Want to jump straight to the answer? If you are ready to start investing in the crypto market and trading cryptocurrency, but aren't sure of the first steps to take when investing in cryptos according to our experts you should follow those easy steps:
- Step 1: Get hold of a cryptocurrency brokerage account.
- Step 2: Fund your crypto trading account.
- Step 3: Pick a cryptocurrency to invest in.
- Step 4: Choose a trading strategy.
- Step 5: Store your cryptocurrency.
If you are fascinated by cryptocurrencies and intrigued to get hold of some as they become more mainstream and widespread, perhaps the time has come for you to consider cryptos as your next investing move. This being said, and though indeed potentially highly lucrative, cryptocurrency trading is also risky and their market extremely volatile, while their trading is not as easy or as easily available yet, as that of other financial instruments. Cognizant of the particularities of crypto trading and the challenges posed by the endeavor, our team has conjured up useful guides to help beginners understand why, how and where to start trading cryptos, covering all the essential aspects for a successful cryptocurrency trading endeavor.
Coin Guides
Since the first Cryptocurrency, Bitcoin, emerged over a decade ago, thousands of other cryptos or “altcoins” are now up for grabs and picking the best one to buy might be difficult, confusing and tricky. Our Crypto Coin Guides further explore the most popular cryptocurrencies available to help you choose which one or ones, is right and most suitable for you to choose to best meet your needs and aims.
The Pros and Cons of Investing in Cryptocurrencies
The main advantage of cryptocurrency investments is the potential for very high returns and gains due to the high volatility associated with the crypto market and ecosystem. The opposite side of the same argument however, is that this high volatility means a much greater risk for incurring losses, and this excessive risk is the main disadvantage of investing in cryptos. If you have a high tolerance and appetite for risk then cryptos are really suited to you, and obviously not appropriate for risk averse investors.
Cryptocurrency Trading Steps
If you have already decided to start trading cryptocurrencies, here are the five main steps you should follow:
Step 1: Get hold of a cryptocurrency brokerage account.
To be able to trade cryptos you will need to open an account with a brokerage or exchange which caters for this type of trading. Fortunately, due to the boom and high popularity of cryptos, prospective investors have a plethora of brokerages and exchanges offering crypto trading services to choose from. When choosing your own crypto trading service provider look for ones that offer you a wide variety of crypto choice available for trading, through a user-friendly and reliable interface and platform.
Opening a crypto trading account requires you to submit your personal details, similarly to when opening an account for other investments, such as in stocks or forex. Moreover, you will be required to also supply identity verification information and proof.
Step 2: Fund your crypto trading account.
Once your crypto trading account is set up, you will then need to fund it to be able to trade. For funding purposes, most crypto brokerages and exchanges accept a variety of funding methods, such as debit and credit cards and bank wire transfers.
Step 3: Pick a cryptocurrency to invest in.
The most popular cryptocurrencies chosen by most crypto traders are Bitcoin and Ethereum, which have been around for a longer time and their price movements are more predictable than those of lesser-known, smaller altcoins. This increased predictability means that technical indicators may be easier to use to guide investment decisions.
Risk tolerant crypto investors, often direct their trading to smaller altcoins, due to the higher potential for gains they offer, which make them very attractive investments. However, due to the higher associated risk, smaller altcoins are usually avoided by novice traders.
Step 4: Choose a trading strategy.
When buying and selling cryptocurrencies, traders are advised to take into account several different trading indicators to be able to devise their trading strategies effectively and successfully. Complete novices may benefit from dedicated crypto trading courses, while seasoned traders often rely on the strategies they already use with other investment types, such as investing in stocks. Since crypto are speculative assets, some strategies are more suitable than others, and one such strategy is the Elliott Wave Theory, which centers around the psychology underpinning market sentiment.
Step 5: Store your cryptocurrency.
Storing your crypto assets on your trading exchange makes sense if you are an active day trader, since you will be needing constant access to your funds. However, if you are buying digital cryptocurrencies to hold them in the medium and longer term, it is imperative that you get your own cryptocurrency wallet, since digital currencies may only be stored in either software wallets or hardware wallets. As a general rule, hardware wallets are safer than software wallets, as your crypto is actually stored on a physical device that you have full control over, while hardware wallets, as opposed to software wallets, work entirely offline and are thus immune from online threats, such as hackers.
The Best Crypto Exchanges in 2024
Rating breakdown
Things we liked:
One of the most trusted brands in cryptoVery fast, easy to use interface
Binance offers extremely low transaction fees
Things we didn't like:
Can be overwhelming for people who are new to crypto or trading
Rating breakdown
Things we liked:
Simple platform is easy to operateComprehensive mobile app mirrors desktop functionality
Coinbase Earn feature rewards you with crypto for learning about available coins
Things we didn't like:
Higher fees than competitorsThe Best Crypto Trading Platforms in 2024
4.3 / 5
Rating breakdown
Things we liked:
Up to 500:1 leverageLow minimum deposit requirement
Things we didn't like:
Absence of a direct telephone number for customer supportOspreyfx is not a fully licensed and regulated broker
4.2 / 5
Rating breakdown
Things we liked:
AvaTrade has low trading feesThe account opening is user-friendly and fast
It offers a lot of deposit and withdrawals options free of charge
Things we didn't like:
The product portfolio is limited as it offers only CFDs, forex, and cryptosThe research tools are limited
4.0 / 5
Rating breakdown
Things we liked:
XM has low trading feesThe account opening is user-friendly and fast
Lots of educational tools
Things we didn't like:
XM has a limited product portfolioThe research tools are limited
It charges inactivity fees
Cryptocurrency Buying Guides: Buying Crypto in 2024
It’s getting easier and easier every day to buy cryptocurrencies. In the guides, we break down all the elements involved in buying cryptocurrencies so you can make an informed decision, since the dedicated guides you can find in this section of our education resources help you explore the main cryptocurrencies available, the main payment methods you can use to obtain them and what applies for crypto trading in different countries.
Ultimate Guide on How to Buy Bitcoin - Start investing on BTC
This ultimate guide on the purchase of Bitcoins, covering every aspect and aiming to equip you with all the necessary knowledge and information to be able to decide which are the best options for you. Read through and gain the insight and confidence to start investing in Bitcoin today! As Bitcoin was the first cryptocurrency to emerge and remains today the most popular one, it is usually the best crypto especially for beginners. This guide explores and presents the Bitcoin buying journey, while highlighting other important aspects of the endeavor, such as the safety, security and privacy of Bitcoin trading transactions.
How to buy cryptocurrencies with Credit card or Debit Instantly
In the recent past, using a credit or debit card to buy cryptocurrencies was almost entirely impossible, meaning that interested individuals had no convenient and fast method to pay for such transactions. Luckily, the process of buying cryptocurrencies with a bank card has nowadays been made easy and smooth primarily due to the emergence of online crypto exchanges that serve most regions of the world and accept debit and credit cards as a method of payment. Clarifying the main points to consider and aspects to be aware of, before proceeding to buy crypto using your credit or debit card, our dedicated post allows you to be able to use the fast and convenient method of buying Bitcoins and other cryptocurrencies using a debit or credit card, while highlighting that to do so you will first need to find the right, reliable crypto exchange or service provider to open an account with and ensure that, according to where you live and which cards you have, it will be possible to make such a transaction.
The ultimate guide on How To Buy and Sell Bitcoin In The UK
If you are looking for information for buying Bitcoin, the oldest and most popular cryptocurrency around, in the UK, this guide is the sole source of information and guidance you will need. Do not worry if you are new to Bitcoin and do not exactly grasp all the principles and technology that underpin this digital asset class, as our resident team explains in a clear and comprehensible manner how you can buy, sell or hold Bitcoins, and other altcoins, in the liberal crypto market that is the UK, where cryptocurrencies are gaining in momentum and popularity.
Best Forex Brokers for Bitcoin and Crypto Trading in 2024
In an attempt to help steer you in the right direction when it comes to your crypto trading endeavors, this post discusses the option of doing so via forex brokers, trying to discern how you can better identify the best forex brokers for crypto trading amongst those currently offering this service. Scammers as well as high volatility render the crypto trading niche massively risky and it is thus important for interested traders to seek ways to mitigate such risks. A good way to do this is choosing their providers carefully and after factoring-in many parameters, while also resorting to diversification to minimize their exposure. After reading this post, you will be in a better position to confidently choose the best forex broker for your Bitcoin and crypto trading endeavors.
Though on the rise and booming, cryptocurrency trading is still not as widespread as other types of financial trading and definitely less readily available, except in a few countries across the globe. However, as more cryptos are being created and as their usage as real alternatives to fiat currencies and acceptable means of payment for any transaction continues to grow, their trading is bound to be further consolidated and facilitated. Learn all about cryptocurrency trading to be able to identify and pursue the many lucrative opportunities to be had through the trading of digital currencies, as a form of investment.
Getting Started with Crypto
Most Popular Cryptos and Altcoins
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Best Cryptocurrency Exchange
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