It is about a decade since cryptocurrency revolutionized the fund-raising and investment world. A number of investors could not be more contented as billions of dollars has been raised. Those who are yet to go with the increasing flow arising from the impressive results of cryptocurrency are seeking guides to help them get in. So if you are among the several fascinated by the idea of cryptocurrency and the ways of trading cryptocurrencies such as Bitcoin or Ethereum, this article is a guide you need to get in and settle in. Below we will discuss what you should know about crypto trading.
Crypto Trading, What Does it Mean?
Cryptocurrency trading is simply referred to as the interchanging of cryptocurrencies. For instance, Bitcoin or Altcoin can be traded for USD. To understand how this works better, cast your mind to how the foreign exchange works.
In crypto trading, you can be involved in the crypto market without having to necessarily be into mining. Also, reports show the rate at which cryptocurrencies have skyrocketed in recent times.
Going further, for the purpose of trading crypto, there are currently over 1,500 coins in existence and you can purchase many of the coins. Having said that, let us take a look at ways of owning crypto.
Where Can I Buy Cryptocurrency?
The concept of crypto trading as explained above thrives on the exchange of cryptocurrencies. Crypto exchanges are classified into two which are the decentralized exchange and centralized exchanges.
In decentralized exchanges, trading is peer to peer and automated. They operate under a trustless society driven by smart contracts- meaning that for maximum security, your cash can be stored in your private and personal wallets. But when using decentralized exchanges, you should apply cautiousness in order to avoid losing your private keys as lost of keys would result in loosing your funds.
Centralized exchanges on the other hand refer to having your funds stored up with reputable providers. Centralized exchanges, unlike decentralized exchanges, do not require the use of private wallets as such it eliminates the risk of losing your funds in case you forget your private keys.
You can also refer to our previous article on how to buy crypto on Bitmama.
What You Should Watch Out for When Buying Crypto
Buying crypto can be discovering particular if the coins are new to the crypto space. So it is of utmost importance that you do some research to avoid making mistakes in your purchases. Gather as much information as you can on the coin you are buying, get yourself up to date on news coming out of the blockchain and crypto space, watch out for independent ratings. Essentially, closely look out for changes in price so as to understand the fluctuations in prices which will enable you to set out a favorable time to sell out. As a result, losses are lessened and profits are protected.
Where is The Best Place To Store My Crypto?
Selecting a suitable place to store up your crypto in crypto trading depends largely on what your priorities and intentions are. Basically, there are two types of wallet for stopping cryptocurrencies which are the cold wallet and hot wallet.
Hot wallet are useful if you want to regularly access your cryptocurrencies for the purpose of making a seamless transfer of funds or completing transactions.
A cold wallet is however useful if your aim is to store your crypto for a raining day as your cryptocurrencies would be stored offline.
Ways To Learn Crypto Trading
There are quite a few ways of learning how to trade. One of which is learning how to trade yourself by using popularly known coin (Bitcoin) and a reliable exchange such as the Bitmama Exchange. Other options are getting yourself a mentor to tutor you or register for a proper crypto trading master class to ease your journey into the crypto trading world.
To sum it up, crypto trading is not as daunting as it seems. With understanding the rule and fluctuations in coin prices, familiarizing yourself with up to date news, consistently watching the rise and fall of cryptocurrency prices, having a check and recheck your numbers before making a trade and other things as discussed above, then you would be good to go.
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