Trading in cryptocurrency is on the rise. It consists of the purchase, sale, or trade of virtual currency to make more income in a minimum time. This investment option draws many investors because it is highly profitable. The market cap hit 100 billion dollars recently. However, as a novice, selecting from a vast range of crypto-trading platforms may be daunting for you.
Some crypto-trading applications like Bybit bonus, provide you with bonus features, whereas others may not. Similarly, some applications have various features, while others do not. However, most traders forget to take these important considerations into account. If you follow the steps below, you will comfortably pick the best crypto-trading apps and get the most of your investment.
Step 1: Select the Best Online Cryptocurrency Trading App
You can locate exchange platforms without difficulties. There are so many that you’re spoiled for choice. However, remember that they all work quite the same, but each has its particular range of resources, functions, options, fees, and commissions. They might even not be using the same technologies. Therefore, it is necessary to take the time to read about each of them and select the best one. But above all, you must pick the one that suits you.
Here Are Some Basic Parameters to Keep In Mind
- Deposit/withdrawal conditions
- Minimum investment
- Years of existence and experience
- BTC / USD quotes
Step 2: Do a Technical Analysis
Take the time to do a technical review before you start. It is a method that traders use to understand the market better and assess what patterns are from indicators. It helps you predict the rates and movements in virtual currency in the future. This way, you will spend knowingly in buying or selling the crypto units.
Tools and Market Research
Some trading sites for cryptocurrencies will provide you with all the required resources and market research for this analysis for free, e.g., Bybit bonus. It comprises discount coupons and many more exciting offers for a Premium account subscription. Technical research is nevertheless essential, as you would also be able to identify the target you want to achieve; and the cap you don’t want to hit to take multiple risks.
Step 3: Respect the Rules of the Game
- The first one is never to go for it with your eyes closed. Don’t start trading before sufficient homework has been done and when you know how it operates and learns the laws regulating the crypto trading business. Do not wait to use a newbie account and be motivated by the successes of seasoned traders. It will save you big shocks and disappointment.
- The second is that you should never overlook that it is indeed a speculation business and subject to regular changes. Try to anticipate future profits and losses when investing. Limit your investments to your losses.
- The third is to take the time to follow developments in the business. Watch the news continuously, and each step or transition will alter the current cryptocurrency value.
Cryptocurrency Trading: Which Virtual Currency to Invest In?
There are thousands of cryptocurrencies worldwide. It’s impossible to provide an exact number. Yet according to experts, the latest news is between 2000 and 5000. You can sell most of them. Be careful, though; some have more values than others. And here’s a list of the most common cryptocurrencies with a substantial market cap: Bitcoin (BTC)
- Ripple (XRP)
- Ethereum Classic (ETC)
- Dash (DASH)
- Eos (EOS)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Stellar (XLM)
- TRON (TRX)
Cryptocurrency Trading: What Does It Consist Of?
When you talk about trading, you automatically think of an investment. But in reality, you can trade virtual currencies in two ways:
The CFD is used to exchange cryptocurrencies’ current value. The deal agreed between “the seller” and “the buyer.” It specifies that the seller would have to compensate the buyer’s difference if the cryptocurrency price rises in a specific period. You can achieve it without even a virtual currency.
Buying and Selling Crypto Currencies
You can sell, buy or trade cryptocurrency, if only via exchanges. You must build an account on them and deposit to purchase them. The minimum investment valuation would rely entirely on the selected broker. You should then carry them within your wallet and wait for them to be traded or re-sold.
You’re now all set to begin your cryptocurrency trading journey with the trading platform of your choice. However, don’t forget all the critical factors stated above. Best of luck with your trading endeavors!