Below I will explain Cryptocurrency trading for beginners in an easy-to-understand way. You will need a digital wallet and an exchange to start Cryptocurrency trading. From there, the process is straightforward.
Once you get your hands on a digital wallet and an exchange, you are now ready to get yourself verified with your chosen exchange and fund your account. The process generally takes a few days. After verification and funding your account, the next step is to buy and sell Cryptocurrency through the limit, stop, and market trends.
Now, let’s learn Cryptocurrency trading!
How to Trade Cryptocurrency?
Before you start Cryptocurrency trading, here are the steps that you need to follow:
Signing Up for a Cryptocurrency Exchange
The very first step when you start Cryptocurrency trading is to sign up for a Cryptocurrency exchange. For instance, you can sign up for Binance or Coinbase.
Funding Your Account
Before you fund your account and depending on your chosen exchange platform, consider different payment options. So, make sure to research thoroughly before setting up for an exchange.
That’s it. You are now all set to start Cryptocurrency trading. You have the freedom to trade dollars to crypto or crypto to crypto. For Cryptocurrency trading, you will need a Cryptocurrency or dollars to fund your account and crypto exchange (or two) like Bittrex, Coinbase, or Binance to trade on.
If you want to store your Cryptocurrency, you will need a digital wallet (or two). Since there are many digital wallets, you can choose one that suits you, such as MetMask, Atomic Wallet, Trezor, etc. Moreover, you will also need a way to secure your crypto account.
Here are the best practices to secure your crypto wallets and accounts:
Secure Your Crypto Wallets and Accounts: Basics
Firstly, make sure to copy and paste your crypto’s public key, seed phrase, private key, pin/password and store it somewhere safe. It is critical, and in case of losing this information, you will lose your crypto account.
Some additional tips to protect your crypto wallets and accounts include:
- Don’t share sensitive information with anyone, such as public and private keys, pin/password, and seed phrase.
- Create a backup of your sensitive information and store it somewhere safe.
- I also recommend using a password application, such as Google 2FA or LastPass, as well as a password-protected offline device.
Secure Your Crypto Wallets and Accounts: Advance
Some advanced tips to secure your crypto accounts and wallets are:
- First, get yourself at least one secure offline device, such as Trezor Hardware Wallet or an encrypted flash drive to protect your passwords.
- Make sure your chosen password is firm and hard to guess.
- Generate new secure passwords offline.
- If possible, use 2FA because it is your best defense and can protect your account from hacking threats.
- For a non-custodial wallet, there will be a public and private key. The public key is used to receive crypto, while the private key serves as a password. So, make sure to keep your public key protected.