Beginners Guide - How to Trade Cryptocurrency

Introduction of Cryptocurrency

Welcome to the cryptocurrency trading beginner's guide!

The cryptocurrency markets are ideal for traders who want to profit from the high volatility and constantly shifting token prices. You will learn how to trade cryptocurrency and make money as a complete beginner in this guide. 

We will show you the step-by-step process to trade cryptocurrency. But before proceeding further, let’s understand the basics of crypto trading. Proceed to know what is cryptocurrency trading. 

What is Cryptocurrency Trading?

The digital payment system known as cryptocurrency is decentralized and operates without the involvement of banks for the verification of transactions. It is a peer-to-peer network that lets people around the world send and receive money. Cryptocurrency payments, in contrast to actual currency exchanges, are only digital entries in an online database that track specific transactions. The transfer of cryptocurrency funds is recorded in a ledger that can be viewed by anyone. Digital wallets are where cryptocurrency is stored.

Buying or selling digital currencies with the intention of profiting from the asset's fluctuating value is known as "cryptocurrency trading." The safety and simplicity of cryptocurrency trading are comparable to those of traditional forex trading.

Online cryptocurrency trading can primarily be done in two ways: utilizing a specialized broker or a cryptocurrency exchange specifically designed for this purpose. There are two options for investing there: utilizing cryptocurrency CFDs (contracts for difference) to trade price changes or acquiring ownership of the actual asset.

Suggested read: What is CFD trading

Steps to trade with Cryptocurrency

Trade Cryptocurrency by following these 4 basic steps:

Step 1: Set up a trading account.

To start with, a trader needs to set up a trading account where cryptocurrencies are offered as a financial instrument to trade. CapitalXtend, eToro and Coinbase are among the most trusted, safe, and secure broker firms in the market. All three render simple solutions and a variety of cryptocurrencies to choose from.

The Process of creating an account requires Registration with uploading of valid documents for identification, including some common information such as your number, name, address, and account number.

Step 2:  Make a Deposit in your account.

Once your document verification process completes, you get an Account Service Manager who Assis you at every step of your trading.  Deposit the funds in your account through a debit card or credit card. For depositing funds safety and security is necessary and therefore CapitalXtend offers maximum security to protect transaction and funds.

Step 3: Choose the Cryptocurrency of your choice

Traders get a wide array of cryptocurrencies. Bitcoin. Litecoin, Ethereum, Dogecoin or Shiba Inu. Each Cryptocurrency has a different price. This market is speculative, which is why cryptos' rates can change drastically within days or even hours.

Altcoins have seen meteoric rise and fall in their rates. Cryptocurrencies like Shiba Inu have risen 380,000 %, and Ethereum also skyrocketed 500% in a year. It also attracts many traders because the risk is high, and the reward is higher.

Step 4: Choose a strategy and apply it

One can find several trading indicators to choose from, and most of the traders consider multiple factors when buying and selling their Cryptocurrency. If you are new in this field, you would love to go through a comprehensive cryptocurrency trading course.

CapitalXtend Forex Academy is the popular choice that can teach you how to trade in the forex market along with other commodities to trade in.

Once the strategy is final, a trader can apply the strategy and trade cryptocurrency in their forex trading platforms.

If you are new to crypto trading or trading in the forex market, you can also opt for the Copytrading feature, which allows you to replicate the ideas of one of the most leading traders of the market.

Suggested read: Advantages and Disadvantages of Cryptocurrency

Conclusion 

The speculative and volatile nature of the cryptocurrency markets makes this investment sector ideal for short-term traders. After reading this guide, you should now know how to avoid taking risks in the cryptocurrency trading industry. 

Additionally, if you need any additional direction or assistance, just get in touch with our experts at CapitalXtend, and we'll give you the support you need to get better at trading.