WHAT IS CRYPTOTRADING?
Crypto trading as the name implies is the exchange of cryptocurrency. Just like Forex which is the exchange of currency from around the world, crypto trading is used to trade cryptocurrencies like Bitcoin(BTC), Litecoin(LTC), and Etherium(ETH) along with a slew of others. This is a very extensive topic that includes information from different sectors. So, this article will focus on the basics and how a person with no background in the cryptocurrency space can benefit from crypto trading.
- Getting Started
The first thing you would want to do is find a good coin exchange service and wallet (like Unocoin in India and Coinbase in the US).Please do your own research on the different services because each has pros and cons. But this makes the whole process a lot simpler rather than doing all on your own. So these services are all in one- A cryptocurrency wallet, a cryptocurrency exchange and also a currency exchange. Once you have figured out which exchange you want, move on to step 2.
- Make your account on the service you have chosen.
This includes all tying your account with your bank and verifying it via Government ID like Aadhar and PAN in India.
- Buy your cryptocurrency
Now you can freely trade your cash to buy cryptocurrencies offered on their service.
You can also sell the newly bought crypto coins very easily as and when you see fit.
- Diversify your assets
We’ve all heard the old adage- Don’t keep all your eggs in one basket. This stays true in this context. Cryptocurrencies are extremely volatile and it is extremely hard to predict how it is going to go. To be on the safer side ALWAYS diversify, this can mean buying other cryptocurrencies or using different cryptocurrency services or even investing in something else altogether like stocks or bonds.
Word of advice to anyone planning to plunge into the world of investing- Never invest more money than you are willing to lose. There are people who have become penniless because of bad investments. So, always do your research and make the best plan of action. If this is your first time trading, invest a small amount. That way, you can rest easy knowing you are still financially safe even if you lose the money.
Now that you are making money left and right and centre maybe you want to see how all of this works. The technology behind cryptocurrency is the revolutionary blockchain system which is a decentralized network. In this system, everyone who is part of the chain has or can download the ledger (A ledger is the record of all transactions ever taken place.) Since everyone has a copy of the ledger it is virtually impossible to cheat the system. That is why the blockchain system is said to be impenetrable as opposed to the centralized system like banks where only the banks have access to the ledger.
Again, always remember to make smart choices because it can very easily ruin you. With the proper research and prediction, one can make a lot of money very easily and very fast. Look for those good opportunities and have a little fun doing it. Being in a good mindset will help you make better choices.