Did you know that the average stock owner is most likely invested through retirement plans and mutual funds? Yet, there is a different way to make money for your future; cryptocurrency investing.
Just like there are different ways to acquire stock, there are different methods of gaining crypto.
Trading cryptocurrency is a new trend that can actually make you money if you do it right. How can you start trading today? Read on to find out.
Create a Cryptocurrency Brokerage Account
To start trading cryptocurrency, you’ll need to create a cryptocurrency brokerage account. As a beginner, you’ll want to find one with a simple user interface that allows you to trade a variety of altcoins. The tops ones include:
To make an account, you’ll provide personal identification information just as you would when opening a stock brokerage account. Common information needed includes your address, email address, and date of birth.
Fund Your Account
After signing up for a brokerage account, you’ll connect your bank account to transfer funds. Most brokerages offer funding through wire transfers and debit cards.
The cheapest option to fund your account is a wire transfer. On some brokerage platforms, this process is free.
Choose a Crypto for Investing
The common cryptocurrency investor adds most of their capital to Ethereum and Bitcoin. However, there are other cryptocurrencies using blockchain technology like Tether (USDT).
You can buy Tether in other countries like Canada. To do this, you’ll need to learn how to switch USDT to CAD.
Compared to small altcoins, Ethereum and Bitcoin are more predictable. This is why many deem Bitcoin the best cryptocurrency.
Even if you prefer to allocate most of your capital to the more predictable coins, you can choose to give a small portion to altcoins as well. Although riskier, there is a higher potential to make money with small altcoins.
Pick a Strategy
Trading indicators, or strategies, come in various forms. Most traders consider more than one factor with cryptocurrency investing. You can also take courses on buying and selling crypto.
If you’re experienced with trading stocks, you might have your own strategy already. These strategies can be used for cryptocurrencies as well.
To have access to the cryptocurrency that you trade, you’ll need to store your funds on an exchange. If you plan to hold the cryptocurrency that you buy for long-term use, you’ll want to get a cryptocurrency wallet.
You can opt for hardware wallets or software wallets. Both are secure choices, but hardware wallets are best because they store crypto on an offline physical device. Software wallets are online and some are free to use.
Trading Cryptocurrency: It’s Time to Get Started
Trading cryptocurrency takes understanding the blockchain network which differs from traditional stocks. To get started with trading, and hopefully, make some money, you’ll need to use this guide.
After creating a brokerage account, you’ll have to fund it with the money you currently have. Once that is complete, you can choose what cryptocurrency you want to invest in and build a strategy.