Cryptocurrency is traded massively in the present world due to its speculative nature. The blockchain market itself has made great progress in the previous decade. There are as many as 68.24 million blockchain market users in the world. Moreover, the cryptocurrency with the highest market share, Bitcoins, has an enormous market capitalization of 1010.21 billion USD. Additionally, with the growing popularity, Bitcoins are gaining popularity among companies as a way to accept payments from customers.
Many popular companies in the world are now accepting and promoting bitcoins as a cashless way to trade and store money. Some of the most popular brands accepting Bitcoins are Starbucks, Microsoft, Newegg, and Overstock. Apart from that, Cryptocurrencies are one of the most secure ways to store money. Cryptocurrency wallets have evolved to be very secure in the past few years. These cryptocurrency wallets can support storing multiple cryptocurrencies at once. Hence, it becomes impossible for someone to steal these cryptocurrencies from your wallet.
Elimination of banking fees is another great feature of trading with cryptocurrencies. There are many types of fees charged by the banks, and rates are usually very high. Although cryptocurrencies exchange does have the “maker” and “taker” charges, these are low as compared to banking fees. Moreover, there is no minimum balance in the cryptocurrency wallets, and you are unlikely to be charged for not keeping a minimum balance. There are no maintenance fees in the cryptocurrency wallets as well. This makes cryptocurrency transactions much chapter than bank transactions and even stock transactions that are heavily regulated.
Hence, this makes cryptocurrencies one of the best assets for trading. If you want to trade crypto and still unsure about how to get into the cryptocurrency market, then this article is for you. In this article, we are going to list the best way to trade crypto. These simple steps will guide you through your way to making your first cryptocurrency transaction.
Step 1: Join a Cryptocurrency Exchange
To trade cryptocurrency, the first thing you need to do is to create an account at a cryptocurrency exchange. Cryptocurrency exchanges are places where cryptocurrencies are traded. It is a platform where many cryptocurrencies are bought and sold. You can easily purchase cryptocurrency on this platform with fiat money or with some other cryptocurrency. You can also pay on these platforms through credit cards. These cryptocurrency exchanges play a very important role in the blockchain market. There are generally two types of cryptocurrency exchange, namely centralized and decentralized.
A centralized cryptocurrency exchange is an exchange in the control of your cryptocurrency that remains in the hand of the exchange. On the other hand, it is a decentralized exchange; you have complete control of your cryptocurrency. A good cryptocurrency exchange is likely to provide you an option to trade with multiple cryptocurrencies. There are many great cryptocurrency exchanges in the world. Some of the best cryptocurrency exchanges are Coinbase, Poloneix, Binance, Bisq, etc. These cryptocurrency exchanges have some great features and a beginner-friendly interface to make it easier for the new trader to trade in the blockchain market.
Step 2: Chose a Cryptocurrency Wallet
Signing up for a cryptocurrency wallet is an essential step towards trading in the blockchain market. Cryptocurrency wallets are where cryptocurrencies are stored. These wallets enable you to store your money safely and securely so that it becomes impossible for hackers to store it. However, you also must remember the password for your cryptocurrency wallet since many wallet companies won’t store your password. Hence, there is no forgot the password button to recover your password.
There are many types of cryptocurrency wallets in the market as well. Some of them are hardware wallets, mobile wallets, desktop wallets, and web wallets. Most of the cryptocurrencies in the market now also have their official wallets. Additionally, there are many multi-currency wallets in the market as well if you want to trade in multiple currencies. Some of the best multi-currency wallets in the market are Exodus, Coinomi, and the Jaxx Wallet. Apart from that, popular cryptocurrency exchanges like Coinbase also have their built-in cryptocurrency wallet to store and trade cryptocurrency simultaneously.
Step 3: Do research about the Blockchain market
After choosing the best cryptocurrency wallet, the next step is to research the market before trading. This step is true if you want to trade in any asset in the world. Doing research about the blockchain market and knowing the fundamentals is very important before actually trading in cryptocurrency. If you don’t know much about the market and you start trading, you might end up making huge losses. On the other hand, research-based decision-making has helped numerous traders in many different types of the market to earn a regular income from the market.
Additionally, many websites on the internet can provide you all the information you will need in the Blockchain market. One of the best websites for the research is Coinmarketcap. The website enables you to do research and monitor many different cryptocurrencies in the world. Its homepage has a list of many different cryptocurrencies with their current value and their performance in the past few hours. It also has amazing information on its home page itself. You can also learn about the cryptocurrency market by going into the learn section on the website. After you have researched the blockchain market, you can finally start investing.
Cryptocurrencies are highly speculative assets. There are many advantages of trading in the blockchain market over any other form of assets in the market. Some of them include security and low transaction fees in the market. The first thing you need to do to start trading in the Blockchain market is creating an account with the cryptocurrency exchange. You also need to create an account with a wallet where you can store all your cryptocurrency.
Some cryptocurrency exchanges will also provide you inbuilt wallets. However, you can select the wallets you think are the best fit for your needs. Another important factor to keep in mind is to do proper research before trading. The above simple steps will help you to start trading in the Blockchain market.