CryptoCurrency: Friend or and Enemy? It Depends...

With over 1500 crypto coins, the crypto market cap is now at $300 billion. It should come as no surprise that an increasing number of people throughout the world are deciding to enter this market and begin investing in cryptocurrency. However, trading cryptocurrency might be confusing at first because the procedure is different from trading on fiat exchanges, which is what many investors and traders are used to.

Today, we'll go through the four key steps that will get you started with crypto trading.

1. Decide which exchange you want to trade on.

To invest in cryptocurrencies, you'll need a location to exchange them, just like you'll need a place to invest in fiat currency. To begin, you must first register and deposit funds into your account, after which you can begin buying and trading cryptocurrency.

There are a number of well-known cryptocurrency exchanges, such as:

.Coinbase

.Poloniex

.CEX

.Bittrex

.Bitfinex

.Binance

.KuCoin

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2. Pick a wallet for your cryptocurrency.

Investors must transfer funds across exchanges and have a place to store their assets due to the large number of them. Cryptocurrency wallets are programs that allow you to store and send digital currency.

There are various sorts of crypto wallets available right now (mobile, desktop, hardware, paper ones). To get started, you'll need an internet-connected mobile or desktop (web) hot wallet. In this tutorial, you may learn more about the subject.

Almost all cryptocurrencies, such as Bitcoin Core, Ethereum Wallet or MyEtherWallet, Litecoin-QT, and Dash Core, now have official wallets. Most cryptocurrency websites include a link to their official wallet.

There are also multi-currency wallets available; here are a few examples:

Jaxx Wallet: accepts Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Dash, Zcash, and other cryptocurrencies for transactions;

Coinomi is a cryptocurrency wallet that supports 64 different cryptocurrencies.

Exodus is a desktop wallet that supports Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, OmiseGo, Qtum, Dash, Bat, Aragorn, and other cryptocurrencies.

As previously noted, there are various exchanges that provide built-in wallets, such as Poloniex or Coinbase.

You're all set and ready to start investing once you've decided which wallets to utilize.

3. Locate information sources

Cryptocurrencies are extremely volatile investments, with prices that can swing dramatically in a matter of hours. Multiple events might cause such movements, thus a crypto trader must keep an eye on market data at all times.

It is a good idea to research a coin before investing your money in it. Coinmarketcap, a website where you can get information on every coin and token accessible, is one of the best resources for this research. The information comprises capitalization, supply, and trade volume, among other things. As a result, the site can be used to compare cryptocurrencies. Another good resource for this type of information is Cryptocompare.

Following prominent magazines and blogs in the field, such as Coindesk, News Bitcoin, The Merkle, and Hackernoon, is the greatest method to keep up with crypto-related news. You can find even more relevant information on social media, such as in crypto-related subreddits, Telegram and Discord channels, and Quora threads.

A CoinMarketCal, which analyzes crypto-related events that may effect coins traded on exchanges, is another excellent source of data.

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4. Make use of technology to boost production and reduce risk.

You should have some trading knowledge and instruments by now. However, as compared to the fiat investment procedure, some parts are still missing.

First and foremost, while constructing a portfolio, fiat investors can utilize stock indexes as a benchmark - the S&P500 and Nasdaq Composite are excellent examples of such benchmarks. They enable investors to trade entire sectors and manage complex portfolios in a simple investment, lowering the portfolio's risk and volatility.

You'll need to locate equivalent tools for the crypto market - for example, Cryptoindex 100 (CIX100) is an automated index that examines cryptocurrency using a machine learning algorithm. This tool helps traders to reduce portfolio volatility and risk, as well as the cost and time associated with investing in several coins, resulting in significant trading savings.

Following the creation of the portfolio, you can track cryptocurrencies using specialist apps like Blockfolio or Delta, which provide useful information (real-time exchange prices, the order book for every coin etc). The use of such technologies also boosts productivity.

Conclusion

When compared to typical fiat exchanges, cryptocurrency trading has a number of distinctions. To thrive in crypto, you'll need to uncover reliable information sources, conduct thorough research, choose the best exchange and wallet, and locate benchmarks and portfolio management tools.

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JAY