How to buy, hold and sell cryptocurrency

How you can buy, hold and sell cryptocurrency

The burgeoning popularity of the cryptocurrency has attracted many traders in recent years. But the main question is how to buy and sell these virtual coins? We have made it simple for you. If you are planning to try your hands in the cryptocurrency market, then follow these simple steps:

1) Decide whether you wish to buy or trade

It is important on your part to decide whether to buy cryptocurrency units or to trade on the price. Trading allows you to speculate on the market price without taking ownership of an underlying asset. It can be done through CFDs. On the other hand, investing allows you to seek larger returns over the long-term by buying and holding crypto coins.

2) Set up a trading account

The next step is buying and selling cryptocurrency, and you can do this through the exchange. It means that you are required to open an exchange account and keep your virtual coin in your' wallet.'

If you wish to trade cryptocurrency, you will require a brokerage account despite directly accessing the underlying exchange. The financial services provider will face the underlying market on your account. It is very easy to set up an online trading account. The steps for opening an account with a financial service provider is discussed later in this article.

3) Choose the digital currency you want to buy and sell

There are more than 1500 cryptocurrencies in the financial market, and you cannot trade all. However, you can trade some major currencies, including bitcoin cash, bitcoin, Ripple XRP, Litecoin, and Ethereum.

Choosing the best among them is a tough job, but the analyst suggests that you should go with the one which you understand better. Decide your comfort zone, enhance your knowledge, and analyze price movements for the same. It is better to trade with sufficient knowledge rather than going with the broad-brush approach.

4) Select a trading strategy to pursue trade

It will help if you are confident enough that you understand and know the market trends very well. Choose the strategy with which you are comfortable. The price of cryptocurrencies largely depends on several factors. The factors that influence price include government regulations, new government policies, media coverage on the sector, and the prosperity of the United States dollar. Moreover, it also gets affected by the statements given by government ministers, influential business personalities. Hence, while deciding the best strategy to pursue a trade, you should consider all these factors.

Apart from this, virtual coin trading also depends on the type of profession you are pursuing. If you work in a private organization where you hardly get time to monitor price shifts, you can go with swing trading. On the other hand, if you have sufficient time to sit in front of a computer screen and profit on small price moves, you can go with day trading.

5) Practice trade

Once you decide the type of strategy, the next step is practicing the trade. It can be achieved through a demo or virtual trading account provided by the financial service provider. This account protects you from the sudden real market price fluctuation and helps you apply your strategies and check their potential. It is the best way to start. You can go with the HFTrading demo account, which is absolutely free.

6) Apply your strategy by placing trades

Once you have practiced through a demo account, it is time to enter the real market and define the entry and exit conditions. It is a vital discipline. Remember, cryptocurrencies are highly volatile, and opening large trading positions is risky. Once the trading position has hit the target or reached the maximum loss level, you will be required to exit the position.

How to open a trading account for buying, holding, and selling cryptocurrency?

To start online trading in cryptocurrency, you require an online trading account. For this, you need to opt for an authentic financial service provider. The account opening steps for all brokerage firms are the same. These are as follows:

1) Visit the website of the broker and sign up. Never forget to check the URL of the website twice for mitigating or nullifying the chances of fraud.

2) Sign up process requires your personal details such as name, surname, profession, email id, and phone number for verification.

3) Enter the OTP and move to the next step.

4) Scan the documents and upload the file. The documents required in this process include identity proof (passport or national id card), address proof (bills), and bank and financial statement not older than six months.

5) Choose the cryptocurrency you wish to trade.

6) Deposit the amount

7) Start trading

If you are investigating for a legitimate brokerage firm, then you can go with HFTrading. It is an authentic financial service provider working under the Australian Securities and Investments Commission and New Zealand Financial Markets Authority guidelines. The minimum deposit to start trade is $250.

The Bottom Line

Cryptocurrency has captured the entire market, and time is not far when it will replace the conventional money system and fiat money method. The future belongs to digital coins. Thus, a large number of traders are showing their interest in cryptocurrency trading. But, it is not an easy task to enter the market and start trading. It requires deep research and strategy to buy, hold, and sell cryptocurrency. The article sheds light and revolves around this concept. Hopefully, it conveyed everything which you were looking for along with the best broker to start with. You can start your trading journey now.