The exciting world of cryptocurrency has enticed many people to begin trading, but are you ready to dip your toes in the water? Before we give you a few tips about this very lucrative area of trading – one in which a lot of people have made impressive profits – we will say that you need to have had some experience in currency or forex trading. We’re counting on the fact that you have some experience, but if not, there are plenty platforms where you can try your hand with demo money, so you get an idea.
So, let’s talk about trading cryptocurrency, with some handy tips that should help you along the way.
Check the Exchanges
The first thing you need to consider is which of the many exchanges that you are going to trade with. These are the platforms on which you buy and sell your cryptocurrency, and also keep track of the rises and falls, and you might want to look at Coinbase, which is a leading name, as well as checking out Bitmex Resources which is a clever site offering a wealth of help, information and trading data that – once you get to grips with it – you will find absolutely invaluable.
Make sure that the exchange you intend to use is readily available for your location; some countries have restrictions on cryptocurrency – and other – trading, hence you need to ensure you approach things with certainty.
Just as you are subject to an exchange rate when you change your money for a holiday abroad, so you are when you trade cryptocurrencies. This is because each – as with normal currency – has its own value, and this value can rise and fall thanks to various areas of influence.
Different exchanges will have different exchange rates, and also different fees for the work they do for you in actually performing the exchange. This makes it essential that you shop around and compare these rates so you get the best deal. Remember, this is a booming market and there are many exchanges to choose from, so we recommend you dedicate a good amount of time to your search for the right one.
No matter what platform you choose to use, the subject of security is always paramount when dealing in anything to do with finances or cryptocurrency. This is why we recommend you check out and use one of the bigger trading exchanges, as they are tried and tested and offer guarantees that others might not. Also, a strong word of advice: do not participate in trading on an open Wi-Fi connection; these are notoriously insecure and can be an easy way for someone to get into your account.
The above should serve as an introduction to the world of trading in cryptocurrency and we strongly recommend you read as much as you can about the process, and familiarise yourself with the terms that are used before you begin to trade your hard-earned cash! Meanwhile, good luck in what is an exciting new endeavour.