I will start by explaining what the term crypto currency means, how to trade crypto Currency, what you should know before trading with crypto Currency, getting started with crypto Currency trading, and more.
Alright let’s get to it!
CryptoCurrency:
Image CreditThis is majorly any kind of peer-to-peer digital money powered by the Blockchain technology. Since the emergent of Bitcoin in 2009, more than hundreds of cryptocurrencies have been created, all offering different advantage and disadvantage compared to the Bitcoin. The Blockchain is based principles of cryptography, leading to it name “cryptocurrencies”. The cryptocurrency is also an encrypted digital currency operating independently of a central bank.
Cryptocurrency Wallet:
This is a place where you can store coins encrypted with passwords (i.e. as equivalent as storing money in the bank)How to trade Crypto Currency
First to be able to trade with CryptoCurrency you need to have the(1) A CryptoCurrency wallet
(2) A CryptoCurrency exchange to trade on.
Investing in CryptoCurrency:
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To invest in cryptocurrency that is buy/sell/trade, you need a couple of great options you can choose from.
Each option has its pros and cons, but, only an exchange-broker-wallet hybrid like Coinbase/GDAX allows one to trade and invest directly using a single platform. This article will focus majorly on that option due to the fact that it’s easy to use by beginners.
o An exchange-broker wallet like https:coinbase/GDAX (which allow customers to buy/sell/trade cryptocurrency.
o An exchange to buy coins on and also a wallet to store this coins in.
o The GBTC trust as sold in the stock market.
o A Cryptocurrency IRA.
Cryptocurrency: The Benefits of Investing
For a great number of persons investing in cryptocurrency, Cryptocurrency is another way of making profits in a short time. Bitcoin is the major pull in to cryptocurrency, this is because it has lured hundreds of thousands of persons to get involved over the years.Carrying massive cash around is very risky making crypto very interesting. The mere fact that you could carry millions of dollars around on a hard drive is very handy for some people.
Cryptocurrencies are untraceable and decentralized. Hence when you trade or exchange your cryptocurrency it cannot be traced back to the buyer/seller.
Facts of Cryptocurrency before you Start trading with it
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Below are a few but important things you need to know before starting trading Cryptocurrency.
- A Cryptocurrency exchange is not part of the conventional stock trading exchange. As stated above you could use coinbase and also use related GDAX (which is the pro version of Coinbase but with lower fees
- As a beginner you might prefer to trade cryptocurrency on the stock market GBTC (it’s a trust that owns Bitcoin and sells shares of it) trading with this hinders you trading cryptocurrency directly. The main Bitcoin in 2018 is the GBTC trades. Note: - Cryptocurrency trading is a round the clock stock trading market, unlike the traditional stork trading market.
- Well to my own view I think the easiest place to buy sell and trade cryptocurrency such as Bitcoin, Ethereum, Litcoin, and Bitcoin Cash is the Coinbase.
- Also know that the cryptocurrency market would be extremely volatile in 2018. That is you could make great fortune trading whether it is in Bitcoin, Ethereum, and others, and also lose it in one false trade. But if you are only trading your coins on one market Market cap the risk of losing totally everything is slim.
- You can trade and also invest in Cryptocurrency
- You can also use it for transactions
- You could mine those coins as well. To know more about mining see related works before testing it.
Getting Started with Cryptocurrency trading
Note:-
a. A starter should always start by choosing which company that offers an exchange and wallet. Hence a good start to cryptocurrency trading should start with the most popular site https://Coinbase.com. The Coinbase offers a single platform for a Bitcoin wallet, Bitcoin Cash wallet, Litecoin wallet, Ethereum wallet and more.
After you master coinbase, you are free to proceed to using GDAX and other exchanges like Bittrex, Binance, and the rest.
b. If you don’t understand certain tax implications to trading cryptocurrency, then tread very carefully. You could consider sticking with USD trading until you have fully grasped the concepts of tax implications on trading with cryptocurrency. To learn more on cryptocurrency tax implications see https://cryptocurrencyfacts.com/the-basics-of-cryptocurrencies-and-taxes/
c. Sign up for Coinbase on https://Coinbase.com to create a digital currency wallet where you can securely store your digital currency.
d. Then you need to buy Bitcoin, Litecoin, Ethereum (all trading USD cryptocurrency). You could also sell your Cryptocurrency trading’s along the way back to dollars (USD)
TIP:-
I strongly suggest you use a bank account and don’t use a credit or debit card as the charges are high with the latter an the former.A General Overview: What Coinbase Expects Form You
o Coinbase will ask you for more personal information, there is actually no way around this. Don’t get scared see this questions they are totally secured.
o If you use your Bank account, Coinbase will approve the paring in about 3-5 days
o Coinbase will want you to know that there are limits to how much you can sell/buy in a week. And these limits will increase quickly over time as you trade on Coinbase.
o There are fees attached with trading on Coinbase. These fees will decrease as your trading increases.
o You could set up a 2-factor authentication. This will help you in securing your account by sending a code each time you log in.
o You may not have to buy the whole coin, but you could get fragments of these coins. The price of Bitcoins is currently high and so you should consider which one is most likely to increase in value.
o When buying a coin take the extra pains to review the decimal places, as a single decimal place is money in Bitcoin.
o You need to download the app either for system or for your mobile devices. The app will help you in monitoring the process of your trading.
o Always see alerts as they will help you decide when to buy or sell you Cryptocurrency.
Note :-
Once you have figured out Coinbase, try moving to GDAX. It’s like the better version of Coinbase with lower fees.Keeping Your Cryptocurrency Safe
The best way to keep your cryptocurrency is by having a physical copy of it. Cryptocurrencies can be placed in to a hardware wallet, allowing for crypto keys to store locally on a hard drive. This process is also known as being offline. You could even go the extra mile of storing your pins in a safe just in case a dire need arises.
https://wikipedia.com/cryptocurrency
https://cryptocurrencytrading.com
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