What is Crypto currency trading?
Due to the fact that the cryptocurrency market is extremely volatile, you should know the basics of trading digital currency before beginning. Without knowing the rules of trading cryptocurrency, one mistake could cost you hundreds or thousands of dollars.
Here is some quick information about trading cryptocurrency for beginners.
One of the great things about cryptocurrency is that it’s easy to start trading. To start trading cryptocurrency, you just need an exchange to trade on and a wallet. Despite common belief, a cryptocurrency exchange is not affiliated with the stock exchange. A cryptocurrency exchange is an online business that allows you to buy and sell cryptocurrencies whereas a cryptocurrency wallet is a secure place where you can store encrypted passwords that represent digital currency.
Before you start trading cryptocurrency, you should know some basic concepts. For a beginner cryptocurrency trader, the simplest place to sell, buy, and store coins is Coinbase. Even though the platform only allows you to buy, sell, and store Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, the company offers a reputable exchange and wallet that you can trust. As the most popular cryptocurrency website in the United States, the company features a currency exchange along with a Litecoin wallet, Bitcoin wallet, Bitcoin Cash wallet, and Ethereum wallet.
Among many things, one great benefit to trading on this exchange is that you can buy coins instantly from the wallet once you deposit money into it. If you don’t have a big bank account, keep in mind that you don’t have to buy a whole coin. Give the fact that bitcoins can be expensive, consider buying fractions of a coin instead. For easier trading, don’t forget to download the app and set alerts. The alerts can inform you of the best time to buy and sell cryptocurrency.
Although trading cryptocurrency is extremely easy to start, the only way to be successful is to throughly understand the basics of trading. There are a variety of places to trade currency and set up wallets, and almost all of the options will work well with a Coinbase account. That’s why trading with Coinbase is a great place to start. Once you become more experienced trading cryptocurrency, you may want to consider trading with GDAX. As the preferred exchange of many cryptocurrency traders, GDAX is essentially a better version of Coinbase. After you master trading on GDAX, you can then trade with the pros on exchanges like Binance and Bittrex.