WHAT IS CRYPTO CURRENCY?
Although various forms of cryptocurrencies exist, all of them share one thing: decentralized and run using block chain technology. They are different. Crypto currencies have many benefits over the traditional financial system, including the decentralization of financial transactions:
Cuts most of the operational costs associated with banks.
Less expensive transactions that can be sent and received abroad.
Inflation or finite supply that is written into code no need to trust the Federal Reserve.
Financial derivatives such as trading strategies and loans can be coded directly into some Crypto currency block chains, eliminating the need for financial intermediaries.
Bitcoin is the most commonly used Crypto currency, and it is referred to as "digital gold." Bitcoin is basically a currency that serves as a means of storing money. Ethereum is the second-largest Crypto currency, with a market capitalization of $210 billion. Ethereum's block chain could be used by developers to build decentralized alternatives to traditional banking functions such as lending and trading.
TWO THINGS TO KNOW BEFORE TRADING IN CRYPTO CURRENCY
A Crypto currency wallet: For example, Atomic Wallet,MetaMask,Trezor, or even the wallets offered on exchanges.
A Crypto currency exchange to trade on: For example Coinbase,Bittrex, or Binance.
CRYPTO CURRENCY TRADING STRATEGY STEPS
Take a look at the 5 steps to trading Crypto currency.
Step 1: Make A Crypto Currency Brokerage Account
If you already have crypto currencies, you'll need to open an account with a Crypto currency brokerage. Coin base, Gemini, and eToro are among the best Crypto currency brokerages available. All three of these options have a quick user interface as well as a wide range of altcoins to choose from.
To open an account, you must provide your crypto brokerage with personal identification details, just as you would with a stock brokerage. When creating an account, you will need to include your Social Security number, address, date of birth, and email address.
Step 2: Fund Your Account
After you've signed up with a Crypto currency brokerage, you'll need to link your bank account. Most Crypto currency brokerages accept bank funding via debit cards and wire transfers. Wire transfers are usually the cheapest way to finance your account, and they are free on Coinbase and Gemini.
Step 3: Pick A Crypto To Invest In
The majority of successful Crypto currency traders put the majority of their money into Bitcoin and Ethereum. Since these crypto currencies shift more quickly than smaller altcoins, trading with technical indicators might be simpler.
Many Crypto currency traders invest a portion of their capital in smaller altcoins. While small and mid-cap cryptos are riskier than large-cap cryptos, they have a greater upside potential. Many tiny altcoins have risen more than 1,000% in a matter of months, making them appealing investments for risk-averse investors.
Step 4: Choose A Strategy
There are several trading metrics to choose from, and most traders recognize several factors when buying and selling Crypto currency. If you are new to investing, you can think about buying a Crypto currency trading course.
If you're a seasoned investor, you might even have a stock trading plan. Crypto currency trading strategies are similar to stock trading strategies. Elliott Wave Theory is a personal favorite trading technique that many traders employ. Since Elliott Wave Theory focuses on the psychology of market sentiment, it works especially well with risky assets such as crypto currencies.
Step 5: Store Your Crypto Currency
If you are actively trading crypto currencies, you would need to store your funds on the exchange in order to access them. If you want to keep your Crypto currency for the medium to long term, you can get a Crypto currency wallet.
There are two types of Crypto currency wallets known as software wallets and hardware wallets. Both are secure, but hardware wallets have the most protection because they store your Crypto currency on a physical device that is not connected to the internet. Many investors trust Ledger as a great hardware wallet brand to store their crypto assets on. If you're searching for a free software wallet, there are some options on IOS, Google Chrome, and Android.