As cryptocurrency trading is becoming more mainstream, alluring new traders who want to enter this lucrative market to have their share of the crypto pie. If you want to kick-start your crypto trading career and already dreaming of how you can earn in millions, then it is also crucial to adjudge what risks can come your way. Undoubtedly, trading in cryptocurrencies is as exciting as its sounds but there is no shortcut to success. Simply put, crypto trading can be a risky venture. So before you take the giant leap, it is important that you do the homework right.
This article will take you through the basics of cryptocurrency trading that you should know to mitigate your risks and increase profitability from such investments.
What is Cryptocurrency Trading?
Cryptocurrency trading functions on the same concepts as in stock exchange – you invest fiat money to trade one crypto coin for another, considering that the currency you buy will increase in value. You buy crypto, store it and sell or transfer it only when the value escalates to earn high profits. However, it is not that simple as it might seem because just like any form of trading, it works on speculations and involves huge risks. This is particularly true if you aren’t wise enough in choosing the right crypto coin to trade-in.
Trading Fiat Money to Cryptocurrency
You have some fiat money that you want to trade in cryptos. How to go about investing the same in cryptocurrencies? To start with it, you need to register with a cryptocurrency exchange platform. With the fast-paced popularity of crypto trading, numerous exchanges have mushroomed out there. But before you choose one, here is a quick checklist of what you should consider:
· Credibility: The first thing you should consider about the exchange is its reputation and credibility. For how many years it has been in the industry? Are other traders satisfied with their services? What level of security does it provide? Are there any complaints about the exchange? Has the crypto trading platform been hacked?
· Security: High-end security is one of the most important factors to consider in choosing a trading platform. It should at least provide two-layered user authentication to allow traders to access their account or wallet.
· Rate of Exchange: Considering the exchange rates is important before you choose a cryptocurrency trading platform. The rates may vary from one exchange to another; therefore, check the rates from three-four exchanges and choose one that offers the best value.
· Availability of Services: This is an important factor to consider because not all exchanges offer trading facilities across the world. For example, Coinbase – a leading cryptocurrency trading exchange – does not provide services in Indonesia and India. So before you register, keep this factor in mind.
Do your research on the web or seek recommendations from an expert to choose the right cryptocurrency exchange platform. You can also consider choosing a trusted offshore banking partner that provides approved clients with the option to buy, sell, deposit, withdraw, transfer or liquidate cryptocurrencies. One such reliable banking institution is the SUISSE BANK that provides a safe and reliable platform for blockchain banking and cryptocurrency trading.
How to Start with Cryptocurrency Trading?
Discussed here are the key steps you have to follow to get started with crypto trading. The procedures may vary from one platform to another, but the essence remains the same.
· Sign up with your basic details such as name, email id, etc. and activate your account
· Next, you have to integrate 2-step verification to secure your account from hacking and malware
· Add your preferred payment method depending on the type of investment you are ready to make. The options may include Debit Card, Bank Account, Wire Transfer and others
· Finally, you have to verify your identity as per KYC, AML or other statutory regulations applicable in that country
Once you have set up an account and verified your identity, you can start trading in any crypto coin of your choice.
Getting an All-in-One Wallet
For a seamless cryptocurrency trading experience, many exchange platforms provide an all-in-one wallet where you are in complete control of all transactions and activities. Using the wallet, you can buy, sell, transfer, withdraw, deposit or convert your crypto into fiat money. The wallet is typically secured with high-end user verification codes, ensuring complete peace of mind that your cryptocurrency is safe. It gives you 24/7 access, full control, security from unauthorized access and the ability to back up your funds.
Having a wallet is the best way to safeguard your cryptocurrency. It saves your Public Address and Private Key, providing an easy, quick and secure method to send, receive or store your cryptos. Public Address is where others will send you money, while Private Key is your tool to unlock and access the wallet and send money to others. Never share your Private Key with anyone.
SUISSE BANK is a banking institution that not only serves as a crypto trading platform but also provides its clients with an all-in-one wallet where you are the custodian. In addition to blockchain banking, they also provide Debit Master Card, offshore banking services and the option to buy, store, sell, convert or trade physical gold.
Storing Your Cryptocurrency
Does your exchange provide the option of crypto storage?
Typically, cryptocurrency storage is of two types – Hot storage and Cold storage.
Hot storage is like your physical wallet which provides fast and easy access to your money but may be vulnerable to security breaches. On the other hand, cold storage is similar to your savings bank account which is not convenient to access day-to-day but is highly secured. Depending on your trading size and frequency, you can choose a crypto storage type that suits your requirements.
Cryptocurrency trading, when done with smart speculation, can help grow your wealth. It is a great investment tool to diversify your risks and increase profitability. However, it is always recommended to read the terms and conditions of a cryptocurrency exchange platform carefully before investing. Seek expert advice to trade in cryptos and earn high revenues.