How will you start trading? The traditional method will be approaching one the many retail brokers who lend you services like investment and trading in stock exchanges. If you a complete fresher to the market, the only option in front of you is to blindly follow their decisions. In this article, we have tried to compile some of the options in each step of trading in cryptocurrencies. You can learn here about the available alternatives for your path to wins.
Your wallet or your card?
You have two of the most used mediums for transactions: one or more cryptocurrency wallet or E-wallet and one or more cryptocurrency exchange. The wallet stores the coins or your virtual money in the form of their public and private addresses the exchange allows you to trade on any pair of currencies. You can also go for good exchange-cum-wallet brokers which allow you to both store and trade on cryptocurrency. This will ease out the application procedures, processing, and virtual money management.
Avoid getting confused with the assets
You have numerous assets, many types of them and many options of each type. This is on the regular stock exchange. A cryptocurrency exchange is different and you will trade only on digital currencies. The market is open 24 hours and by closing a deal, you are completely giving the right of ownership to the buyer.
Start with the most popular
There are too many virtual currencies to trade on. It is natural for a beginner to get confused. Therefore, here also you can use the universal rule of catching the one on demand. It is difficult to analyze the advantages and disadvantages of each currency and to keep them in mind right from the start of your transaction. The prominent ones can be expected to give you a good start. Do not confuse virtual currencies with stocks, assets, regular currencies like Dollar, Euro etc. Instead, select from Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dash etc.
You can invest, exchange and trade
It should be noted that you can invest in cryptocurrencies, you can exchange two cryptocurrencies, a cryptocurrency for a regular currency or trade on crypto pairs. The first two options are simple, to begin with, the remaining are complex and offered by selected brokers. The degree of volatility and complexity in cryptocurrency market is much more than the regular trading market.
Regulations and taxes are important for maintaining virtual money
Holding money in a digital wallet comes with its own expenses and monetary regulations. You are having a taxable asset in another form here, which can also be used for shopping and mainstream transactions. Where are these transactions carried out? Does the financial authority of that country allow trading in your cryptocurrency?