The phenomenon called crypt trading is alive and well today. It all started with the crypto mania back in the day and now it’s a permanent currency in the world of finance. It comes with its perks and each one is a reason why more people get into trading.
You might be one of them and you might be looking to learn the art of crypto trading. But before you get into trading you’ll need to know the basics and this article aims at teaching them. The definition of crypto, trading as well as choosing a platform and storage.
What is Crypto?
The thing about crypto is that it is a currency, but a new kind of currency. It’s a virtual one. You can’t touch it or feel it, but it has value although it’s online. There are companies that accept such currencies and you can use them to buy and sell goods and services.
Lately many cryptocurrencies such as Bitcoin and Ethereum have seen a massive uptick in buyers, and others such as Dogecoin and Litecoin seem to be increasing in popularity. Besides these, there are hundreds more that are being created and put on the market for all to buy. However, not all of these are currencies worth buying (some might even be scams), and buyers have to be aware and check the security analysis of crypto projects they are keen on putting money into. After all, this is still a high-risk and high-reward market.
To make a transaction happen you’ll need the assistance of 2 keys. The public one is there to make a link happen between you and the business or user. Then there’s the private key which confirms the transaction and keeps a record of it on a ledger. It also lets you access your assets which is why it needs to remain private.
As a crypto user, you’ll remain anonymous to other users and businesses. No third party will have insight into your assets and thanks to blockchain technology they will remain safe. Transactions are quick and done in a matter of seconds.
Volatility is another characteristic of every cryptocurrency. This causes the value of an asset to go up or down which is why crypto trading can be risky. But if you play your cards right, you can enjoy the profit potential.
You can buy assets when their values are low and sell them when their values are high. This is a common practice when crypto trading, but it isn’t the only one. Once you’ve got enough experience you can see what works for you. Don’t forget to keep track of the current trends of your assets.
But regardless of which practice you go for you’ll need a trading platform to start with. You’ll also need a wallet to store your assets. With the basics covered, you can dive into the selection of a trading platform.
The Platform Selection Process
There are thousands of platforms to choose from online. They offer different kinds of features which is why you’ll need to do some research. Go for popular ones listed on https://tradingplatforms.com/uk/ as this will narrow down your search and shorten the length of the selection of process. Certain platforms are popular because they know how to treat their customers.
This doesn’t just mean offering the right features, as it includes helping them deal with a variety of issues. The one thing that you should always look for is the platform’s history. This will show you if it has been hacked or not and if it has, then you should find another one.
A crypto trading platform is a target for hackers because of its assets and if it’s still available after attacks then there’s a high probability that it hasn’t plugged the holes in its security. This means it’s unsafe for you. In short, always go for safe platforms.
Once you’ve got a platform, you can create an account. You would have to make conversions depending on the currency you’re using to estimate how much you can purchase and how much profit you can make from a sale. Take for example, a bitcoin to naira, or a Naira to Bitcoin converter; using one can help you get an estimate of how much your holdings will be worth in your country’s legal currency when you buy or sell your token balance.
Once you’ve made the conversion, you can roll some money into it as you’ll need it for your first buy. This will help you take the first step into the world of crypto trading. But you’ll also need a wallet for your assets, and picking one is another process you need to go through.
The Wallet Selection Process
Regardless of your choice of cryptocurrency, you’ll need to pick a wallet. As mentioned before, this is a process and it begins with some research. This is how you weed out the potential wallets out there and go for some. They will have pros and cons that you’ll need to go over before you decide on one.
In general, you’ll come across 2 kinds of wallets. These are the hot and cold ones. The hot ones are rather convenient because they share a connection to the net. So, you won’t need to go online to make a transaction or trade your assets. Moreover, you can store different assets in a single wallet.You’ll just need to keep safe from online threats as this is common with hot wallet users. This is why you’ll need to look into the security measures of hot wallets or go for a cold one.
Cold ones aren’t online and serve as physical storage for your assets. Whichever wallet you go for, it will need to suit your needs.
Conclusion
With a wallet by your side and a platform, you’re ready to buy your first assets. Then it’s time for the next steps as you slowly enter deeper into the world of crypto trading. Don’t worry about experience as you’ll build it up.
