The Cryptomaniac’s Guide: How to Trade Crypto

how to trade crypto

When Bitcoin was created in 2009 it had a value of $0. At the time of writing, a single Bitcoin is worth $39,871.50.

Cryptocurrencies are digital assets that can be bought and traded using blockchain technology. Over the last decade, the interest in crypto has increased massively. Many people have been able to profit from crypto through a range of methods such as crypto trading, mining, and staking.

If you want to know how to trade crypto, keep reading.

Sign Up for an Exchange

One of the first things you want to do is set up an account on a crypto trading platform. Some of the most popular include Coinbase, Binance, and Gemini. These all serve a similar purpose, but vary in terms of their features and the cryptocurrencies they offer.

To open an account you will need to put in some details and provide ID for verification. Once you have your account you can add a payment method. Most people choose to add a credit/debit card, or their bank account for direct transfers.

Buying on an Exchange

After this, you can start investing in crypto. You’ve probably heard of Bitcoin and several other popular cryptos such as Ethereum and Cardano, but there are actually thousands you can choose from.

Knowing what to pick can be difficult, so you should always do research to help make the most informed decision. Most people recommend building a diverse crypto portfolio, as betting everything on one coin is very risky.

With Nested you can easily build and manage your portfolio and even look at other successful portfolios to get an idea of how you can divide your funds. Go here to see what they offer.

Decide How to Trade Crypto

When it comes to trading crypto there are several strategies you can use. If you’re new to crypto you could invest in a crypto trading course to get a better idea of how to start.

Experienced stock traders may have an advantage here as stock trading strategies can often be useful when trading crypto. There are also automated systems that use bots which you can utilize if you think it’s best.

Setting up a Wallet

Once you have some crypto it’s important to store it securely. Set up a wallet such as Metamask or Phantom to store your crypto. Just make sure you pick a wallet that supports whatever cryptocurrencies you’ve chosen.

If you want to keep things even more secure you can use a hard wallet. This is a physical device that you can keep crypto on and is the safest way to store it.

Successful Crypto Trading

Even if you think you know everything about how to trade crypto, remember that nothing is ever guaranteed. You should only invest money that you can afford to lose, and remember to always do your own research.

If you’re interested in more finance articles check out some of our other blog posts.