How to Trade Cryptocurrency: Your Beginner’s Guide

How to Trade Cryptocurrency: Essential Tips for Beginners

If you are thinking about whether it is even worth joining the crypto trading world, then this article is for you. The crypto market is as hot as ever, and if you do not yet know how do you trade cryptocurrency, it is never too late to start exploring digital possibilities and diversifying investment portfolios.

We have prepared a detailed instruction for those who are only beginning their journey and want to learn how do you trade cryptocurrency.

1 – Start with selecting a platform which you will use for your transactions. There are hundreds of options to choose from, and before you make the selection, double-check the applicable fees, reputation, user reviews, security measures and what currencies it offers. These features are different for each platform, which is why you have to be especially thorough.

2 – Afterwards you have to open a trading account and fund it with either fiat money or some other cryptocurrency. A trading account can be opened in a matter of a few minutes, and it requires personal details like name, email address, and official identification.

The account funding process might sound complicated, yet it is quite simple. You need to add funds so that you can trade and complete transactions. Fiat money can be added from a credit/debit card or via a wire transfer. If you want to add another crypto to your account, then you transfer the desired amount from your digital wallet.

3 – Congratulations, your account is all set, and you can start your trading journey. The next thing on a to-do list is setting trading goals and choosing the crypto you are willing to purchase. It is advisable to analyze the market before making a final choice. Market analysis will help you develop an understanding of the current market situation and determine whether this particular crypto is worth your time and will bring profit.

• You can choose technical analysis and study past crypto prices, market fluctuations and other data to examine trends and patterns.
• If you choose to apply a fundamental analysis, then you are determining the worth of each asset based on all available information about the certain blockchain. This helps to identify the potential of crypto assets.

4 – We are slowly and carefully moving through all the steps that will help you grasp the concept of how do you trade cryptocurrency.

The next step after the market analysis and selecting a crypto, is finally making your first trade. Transactions are handled in the so-called ‘transaction pairs’. These pairs are formed between fiat money and cryptocurrency, or between two cryptocurrencies.

Example: EUR/ETH – this trading pair means that you are trading euro – European fiat currency – for Ethereum.

Before you make your first purchase you have to give the platform the specific command, in other words, you make an order. There are several order types, but beginners should first get acquainted with a ‘market order’ and a ‘limit order’.

Market order – the basic order type, which is executed immediately, and is a signal from the trader that he is willing to buy crypto for the current price.

Limit order – the trader sets the desired price himself and crypto is bought only when the targeted price is reached. 5 – After you have bought your first crypto, you have to store it in a safe place. Some traders keep their assets directly on the exchange, for them to be traded quickly if the prices change. If you know for sure that you are going to hold on to your assets a while longer, it is better to activate a digital cryptocurrency wallet or even get a hardware device for even more security.

At first glance, it may seem that these five steps are too easy and not enough to understand the principles of how do you trade cryptocurrency. However, it is a great way to start. Visit https://ellyx.com/ for more detailed guides and insight into market strategies for crypto trading.