How would you like to trade cryptocurrency from today? No matter where you live or what kind of device you use, you can easily start trading cryptocurrency without having to leave home.

The popularity of cryptocurrency has grown exponentially over the last couple years. More people are investing in cryptocurrency than ever before, and the value of some coins has skyrocketed. If you want to get started now, you don’t need to wait for exchanges to open. There are plenty of ways to buy cryptocurrency today.

What is cryptocurrency?

Cryptocurrencies are digital currencies that work a little differently than traditional money. With cryptocurrencies, there is no central bank or government to control them. Instead, they rely on a a decentralised system known as blockchain technology. This technology essentially allows the crypto assets to be self managed without the need for a central bank

Of course this blockchain doesn't run itself so surely someone is controlling it right? Well kind of, in fact you can control part of the blockchain yourself. By setting up your local PC as a "Miner" (a computer that helps keep the network secure by verifying transactions) you will have an opportunity to earn Bitcoin for doing nothing more than running a program. All of the Computers in the world being setup to "mine" cryptocurrency is what keeps the whole network running.

The first cryptocurrency was Bitcoin, which launched in 2009. Since then, many other cryptocurrencies have been developed. Some of these include Litecoin, Dogecoin, Ethereum, Ripple, Dash, etc.

Cryptocurrencies have also recently allowed developments of more advanced digital assets known as NFTs. These digital assets, just like physical assets, can be bought and sold on public markets. Due to the nature of these digital assets they can also be used as investments or to trade similarly to crypto assets themselves.

Cryptocurrency Trading Steps

To help you understand the process this next section will explore the steps you can take to get started investing or trading in crypto.

Step 1: Choose Your Crypto Exchange

When it comes to buying crypto, most people choose to do so on a crypto exchange (aka cryptocurrency exchange). A crypto exchange is basically a website that allows users to buy and sell different types of crypto by allowing access to the crypto market, similarly to the stock market. The best known ones are Blockfi and Binance. 

The two options above aren't the only options but are the two that I personally use. I use Blockfi as it has a great interest rate on crypto held within their app and because of that, this is where I hold my long-term crypto purchases (I personally hold BTC and ETH).

Binance on the other hand, I prefer to use as my trading account. Pretty low fees, good selection of altcoins, and a really easy interface with advanced charting to make it a great choice for handling technical analysis required for day-trading.

Step 2: Fund Your Account

Unfortunately your crypto isn't free. Once you have created your account you must fund your account so you can actually purchase crypto. This means depositing fiat currency into your account.

You can deposit either via credit card or wire transfer. To deposit follow along with the following resources:

Deposit through Binance

https://help.blockfi.com/hc/en-us/articles/4416050016020-How-do-I-fund-my-account-via-bank-transfer-

Deposit through Blockfi

https://www.binance.com/en/blog/fiat/cash-to-crypto-how-to-top-up-crypto-on-your-binance-pay-via-fiat-channels-421499824684902772

Step 3: Your Trade Plan

Now this step is going to be a little vague. Investing in any asset not just crypto requires you create some form of plan. These will depend on whether you plan to be a long term investor or a short term trader.

Long-Term Investing

For long term crypto investors, you will likely want to focus on cryptocurrencies long term prospects. For example, you may want to look at the projects behind certain crypto currencies to discover what makes them tick and how much potential they have. This could give you valuable insight when determining if you should invest now or wait until later.

Short-Term Trading

On the flip side, if you are looking to trade crypto, you'll need to decide how much risk you're willing to take on each trade. If you're planning on making multiple trades per day, you should be trading with only a small amount of your total portfolio as to not risk too much at once.

With trading the goal is not to win every trade, but instead that on average over time you are profiting. You may only win 1/2 of your trades but if you win twice as much as you do when you lose, then your strategy is profitable. 

Of course this overview is very brief as these subjects are far too massive to condense into one blog post. They also have many caveats where something that may be considered "incorrect" could be profitable still. Whichever you choose (long/short term) it is important to know that you will be constantly learning whether your 1, 2, 5 or 10 years into your journey. The landscape is always evolving... and so must you!

At this point in the process it is probably going to be worth your time to checkout other resource to learn the different strategies within long term and short term trading as this massively influences the purchases you will make.

Once you feel you have decided your ready to get started trading/investing the only thing to do is... well, place the trade!

Step 4: Practice

Congratulations! You have officially placed your first trade within the crypto market and you can officially say you are a crypto investor/trader. As mentioned the differences between short/long term trading can be quite large but whichever route you go down, you will need to practice, practice, practice. 

You likely WILL lose money, especially at the start of your journey. So try not to be ridiculous with your trades/investments unless you are completely confident with your decision and understand that even the most perfect plans can still end up losing. Continue to manage your risk properly, and practice what you have learned in mistakes from previous trades. If you are really emotionally effected by losing trades, then this maybe isn't the path for you.

The Risks of the Cryptocurrency Market

As with anything there are risks involved with investing in cryptocurrency. Some of which are more obvious than others. One such risk is price manipulation. There are many ways to manipulate prices including pump and dump schemes, wash trading, spoofing, etc.

Another risk is volatility. Volatility is simply the measure of change in value over time. In traditional markets we use the Dow Jones Industrial Average to track the overall performance of the US stock market. It shows us how much the overall market has changed since the last time we looked at it. A similar concept exists in the cryptocurrency world where we can see how much the value of Bitcoin has changed since its last high.

Cryptocurrencies are extremely volatile and can fluctuate wildly over short periods of time. This means that if you invested $100 today, you might find yourself with $50 tomorrow. While this sounds like a bad idea, it's actually an opportunity to buy low and sell high. When you purchase a coin at a lower price, you are purchasing at a discount. It is sometimes difficult to distinguish whether the drop you are seeing is a sale, or a justified drop.

Summary

So there we have it, my top tips for getting started investing in Crypto. I hope this helps anyone who has been wanting to get involved but was unsure about which way to go. It goes without saying, but this is NOT a get rich quick scheme. Whether you are investing or trading, the process takes a long time to build wealth. However, if you stick with it and continue to learn, you will eventually reach your goals.

If you found this helpful please share it on social media and let me know what you think in the comments below 

Thanks for Reading! 😊

FAQ

What causes crypto price fluctuations?

As with all financial markets, the price of cryptocurrencies move up and down. However, the cryptocurrency market differs from traditional markets in the degree of volatility. It moves very fast.

These fluctuations can be scary, but for some investors they are the key to making money with cryptocurrency. This means it’s important to try to understand what makes prices move. (thetimes.co.uk)

What Is a Cryptocurrency Exchange? How Does It Work?

A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. Crypto exchanges work similar to online brokerages, as users can deposit fiat currency (such as U.S. dollars) and use those funds to purchase cryptocurrency. Users can also trade their cryptocurrency for other cryptocurrencies, and some exchanges allow users to earn interest on assets held within the exchange account. (investopedia.com)

How Much Money Do You Need to Buy Crypto?

Exchanges have different requirements, often depending on the type of cryptocurrency you want to buy. You may be able to buy fractional shares of coins for pennies or just a few pounds. Be sure to check your chosen crypto exchange's requirements for the coin you want to buy. (forbes.com)