What is cryptocurrency trading?
When Satoshi Nakamoto first introduced cryptocurrency, it completely revolutionized the world of finance. The new currency is anonymously encrypted through blockchain technology to confirm transactions between users without any governmental involvement.
This decentralized currency can entirely change how people view traditional investments or even do transactions online. Because this novel currency possesses so much potential, many people are interested in using their fiat currency (government-backed currencies like USD) for cryptocurrency trading.
You can do cryptocurrency trading on exchanges where you buy and sell cryptocurrencies at the current market rates. Many websites have automated cryptocurrency trading applications that allow users to automatically transfer newly bought coins into another digital wallet or their bank accounts, thus eliminating the need for manual entry.
Because the market changes every day, it is vital to check cryptocurrency exchanges frequently for updates on new coins or changing prices. Some websites have listings of different cryptocurrencies available and many different rates available by country. Some factors to consider when buying and selling cryptocurrencies are the cost of transaction fees, the time it takes for a single trade to go through, and limits on how much currency you can exchange per week.
How do you trade cryptocurrency?
Decide which cryptocurrency you want to trade.
There are hundreds available, but some popular options include Bitcoin, Litecoin, and Ethereum.
Open a bank account for trading.
You’ll need to submit an email address and password, as well as your name and date of birth, on a cryptocurrency trading website. Because these websites are online, you will also have the option of setting up an “auto log-in” so that you don’t have to check your email every time you want to access the site.
Deposit money into your chosen cryptocurrency’s bank account
You can deposit money through various payment methods offered by the website, such as credit cards, debit cards, or even other cryptocurrencies, if the exchange accepts them. Make sure you know all of the fees involved with each type of transaction before making any purchases or exchanges because some exchanges charge fees for specific payment methods or may not accept your preferred method at all.
Wait for the exchange to go through.
You should check the website every day because once an amount of cryptocurrency is purchased, you will have to wait several days before it’s available in your account. The wait time depends on many different factors, such as how much money you are exchanging and what payment method you use.
Withdraw your newly acquired coins into another wallet (optional).
If preferred, this step can be done automatically by using an “auto surf bot” that can execute trades based on specific algorithms that alert users when their coin is about to increase or decrease in value. Some websites allow users to set up an auto surf bot to conduct all transactions automatically through one’s bank account, removing the need for manual entry.
Convert your cryptocurrency back into fiat currency if necessary
Some companies allow automatic conversion back to regular currencies, while others do not offer this service because there are high fees involved with these transactions. If you find yourself exchanging between crypto-to-crypto frequently, it would be wise to look for an exchange that offers low transaction fees to save money in the long run.
Did you know?
More than half of adults have heard about cryptocurrency, but only 1% own any. The largest group that hasn’t heard about it are people over 65 years old (32%), compared to 25% of Gen Xers and 22% of millennials. However, young people are more open to buying cryptocurrencies in the future. 35% of younger age groups say they’d consider purchasing cryptocurrency, while only 13% of older age groups say they will consider doing so. This suggests there are many untapped market shares for this new technology among older generations.
What are the benefits of trading with cryptocurrencies?
- There is no need for a third-party service like PayPal or Venmo.
- Most exchanges are open 24/7.
- Many people view cryptocurrency as more secure than banks because there is no central hub to attack and access sensitive information.
Use this link to start trading cryptocurrencies today.