Cryptocurrencies are widely being adopted after the governments of various countries realized it’s importance. Investing in the crypto world is an art but if went wrong for any reason then the results could be catastrophic.
For the newbies in the field of cryptocurrency investment, there are a number of prerequisites to actually start the trade and they are explained below:
Know how Blockchain works. The Blockchain is basically a distributed ledger of records of transactions in the form of blocks. It is a continuously growing record that is secured from cryptography. It is inherently by design that the ledger is immutable i.e, it is resistant to the modifications of data. The decentralized nature of the technology is the one thing which makes it highly secure and prevents hacking and the security increases with time as more and more people join the Blockchain network.
Know top cryptocurrencies. The cryptocurrency topping the list is undoubtedly Bitcoin. Bring the first in the race of crypto coins, Bitcoin has some unseen advantages as the crypto even accounts for almost more than 50% of the total cryptocurrency market. Other prominent ones in the field are Ethereum, Litecoin, Bitcoin Cash, etc. The whole list can be viewed at coinmarketcap.com
Knowing all the risks. When compared to the traditional stock market, the cryptocurrency market is very unstable. The reason is that the size of the market is still very small and hence it renders higher volatility. The sentiments of the public may vary according to the kind of belief that the major players in the Crypto market have. The FUD driven market is very dangerous one where one negative decision can render the market fall considerably.
Read Bitcoin news daily. As discussed below and that the cryptocurrency market is so much driven and influenced by the news in the media. Hence it has become very important that one must keep themselves updated with the latest news in the field. A few possible sources for the best and the most updated news are.
Opening a brokerage account. Coinbase is entitled to be one of the best Crypto platforms for the trading of cryptocurrencies like Bitcoin, Litecoin, Ethereum, and others. It has two separate but we’ll integrated products: Coinbase and GDAX. Also the most notable part is that the company manages to abide by all the regulations set by the financial firm of the country. The simple Android and iPhone apps provide a seamless interface in order to trade that the cryptocurrencies.
Fund the account. Verification is necessary after the creation of the cryptocurrency account in order to meet all the requirements of the regulations by providing a soft copy of the passport or driving license. Following which the payment method can be set and respective payment method as credit card or debit card can be chosen. It is to be kept in mind that coinbase charges a transaction fee of 3.99% for all the credit card transactions. The users can also select PayPal as a payment method. Finally, move money into your cryptocurrency account.
Try buying and selling once the cryptocurrency account is ready and fund then the enthusiast can go ahead and try out using the cryptocurrency for various transactions. A single Bitcoin need not be used completely for the transactions, but fractions of about ⅛th of the value can be used.
Upgrade to GDAX. Once the beginner has tried out a few transactions and have and has become very handy with the procedures, then it is assumed that it is the perfect time for them to graduate themselves to the professional platform where we can transfer the cryptocurrencies between two exchanges very easily.
Study the charts. The cryptocurrency market trends can be understood by studying the price charts, therefore, doing a market analysis. The general concept behind analyzing the charts is that to get an insight of the general direction of the movement of the cryptocurrency.
Set limit orders. A number of provisions are provided by the many Android applications. They provide provision to set the limit Orders and once the limit is reached by the cryptocurrency a notification is sent to the user or the order might automatically get executed accordingly.