How to Trade Cryptocurrencies (2020 Beginners Guide)
28 Oct 2020
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Trading cryptocurrency means to buy and swap flat money or cryptocurrencies for other cryptocurrencies, like how you would do with stocks.
Investing in cryptocurrency has become a big trend over the past few years, and with most cryptos recovering from the 2019 slump.
There is a lot of talk about how much you can make with cryptocurrency investments. Still, some people do find it challenging to understand how exactly you trade or invest in it. So here is a step-by-step guide on how to trade Cryptocurrencies:
Step 1. Get yourself a wallet
A wallet is just what you think it is, except its virtual. It is where you will keep all of the cryptocurrency that you buy. You may also store more than one type of cryptocurrency in there. A bank account can also be linked to your wallet, which makes money transfers much easier.
Step 2. Decide which cryptocurrencies you want to buy
Step 3. Finding the right site or "exchange" to buy and sell cryptocurrency.
There are a lot of sites (exchanges) out there that claim to be the best or most reliable. While there is some truth to their claim, we would recommend Coinbase for anyone just starting. Coinbase has an easy to use interface and even has a built-in wallet for those who like to keep their coins close to their exchange site.
Knowledge is power when it comes to cryptocurrency trading, and being able to see what is happening in the industry will give you an edge when it comes to buying and selling. Pay extra attention to any GPU (graphics card) news, as that is the primary tool for crypto miners.
Step 5 Always keep track of cryptocurrencies price.
All cryptocurrencies have periods where they are stagnant and don't change which can be comforting, but that all can change at the drop of a hat. Hence, it's essential to track your cryptocurrency daily. Cryptocurrency is an investment, so monitoring its price and comparing it to others will help you determine when is the best time to buy and sell.
Cryptocurrency is like any other investment and comes with the same risks, so always be aware of these before going all-in with it.
If you want to track your chosen cryptocurrency and compare it to others on the market. Use our crypto tracking service on our main page. We track all current cryptocurrencies and give hourly updates.