How to start trading bitcoin and other Cryptocurrencies
The cryptocurrency market is one of the most lucrative and thriving markets right now. Unintentionally created in 2009 after the 2008 global crisis; by a group of people under the alias Satoshi Nakamoto, the cryptocurrency market has risen to be valued at more than $1Trillion in a little over a decade. With the launch of the first digital currency, the world beheld a revolution and hasn’t looked back ever since.
The potential of the cryptocurrency market is endless and ever-expanding- it started with the fortuitous creation of one cryptocurrency (Bitcoin) and now there are more than 5000 cryptocurrencies working in the market. If you would like to consider, which is the best time to invest and trade in this market? I would recommend it is – ‘RIGHT NOW’
As the market is still a little new to most of the general population, investing and trading in the world of cryptocurrency might feel a little intimidating and a daunting task at first. That’s a wrong notion though, investing and trading in cryptocurrency is easier than ever before. With hundreds of exchanges, coins, and wallets, to trade in cryptocurrency all you need is a smart device, be it a laptop or smartphone or a tablet, and a good internet connection.
Here’s how to trade in Bitcoin and other cryptocurrencies:
Step 1: Get Knowledge
And of course, the most important task before stepping your foot in the crypto-market is to get a good deal of knowledge about its basic concepts and working. Definitely, we are not talking about becoming an expert overnight (that won’t let you practically trade though) but gather enough knowledge so that you could smoothly sail the crypto sea.
It is advisable to gather more knowledge while you have started trading as well, as one should never stop learning. Better to get in touch with an exchange, which cares as much for you as it cares for your funds, such as United Exchange.
Step 2: Get a wallet
The first and the most important thing you need when it comes to trading cryptocurrency is a WALLET- the place where you’ll store the cryptocurrency you’ll own. When it comes to wallets in the cryptocurrency world you have two options- hardware and software wallets.
Software wallets are mobile applications that connect with traditional banking accounts. Hardware wallets, on the other hand, store a user’s private key on physical hardware and are generally considered more secure.
Step 3: Connect a bank account
The next thing you need is a bank account to access funds for the purchase of crypto-coins of your choice – bitcoins or other cryptocurrencies. One can also use their credit or debit cards to use the funds in their accounts to buy cryptocurrency. Every method has its distinctive fees and prices, and it may take longer to process the transaction for some of the methods, depending on the location of the buyer, the bank, currency conversion, and other similar factors. It is generally faster to buy cryptocurrency through debit and credit cards as compared to transactions through the bank account.
Step 4: Join an Exchange
Exchanges are digital marketplaces where you can buy and sell cryptocurrencies. These transactions can be done through traditional currencies such as USD, INR, and cryptocurrencies such as Bitcoin and others as well. Exchanges, although the main service consists of providing a space for cryptocurrency trade, are not always the same. Exchanges provide different account options, charge different fees (for the same type of trading), and their reliability, as well as security, can also vary.
Step 5: Place Order
Now everything is set up and you just need to use the previous three steps mentioned to purchase the crypto-coin you want to buy. After purchasing an initial amount of cryptocurrency, you can start trading it for other cryptocurrencies as well as traditional currencies.
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