Several investors find cryptocurrency as a good asset trade because of its volatile nature. If you can study the market and analyze the trends, cryptocurrency will fetch you good returns. Most of the crypto traders would either want to collect bitcoins or try to earn in USD. Your portfolio can easily increase your USD value, but to increase bitcoin value is difficult. If you are actively involved in trading cryptocurrency, you may lose all your cryptocurrencies. Therefore many traders try to hold the bitcoins they have for a longer period.
Here are a few steps that will help you to easily trade cryptocurrency.
- Create an account for cryptocurrency brokerage
If you do not have cryptocurrencies, you will have to create a new cryptocurrency brokerage account. eToro, Gemini, and Coinbase are the popular cryptocurrency brokerages available in the market. In Particular, eToro is a great choice for beginners and a reputable platform to trade currencies, commodities, indices, crypto assets, and stocks. Click https://kryptoszene.de/broker/etoro-erfahrungen/ to know more about the eToro platform. They offer different altcoins as well as simple-to-use interfaces for the users. You have to provide your personal identification information to create a cryptocurrency brokerage account. Details like Social Security number, date of birth, address, email id, etc, have to be given for creating an account.
- Connect to payment options
After signing up with the cryptocurrency brokerage you chose, you will have to connect with the account of your bank. Several crypto brokerages offer both wire transfers and debit cards. If you are looking for the cheapest option for payment, you can select wire transfers. Gemini and Coinbase offer free wire transfers.
- Choose the crypto to invest
A majority of the crypto traders choose Bitcoin and Ethereum as the cryptocurrency for their investment. As these cryptocurrencies have more predictable movements than other altcoins, the technical indicators of these currencies will be comparatively easier. Several crypto traders devote a small fraction of their investment to smaller altcoins also. Even though the risk of smaller mid-market capital is higher than that of the larger ones, the overturned potential they offer is higher. Within months, many altcoins rose to 1000% attracting more investments.
- Find a strategy
Numerous trading indicators are available to be used while trading cryptocurrency. The majority of the traders make use of multiple factors while they decide to buy or sell cryptocurrencies. Most experienced traders have their own strategies that are used for trading stocks. The strategies used in stocks trading can be applied to crypto trading as well. Elliott Wave Theory is a popularly used strategy that targets the psychology and sentiments of the market, which is good for cryptocurrencies.
- Consider automated trading
There are several platforms that allow automated crypto trading. Trading bots will create a strategy that supplements your goals and fetches your profits. They come with neutral, conservative, and aggressive methods that are ideal for buying, selling, or holding your crypto assets.
- Storing cryptocurrency
Active traders will have to store their funds on the popular exchanges to easily access them. Get a crypto wallet if you are planning for a mid-long term investment or holding of the crypto coin. There are a software as well as hardware crypto wallets. Choose the one that is more secure and suits your needs.