The act of speculating on cryptocurrency price movements using a CFD trading account , or purchasing and selling the underlying coins , is known as cryptocurrency trading . Here is the ultimate guide for you if you are thinking about starting trading in cryptocurrency and are a beginner .
Step 1. Make a cryptocurrency Brokerage Account
Some of the famous and best brokers for trading in cryptocurrency according to December 2021 are:
- Interactive Brokers.
- Charles Schwab.
WazirX is India’s top most crypto exchange platform . It is secure and trustworthy with a lot of potential investors using the platform . Setting up a brokerage account is the first and foremost step for trading in cryptocurrency . Setting up these accounts is very user – friendly . It is just like setting up any other brokerage or bank account . A cryptocurrency broker is a company or individual that works as a middleman between cryptocurrency markets to enable cryptocurrency buying and selling .
Step 2. Fund Your Crypto Account
To start trading , you have to fund your account . Add money to your wallet . Withdrawals and deposits for buying and selling crypto respectively should be done through/ in same account . Send a wire transfer , connect a third-party banking account, or set up a direct deposit to fill your account . Instead , you can use cash to purchase Bitcoin via exchanges or other services .
Step 3. Select The Cryptocurrency You Want to Invest In
Not all cryptocurrency are same , you should make sure that the crypto you are investing in is in the best Interest: The Cost of Borrowing Interest is the price you pa for you and is suitable for you .
Seven of the best cryptos to invest in for December are :
- Bitcoin ( BTC )
- Ethereum ( ETH )
- Solana ( SOL )
- Binance Coin ( BNB )
- Polygon ( MATIC ).
- Avalanche Token ( AVAX )
- Kitty Inu ( KITTY )
Cryptocurrency investment is risky . Plus, with so many options out there it might get confusing for you to pick one .Only invest the amount of money you can afford to lose . Try to research as much as possible and then focus on the cryptocurrency advised by the experts like Bitcoin , Ethereum etc .
Step 4. Choose a Strategy
Picking the right digital exchange platform and the right cryptocurrency plays an important role in choosing the right strategy . The goal of a trader using this strategy is to profit from intraday price fluctuations in a cryptocurrency of his choice .An effective strategy is to divide the money you want in small amounts and invest in different cryptocurrencies instead of spending all of it on a single one . Choose a trustworthy exchange with low fees .
Step 5. Store Your Cryptocurrency
Here are some tips for you to safely store your crypto :
- Keep the majority of your cryptocurrency in a cold wallet because it’s the safest option .
- Use a hot wallet to store smaller quantities of cryptocurrency that you intend to trade .
- Keep a physical record of your crypto wallet recovery phrases .
There are plenty of ways for you to store your cryptocurrency safely . Among those , the first one is through paper wallet . You can save your bitcoin / other cryptocurrency in bitcoin and cryptocurrency wallets . They are also a secure place for your digital assets . You can even use a hardware wallet – also called cold storage since it is also considered to be very secure .
Cryptocurrency market operates in a very different way than other traditional or financial markets .Trading in cryptocurrency is filled with risk as well as profit if you take the right steps . Most crypto exchanges even allow traders to trade all day. This is what is attracting a lot of young people towards the crypto industry . Although India may tighten the norms regarding cryptocurrency , it would still be legal .
Bitcoin can even be purchased in fractions. You can even purchase some cryptocurrency for money as low as Rs. 100 . Cryptocurrency market hours are open 24/7 and 365 days unlike many other markets . Crypto is not traded on a regulated exchange .Traders can even buy and sell crypto without any limit and trade at any time .