During the past several years, cryptocurrencies have been one of the hottest topics of the digital world. Because of their speed and security, millions believe that cryptocurrencies are the future of money and invest heavily in them through the process known as crypto trading.
In this article, we’ll take a look at what you need to start crypto trading, what are the most popular crypto trading platforms, ways to store your cryptocurrency, and how much initial capital you need to get started.
What is Crypto Trading?
Crypto trading is the process of speculating on the price difference between cryptocurrencies and buying or selling cryptos. Generally, crypto trading is done for two reasons: to either accumulate cryptocurrencies for the long-term or make money through the price volatility of the currencies.
What Are Key Crypto Trading Platforms?
Crypto trading platforms are the websites or apps where people come to buy or sell cryptocurrencies. As the popularity of cryptocurrencies grew, paired with the fact that the emergence of technologies allows people to build websites easily in almost no time, the number of crypto trading platforms increased as well.
Some of these platforms allow selling only one type of cryptocurrency, while others provide more options. Kraken and Coinbase are two of the most widely-used digital marketplaces. However, their features differ as Coinbase, in contrast to Kraken, offers insurance in case of a data breach.
Depending on your need, services offered by some platforms may be a better fit for you. For example, Binance, another popular trading platform, doesn’t support fiat money and allows only buying and selling of cryptocurrencies. The majority of the largest trading platforms offer real-time support through chatbots and a support team.
How To Store Your Cryptocurrency?
Like fiat money, cryptocurrencies need storing. Therefore, if you plan to start trading crypto, you need to have a crypto wallet.
Crypto wallets are software or hardware wallets. These wallets ensure the safety of cryptocurrencies and are highly secure. However, hardware wallets are generally considered to be safer because they are stored offline, and there is no risk of online attacks and hacking. Ledger is one of the most popular hardware wallets. For hardware wallets, there are many options available for Android, iOS, and Chrome.
In the case of both software and hardware wallets, access to cryptocurrencies is guaranteed through an access key; in case of losing, you will also lose access to your cryptocurrencies.
How Much Money Do You Need to Start Crypto Trading?
What comes to resources, the initial investment amount you will have will vary. Depending on the trading platform you choose, you’ll be offered a minimum trading amount for each of your transactions. However, the number is around $10. Each platform also has a set minimum for each cryptocurrency; for example, you may be unable to buy less than 0.0001 BTC. There is no right or wrong answer here, but it depends on the resources you are ready to allocate.
Key Takeaways
Whether you treat crypto trading as a short-term investment with the hopes of quick financial gain or look to buy crypto and store them for the future, crypto trading is both interesting and risky. Make sure to learn as much as you can about the trading process, research different wallets, and trading platforms to find the best option working for you.