrency without using derivatives. In that case, you can open an account on any crypto exchange platform, such as Binance (currently the largest exchange in the world).
After opening your account, you need to transfer currencies using a bank card or wire transfer. This step is generally chargeable, and its cost varies according to the platforms.
After transferring your euros (dollars or other currency), you can make your first transaction! To do this, select the crypto-asset of your choice (for example, BTC, ETH, or Litecoin), and exchange it for your euros. Once this step has been completed, your crypto-asset will be directly transferred to your cryptocurrency wallet.
To store your crypto-currencies, you can decide to leave them in your wallet connected to the exchange platform. However, this is not recommended because they can be the victim of attacks, and you could lose all of your cryptos- assets.
It is then recommended to transfer your assets to another wallet (for example, your ETH to a Metamask wallet) using the Ethereum blockchain network. For even more security, you can acquire a Ledger key which will allow you to store your crypto-assets “cold” (in other words, this means that they are kept “offline” and do not, therefore, cannot be stolen by hackers).
When you want to resell your crypto-currencies, perform the reverse operation: exchange your assets (for example, bitcoins) for fiat currency (for example, euros).
Cryptocurrency Trading Through Derivatives
Cryptocurrency trading involves using derivatives to profit from increases or decreases in a cryptocurrency value. We mainly find futures contracts and options that, in the first place, are used to hedge market variations but can also be used to speculate on the future value of a cryptocurrency.
What is Automated Crypto Trading?
Did you know that you can start trading on the crypto market without a thorough knowledge of trading strategies and with no need to be non-stop present in front of your computer?
It’sThanks to the automated trading software specially designed to trade on your behalf, it’s possible after you have set all the necessary parameters in the system.
This excellent tool is suitable for novice and professional traders. But to make out most of the trades, you must opt for reliable and effective software.
To do so, read forums and software reviews, which are great information sources. For example, if Biticodes software is the one that attracts your attention, make sure to read Biticodes review and see what they have in store for you.
Additional Tips on Crypto Trading
It is strongly advised to start trading with a demo account to familiarize yourself with the various derivatives, indicators, and trading tools if you are not an expert.
The leverage effect produces amplified variations. The losses can be substantial in the event of a strong reverse movement in your position.
Finally, conduct market analysis and set up a trading strategy adapted to your risk profile before you start.