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How to trade cryptocurrency

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How to trade cryptocurrency
How to trade cryptocurrency

How to trade cryptocurrency

Crypto traders often have one or two goals:

To accumulate Bitcoin or make a profit in USD.

In a crypto market, it’s pretty easy,

for your portfolio to increase in USD value,

and it’s more demanding for Bitcoin value to increase.

To track your portfolio’s Bitcoin value,

you can trade alt coins against,

Bitcoin on exchanges like Coin base Pro.

What is Cryptocurrency?

Cryptocurrency, crypto-currency, or crypto,

is a digital currency made to work,

as a medium of exchange through a computer network,

which does not depend on any central authority,

like, the government or bank,

to uphold or maintain it.

By actively trading,

you risk losing your crypto to the market.

So, since the crypto prices are so uneasy,

it’s not uncommon for traders,

to lose money quickly trading cryptocurrencies.

How Does Cryptocurrency Work?

Cryptocurrencies are digital assets that operate independently,

off central banks and the monetary policies of governments.

These digital assets like bitcoin, ethereum,

lite coin and more boast a massive market cap.

The blockchain technology that powers these,

digital assets requires independent verification,

of all transactions that take place using cryptocurrency.

Block chain is the technology that powers Bitcoin,

a peer-to-peer network without a central server,

where every node has an identical copy of the ledger.

How Does Cryptocurrency Work?

Nodes are computers that are connected to Bitcoin’s network.

In other words,

they complete transactions and “mine” new bitcoins.

Without nodes,

the Bitcoin network would be easy to attack and defeat.

The Bitcoin network is run,

by nodes interacting based on a shared consensus,

and that means all the nodes must agree on each transaction.

If one of these miners tries to enter false transactions,

it will be nullified by the correct ledger.

The correct ledger is determined by the majority of miners’ records.

In theory,

you could hack a blockchain by controlling 51%,

of the cryptocurrency’s network,

in a process called a 51% attack.

However, this process is economically infeasible,

and would require an extremely,

choreographed hack with billions,

if not trillions of dollars worth of computer hardware.

To transact with a cryptocurrency,

you need to have a set of public and private keys.

These keys are like passwords,

generated by your cryptocurrency wallet.

Your public key is connected to your wallet’s address,

and allows people to send you cryptocurrency.

Your private key is used to,

approve transactions being sent from your wallet,

only you have access to your private keys. 

Contrary to popular belief,

many cryptocurrencies don’t have a finite supply.

Bitcoin’s total supply is capped at 21 million coins,

but many alt coins have a set inflation rate,

with no cap on total supply, like Ethereum

How to trade cryptocurrency

Here are some steps on how to trade:

Make a cryptocurrency brokerage account:

Except you’re already on crypto,

If you’re not on crypto,

you’ll need to make an account with a crypto brokerage.

Pionex, Coin base and eToro are among,

the best crypto brokerages on the market.

These 3 options offer a simple user interface,

and a variety of alt coins to choose from.

To make an account,

you’ll need to provide your crypto brokerage,

with personal identification information,

similar to opening an account with a stock brokerage.

Some common information you need to provide,

when setting up your account includes,

your Social Security number,

address, date of birth and email address.

How to trade cryptocurrency

Fund your account:

If you’ve signed up with a crypto brokerage,

you’ll need to connect your bank account.

Most crypto brokerages offer bank funding,

through debit cards and wire transfers.

Wire transfer is typically,

your cheapest option to fund your account.

it’s free on Coin base and Gemini.

 Pick a crypto to invest in:

Some active crypto traders share out,

most of their capital to Bitcoin and Ethereum.

These cryptos move more predictably than smaller alt coins,

so trading with technical indicators can be easier. 

Many crypto traders share out,

a portion of their capital to smaller alt coins.

Although small mid-market cap cryptos,

are riskier than large-market cap cryptos,

they offer higher upside potential.

Many small alt-coins have risen,

over 1,000% in a matter of months,

making them attractive investments,

for risk-tolerant investors.

How to trade cryptocurrency

Pick a strategy:

There so many of trading indicators to choose from,

and some traders take much factors into consideration,

when buying and selling crypto.

For those who are new to investing,

you may want to consider purchasing a crypto trading course.

If you’re an experienced trader,

you may already have a strategy you use to trade stocks.

Stock trading strategies are also,

commonly used for cryptocurrencies.

A personal favorite trading strategy,

that many traders use is Elliott Wave Theory.

Elliot Wave theory is one of the many tools,

used by market analysts to forecast price movements.

It is based on a hypothetical pattern,

of behaviour as it relates to market trends,

and investor behaviour,

which helps to explain the cause,

behind sequences of same price patterns.

Consider automated crypto trading:

If you seek for a crypto trading strategy,

you might try,

automated crypto trading with a platform like Coin rule.

Trading bots enact a strategy that is intended,

to give you the best results given your investment goals.

Because automated trading,

can provide you with a conservative,

neutral, or aggressive method,

you can make money quickly,

hold your coins or diversify your portfolio.

You might also consider actively trading crypto,

on some platforms while using automated trading with others.

Store your cryptocurrency.

If you trade actively on your crypto,

you’ll have to store your funds on the exchange.

They’re known as hot wallets.

This is fine if your funds are small as it’s quick and easy to get hold of them.

Some exchanges even give you bonus just for having them there..

If you’re buying your crypto to hold for the mid to long term,

then you should get a cryptocurrency wallet.

Cryptocurrency wallets come in two different formats, software wallets and hardware wallets.

Software wallets exist as applications you install on your computer or mobile device, but because they’re not connected to the internet, they aren’t as secure as a hardware wallet.

A hardware wallet is a physical device, like a USB stick or hard drive, that stores your cryptocurrency offline..

Ledger is a brand name most crypto investors trust and this is why they choose to store their crypto assets on hardware wallets.

Zen Go is one of the best software wallets available to cryptocurrency traders.

It’s a simple but powerful tool that can be used by professional and beginner traders alike.

Why? Because it makes trading cryptocurrencies as easy as possible by automating most of the tasks.

It uses secure 3-stage authentication, keeping your digital assets under lock and key.

It’s got comparable security to other wallets on the market, so it’s well worth checking out.

Plus, you can use Zen Go to buy, sell and earn interest on your cryptocurrency investments.

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