When you first begin trading, it can be a little overwhelming, you hear so much about cryptocurrency, and you’re unsure of where to begin.
Cryptocurrency is a relatively new concept, and the world of crypto trading is growing rapidly, with so much new information coming at you daily, it can be difficult to know where to start.
This article is here to help you get started in the world of cryptocurrency trading, it will discuss the different types of cryptocurrency, the best exchanges to use, and a few simple terms you’ll need to know to get started.
What Is Cryptocurrency?
Cryptocurrency is a digital currency that is not controlled by any banks or governments, but instead, the digital coins are decentralized and all of the data is stored on a public ledger.
There are many types of cryptocurrency, but they all have one thing in common: they do not belong to any government or bank and are decentralized, Blockchain technology enables users to securely transact with each other without the need for a third party to verify the transactions.
How to Trade Cryptocurrency?
When you first start trading, you’ll need to set up a few things, first, you’ll need to set up your account with an exchange, you’ll provide some personal information about yourself and fund the account with fiat currency or cryptocurrency.
Then, you’ll have to create a buy order for the cryptocurrency you want and after that’s done, it will be time to wait for your buy order to be filled.
Buy orders are how you enter trades in cryptocurrency markets, they can either be a limit, market, or stop-limit order on an exchange.
A limit order is where you set the price that you want the trade executed at; and if it doesn’t happen by then, it will automatically cancel and go back into your account balance.
A market order is when the trade executes at whatever the current market price happens to be at the time of execution–and this can lead to some pretty good deals as well as some pretty bad deals.
Stop-limit orders are when a trade executes only once a certain price condition has been met whether that’s an increase in price or decrease in price once it does, it then goes back into your account balance until another order is placed.
Best Exchanges for Trading Cryptocurrency
■ Coinbase
It is a great place where to invest crypto / is fantom crypto good and it’s simple, reliable, and secure wherein you can buy and sell cryptocurrency, monitor the market and your portfolio, and more.
■ Kraken
It is the largest Bitcoin exchange in euro volume and liquidity and it supports deposits from US, European, Canadian, British, and Japanese customers, however, you may find that it’s not for beginners as it requires ID verification for certain transactions but has a very high amount of liquidity.
■ Bitstamp
It is one of the world’s leading digital currency exchanges, deposits are accepted in USD, EURO & GBP and there is no identity verification required if a customer does not trade fiat currencies on their account or withdraws less than $1 million worth of funds per month from their Bitstamp account per calendar year.
Get Trading Tools
If you’re just getting started, the first thing you should do is get some tools as well as which can include a cryptocurrency trading app, a crypto wallet, and a crypto exchange account.
