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All you Need to Know to Start Cryptocurrency Trading

08/21/2018
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  • Cryptocurrency
  • trading
  • bitcoin
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Do you want to start making money on cryptocurrency trading, but don’t know how to go about it? Read this article, and you will know how to buy and sell cryptocurrency with minimum risk, learn 3 tips on how to choose an exchange just for you, and the most significant criteria to invest in cryptocurrency without losing money.

What to do before bitcoin trade

Cryptocurrency trading is a process of buying and selling digital coins. It may be long-term and short-term. In long-term investments, the buyer holds currency for an extended period. While he keeps it, he examines it thoughtfully, and later, using the knowledge sells it in the most appropriate moment with maximum profit. In short-term trading, the currency may be sold in a few hours after buying. It allows a seller to earn money, using the difference in price because of the currency volatility.

To make money trading bitcoin or other e-currencies, firstly you have to create a cryptocurrency wallet (it is like a bank account, but for digital currency). Most of the trading platforms offer it for free. We recommend having 2 or more e-wallets, as it is risky to keep all the money on one account.

Then choose the cryptocurrency exchange and the coins you are going to invest in. Read about all these steps in more details below.

How to trade Bitcoin: get your money into the market

All the trades involve Bitcoin. This is the primary and essential digital currency; to buy it you may exchange the fiat money in the exchange. The list of cryptocurrency exchanges gets bigger every day. However, the easiest way to buy bitcoins for beginners is through CoinBase. You will have to link the bank account or a credit card to the system. After the verification, you can buy the Bitcoins directly or transfer the money into them.

Note: CoinBase provides only top 4 cryptocoins like Bitcoins, Ethereum, Bitcoin Cash, and Litecoin. To buy other best altcoins 2018, you may use other exchanges: GDAX, Kraken or Uphold. These are the most influential coin exchanges. They work using the same scheme, but still, there are slight differences. Check out the official sites to choose one just to your liking.

When you are doing the exchanges research, pay attention to the older exchanges with the best history. The other criteria of the safest way to buy bitcoin to take into consideration:

  • The amount of the fees for a trade, an exchange, and a deposit.
  • Currency. Some exchanges offer transactions of the basic currencies only (like CoinBase), the others provide all kinds of minor altcoins (Poloniex).
  • Safety. Choose the exchanges where you need to verify your personality.

Main criteria of cryptocurrency: review for bitcoin traders

After you choose your best way to buy bitcoin, you may start making money on trading. Actually, you can just keep it until its price gets higher, and then sell it. Another option is to buy another cryptocurrency for bitcoins and earn money by trading it.

To choose the best e-currency to invest, take into consideration its characteristics. Check out our helpful tips on how to trade cryptocurrencies with profit:

  • Capitalization. The coin mustn’t be lower than 150th in the list on the exchanges. The lower the coin’s position – the less volatile it is;
  • Volatility. If the cost changes dramatically, there is a great chance to buy it cheap and sell it for a big price;
  • Coins amount. The fewer coins are better for you since the value of one coin will be higher. The perfect coin amount for trading is less than 10 000 000;
  • The number of trades per one day. Choose the coins, which participate in many trades;
  • Coin cost. Buy the cheapest cryptocurrency as its potential to grow in price is more significant.

Overall, we recommend you to invest in Ethereum and Ripple if you are a beginner. These are quite safe currencies to invest, as they are accessible and high-volatile coins.

The main tip: always invest in the currency, when it’s falling in price. After considering all the above-mentioned factors, choose one among the cheapest currencies with great potential. If it as a high-volatile coin, which is involved in lots of trading, it will probably gain its price soon, and you will sell it with profit.

The best way to buy and trade ripple and other e-currencies in UK

If you have read this article attentively, you already know what is the best way to buy Ethereum in the UK and how to trade it. Look through our checklist before trading:

  1. Create a cryptocurrency wallet. The most popular online wallets in the UK are Blockchain.info, Coinbase, and a GreenAddress.
  2. Choose your digital currency exchange. The most significant cryptocurrency exchanges available in the UK are Binance (trades the most popular coins, supports lots of languages), Kraken (multiple e-currencies are available for transfer, an abundance of payment methods is included), Uphold (35 currencies are available, the trading fee varies from 0.65% to 3.65%).
  3. Invest wisely. Always do research before trading. Choose coins with high volatility and capitalization, but with low cost. And remember: invest only the sum of money you can afford to lose. Cryptocurrency trading will bring you lots of money just in case you make all the decisions understanding the possible risks and consequences.

Are you ready to start?
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