Crypto Trading 101: A Beginner’s Guide to Buying And Selling Cryptocurrencies

Crypto trading is the method of buying and selling cryptocurrencies with the purpose of understanding the profit as a result. Crypto trading will run at 24/7 this means people can trade at any time they need. While compared to other traditional markets like bonds or stocks, crypto markets have higher scope. Trading in cryptocurrencies has been expanded world wide in order to attract the investors looking for the substantial profits and also for independent financial security. As people look for new ways to invest in the modern days, cryptocurrencies become more popular. This article will cover the step-by-step guide to buying and selling crypto.

What is crypto trading?

Crypto trading otherwise known as cryptocurrency trading which means buying and selling digital currencies such as Bitcoin, Ripple and Ethereum to make a profit. The two primary ways that involve in trading cryptocurrencies are,

• Spot Trading - This method means buying and selling cryptocurrencies directly at the same current market price.
• Derivatives Trading - It involves contracts such as sutures and also options that allow traders to speculate on price movements without owning the actual asset.

On the other hand, if the price of Ethereum drops to $1800, your 5 ETH would now be worth only $9000. In this case, you would face a $1000 loss if you decide to sell at the lower price.

This example clearly shows how crypto trading can lead to both profits and losses depending on price changes.

How to get started with crypto trading.

If you are at the beginning of crypto trading, first of all you must choose a reliable trading platform. There are so many platforms like Binance, Kraken, coinbase etc.

The above mentioned platforms will help you to trade different currencies like Bitcoin, Ethereum, and Ripple. After selecting an exchange you need to create an account by providing your details. Few security measures will require an identity verification process called KYC (Know Your Customer).

Once your account is created and verified you can add funds to your exchange wallet. After funding your account, you can buy the cryptocurrency by selecting the desired coin and then entering the amount you need to purchase. When you confirm the transaction, the cryptocurrency will be added to your wallet.

How to buy and sell cryptocurrencies.

Buying and selling has become easier with the rise of user–friendly crypto exchanges and also trading apps. To buy cryptocurrencies, first Login to your exchange account, the next step is to select the cryptocurrency that you want to buy. After selecting enter the amount you need to purchase. After entering the required amount, confirm the transaction and store your crypto in a secure wallet.

For selling the cryptocurrencies go to the trading section of the exchange wallet first. Then select the cryptocurrency that you need to sell. After selecting the cryptocurrency enter the amount and then confirm the sale. The earnings can be withdrawn to your bank account or held in your exchange account.

Crypto trading is a profitable venture. By choosing a reliable exchange you can make your trading more interesting and also profitable.