Welcome to our guide to crypto trading. We’re here to show you that crypto trading is easy, fun and has the potential of earning you a return from your cryptocurrency investment. So keep reading to see what crypto trading is, how you can do it, and we’ll even give you a few tips for your trades. Take a look below to see why you should get involved in the crypto trading revolution.
What is Crypto Trading?
Crypto trading is where you either buy or sell a cryptocurrency. There are literally dozens of cryptos to trade from massive cryptocurrencies like Bitcoin and Ethereum down to so-called meme coins like DogeCoin and Shiba Inu.
While there’s a seemingly endless number of cryptocurrencies to trade, they all work like any other tradable asset. This means that you can trade cryptos like you would a regular currency like the US dollar, a stock like Apple or any number of commodities like gold and oil.
Stablecoins side, each cryptocurrency’s value is entirely at the mercy of the market. This means that the value of something like Bitcoin can be very high when lots of people want to buy it, and then its value can plummet when no one thinks that it’s a good investment.
The variable value of cryptocurrencies makes them ideal for trading. This means that you can trade one crypto for another such as Ripple for Litecoin, or you could trade a cryptocurrency against another currency such as US dollars, euro and so on.
The central concept of successful crypto trading is that you buy low and sell high, thus making yourself a profit. There’s a whole lot more to crypto trading than this, but that’s the basics!
What are the biggest cryptocurrencies to trade?
If you’re looking to trade cryptos, then you’re probably talking about Bitcoin. This is by far the largest cryptocurrency, and while it has experienced plenty of rises and falls, Bitcoin’s success is still the main reason why cryptos have gone mainstream.
Beyond this, you’ll find that Ethereum is picking up the pace thanks to its smart contract blockchain technology that makes NFT trading an actuality. From here, there are any number of crypto coins that all have their own benefits.
Many people trade Binance Coin for use on the exchange found in our Binance review, while others prefer stablecoins like Tether that are tied to the value of other assets such as the US dollar.
From here, there’s a limitless number of coins like Solana, Cardano and Ripple that have all become viable crypto trading options. Plus with even a supposed joke coin like DogeCoin getting Elon Musk’s seal of approval, it’s little wonder that the world has gone crazy about crypto trading.
Where are the best places for crypto trading?
There are many crypto trading platforms all over the internet where you can buy and sell dozens of different kinds of cryptocurrencies. We’ve got a great list of crypto brokers here, and each of them will work in a different way with varying costs, fees and processes for executing your trades.
We should note that some brokers will let you trade cryptocurrencies in the form of CFDs. CFD stands for contract for difference and it is where you don’t actually own the cryptocurrency itself, but you can profit from the price movement of the asset. This method of trading has the benefit of being faster to execute and you can also buy fractions of a cryptocurrency rather than a single unit – definitely useful if you’ve seen the current price of Bitcoin.
How do I start crypto trading?
Pretty much anyone can start crypto trading. Here’s a quick rundown of what you need to do.
First, you’ll have to get a crypto wallet as this is where you store the keys that protect your crypto assets. We’ve got a selection of the best crypto wallets for gaming that could be useful if you’re planning to trade crypto for esports.
Next, it’s just a matter of going to a crypto exchange where you’ll be able to sell your crypto asset or buy cryptocurrencies. Signing up is usually a fairly painless affair as you’ll just have to submit some basic personal information and you could have your account set up in just a matter of minutes.
From here, you will be able to browse all of the cryptocurrencies that can be traded. You can check the recent price movements and research further into the trading activity of the crypto asset.
Now it’s just a matter of executing your trade. You can simply click on the crypto asset and enter in how many units you wish to purchase. Conversely, for sales you can declare how much of a crypto asset you wish to sell and then see if the market price is good enough.
Some handy crypto trading tips
Crypto trading is fun and easy, but you’ll need to be careful to avoid making some rookie investor mistakes. Here are a few tips to help you out:
- Stay ahead of the market: For example, if Bitcoin’s been on a big rise, then the chances are that its value could be due to a fall as the market checks itself.
- Invest carefully: This is because there’s every chance that your crypto-asset could suffer a massive drop in value.
- Choose the best brokers: Make sure that you only use the crypto brokers we review for a safe way to execute your crypto trades.
Dangers of crypto trading
It’s important to note that crypto trading is inherently risky. The fact that you’re speculating on the price movements of very volatile assets has meant that it’s almost as unpredictable as crypto gambling at times.
Bitcoin has seen multiple crashes in the past decade, some of which has seen its value slide by as much as 80%. Other cryptocurrencies have proven equally susceptible to sudden price falls. While the volatility of cryptocurrencies has made them attractive as a result of their huge gains, many crypto fans have seen their investments wiped out overnight.
As such, you may want to consider crypto staking as an alternative investment option as it can work out to be a passive form of income. Plus the fact that you can earn cryptocurrencies and NFTs through crypto games means that you always have some other options if you don’t want to trade on the markets.
Conclusion – Check back here to learn more about crypto trading
Crypto trading is massive news at the moment, and it’s only going to get bigger in the future. This is because there have been huge rises in the value of cryptos like Bitcoin and Ethereum over the past few years, and there’s every indication that this trend will continue.
As such, it’s no surprise that an entire industry has sprung up on the internet to give you a safe and easy way to execute your crypto trades. As long as you remember that crypto trading is inherently risky, there is no reason why you cannot benefit from buying and selling your crypto assets. So be sure to bookmark this page so that you get all of the information you need about crypto trading!