How to start Crypto Trading

Start crypto trading

 Cryptocurrencies have grown into an asset class that offers you the opportunity to invest and earn decent returns. The asset class has gained enormous popularity in recent years. To start trading, you need to create an account and you can only invest Rs 100 in the beginning.

One of the easiest ways to participate in the crypto market is to use an exchange. There are several well-known large custodial exchanges that allow users to set up wallets, buy cryptocurrencies, trade them, and sell cryptocurrencies back to fiat. The main disadvantage of custodial exchanges is that they technically hold your cryptocurrency for you, just like a bank. Just as the 2008 financial crisis exposed the inherent risks associated with third-party holding of funds, exchanges have seen numerous hacks that have resulted in the loss of cryptocurrency funds. A wallet controlled by an exchange puts you at risk of the exchange being hacked, accidentally shutting down, or becoming a scam.

Now that you have some cryptocurrency, it's time to trade. A one-to-one exchange service is a good place to start, but be warned — this convenience often comes with a hefty fee. Make sure you get the best deal by comparing rates in real time. First, let's do a simple transaction from Bitcoin to Ethereum.

Crypto trading tips

 

However, similar to trading stocks and commodities, crypto trading has risks and pitfalls. To profit from crypto trading in the long term, market enthusiasts need to develop strategies that make trading fun and safe at the same time. First, let's take a look at strategies that can help you earn big returns.

It might be a good idea to understand how cryptocurrencies work before diving into crypto trading. Cryptocurrencies are digital assets that run on the blockchain. Blockchain technology stores a ledger of every cryptocurrency transaction on every node that powers the blockchain. Nodes are computers that connect to the Bitcoin network to mine Bitcoins. If any of these miners try to enter the wrong transaction, they will be voided by the correct ledger.

The information presented here is really worth a read for any new crypto trading beginner. Since I'm also new and planning to get into cryptocurrency trading, I personally thank you for this guide. Setting a realistic target and stop loss along with proper encryption selection is my summary of this great article.