Are you looking into investing into cryptocurrency to make money or have a high potential returns, this will give you a guide on how to trade with crypto, install apps, how to use the trade apps and make money with cryptocurrency with minimal risk.
What is Cryptocurrency?
Cryptocurrency is said to be a digital currency that makes use of cryptography (that is hiding or coding data from unauthorized users) for security reasons. Compared to the local currencies that is given by the government (such as the fiat currency). Cryptocurrency executes on a non-centralized system which is known as Blockchains. The popular cryptocurrency known all over the world is Bitcoin. There are other cryptocurrency which are Litecoin, Ripple and Ethereum.
How to Trade With Cryptocurrency
The following guides below is to show how to carefully trade with cryptocurrency
1. Select a reliable Exchange
A reliable exchange platform is the one which you can purchase or buy, sell and trade cryptocurrency. This reliable exchange platform which are
- Coinbase: This exchange platform is convenient for beginner, its beginner friendly with an interactive and friendly user interface suitable for fresher who doing crypto for the first time.
- Binance: renders a broad features of cryptocurrency and it is advanced trading features. A lot of people trade with Binance because of its modern and wide range of features that enables you explore round the platform.
- Kraken: its features on this platform is of great assets and well secured platfrom
- Gemini: renders a much protected interface with large regulations an compliance.
2. Create an Account
To begin to trade, you first of all create an account on the Exchange (Binance, coinbase, kraken Gemini) you have selected. This creation of account includes;
- Signing up: Input your email address and create a hard password that cannot be cracked (a password that includes missed of symbols, letter and numbers).
- Verification: in other to be verified, you need to complete your identity by submitting the necessary document such as any of the original government-issued ID.
- Two factor authentication (2FA): increases the protection of the platform by making use of 2 factor authentication.
- Deposit Funds: Immediately you have created the account and is set up, deposit in funds. Many of the exchange platforms accept Bank Transfers (direct deposit from your bank), credit/debit card (instant deposit with higher fees) cryptocurrency transfers ( transfer from another wallet or exchange).
3. Start Trading
Once there are funds in your account on your exchange platform, you can start trading. Below are some basic order types:
- Market order: purchase or sell as fast at the current price.
- Limit order: Buy or sell a specific price.
Stop- loss Order: is an order placed within the broker to automatically sell a crypto when it reaches a certain price to prevent losses.
4. Secure your investment
Transfer your cryptocurrency to a protected wallet after trading. Below are some options you can choose from;
- Hardware wallet: physical devices such as ledger Nano S or Trezor.
- Software wallets: Application in your computer or mobile devices.
- Paper wallets: physical documents with your keys printed.
How to Download and Use a Cryptocurrency Trading App
1.Download the App
Go to App store or Google play store: explore and search for your selected exchange app such as (Binance, coinbase). Download and install the app on your mobile, windows and mac devices.
2. Setup the app
- Login or signup: you can use an existing account if you have one or you ceate a new
- Activate security features: create 2 Factor Authentication (2FA) and other security features to secure your account if there is.
- Link payment Methods: include your bank account or card for deposit.
3. Navigate the app
- Dashboard: always look at your portfolio and market trends to make a well informed
- Trading interface: explore the buying, selling, and trading feature options.
- Wallet: check the remaining funds or balance and transfer funds to your wallet.
- Notification: set prices alerts and other needed notification.
How to Make Money with Cryptocurrency
1. Buying and holding(HODling)
The easiest way is to purchase cryptocurrency and hold them for a length or period of time at which you buy low and over a period of time you sell high. There is a believe that the worth tend to increase over a period of time. Then you sell to get profit.
2.Trading
For you to engage actively into buying and selling cryptocurrencies, make do with the market fluctuation to your benefit. The strategies include:
- day trading: buying and selling the same day.
- swing trading: Holding for some number of days or weeks to take advantage of market fluctuation . for example to hold for some time when you discover you can now make profit by selling your cryptocurrency at a higher price compared to the lower price your bought it. You can profit from price swing
- Arbitrage: make full use of differences in price between the exchanges platforms. You can buy on low price from a particular exchange and sell high in other exchanges.
3. Mining
This is done by rendering a solution to mathematical issues to confirm the validity of your transaction and receives a new cryptocurrency tokens. miners receives transactions and confirm the authenticity, making sure that the sender has enough money and as well the transaction comply to the network rules.
4. Initial Coin Offerings (ICOs) and Token Sales
You can as well invest in ICOs or token sales. it brings a lot of profit but can as well be risky. Try to make your research very well and invest in projects with solid and reliable teams.
5. Dividends
There is a particular kind of cryptocurrency that shares dividends to shareholders. just like the traditional stocks. Examples of cryptocurrency that shares dividend, when you use their platform is NEO (with GAS) and KuCoin (KCS).
Tips for Successful Cryptocurrency Investing
- Do thorough Research: before going into crypto, make solid research about the technology, market potential, teams in cryptocurrency.
- Diversify your portfolio: invest across various multiple cryptocurrencies to reduce risk.
- Be informed: be updated on new trends and happenings in the crypto market.
- Practice Good Security: use very strong password mixed with symbols, numbers and letters, activate 2FA, and save your assets in a well-protected wallet.
- Start small: as a new starter, start by investing small, knowing fully well is something you can give a chance to loose. You need to have proper and lengthy period of knowledge about crypto with that it will prevent you from making loss.