5 Simple Steps, Learn How To Trade Cryptocurrency – Ultimate Guide
In this guide, let’s talk about how to trade cryptocurrency.
Reading Time: 20 mins
Anyone who is remotely interested in learning about crypto has taken part in some form of trading. As it gets more and more mainstream attention, newer players want to enter the market and get their slice of the crypto pie. So, to help those people enter this exciting market, we have created this “Cryptocurrency Trading Guide.”
In this guide, we are going to take you through all the steps in order for you to become a crypto-trader. We will be going through the following sections:
- Fiat to Crypto Trading.
- Storing Cryptocurrencies.
- Crypto to Crypto Trading.
How to trade cryptocurrency?
Fiat to Crypto Trading
So, you have some money that you want to invest. How are you going to go about it? The portals which connect our world to the crypto-worlds are called “exchanges.” There are a lot of exchanges out there, however, before you choose to invest in one, there are certain things you need to look out for. Let’s call this the “Exchange Checklist.”
- Validity: Before you even do anything, first make sure that the exchange is available in your area. Eg. Coinbase, one of the largest exchanges, is not available in India and Indonesia. So before you do anything please check this.
- Reputation: Next thing that you need to check is the reputation of the exchange. Are people happy with their services? Has it been hacked recently? How secure is it? Have people complained about it? Twitter and Reddit are good sources for checking this.
- Exchange Rates: Up next we have the exchange rates. Different exchanges have their own exchange rates which may vary. Do your homework here and research 3 or 4 exchanges and their rates.
- Safety: Please always choose exchanges which need some sort of ID verification from you. Even though they may take time, they are easily 100 times more safe and secure than anonymous exchanges. At the end of the day, it is your hard earned money. You must take that extra step to keep it secure.
You can do your own research and choose your exchange, however, in this guide we are going to go with the most popular crypto exchange out there Coinbase. So, let’s start trading!
Signing Up and Account Creation
Signing up is a very simple process. The moment you land on just click on “Sign Up”. You will now see this screen:
Since you are creating your own personal account, create an “Individual” account as opposed to a “Business” one.
It is a simple matter of putting in your:
- First Name.
- Last Name.
After you just have to agree to their Terms and Conditions and prove that you are not a robot (if you are a robot and you are reading this then “Hail Skynet!”).
Ok, now you have an account set up.
Security and Account Addition
Next up is security and Account addition. In this section you will need to do the following:
- Phone Verification: Phone verification is necessary to give your account a 2-step verification process. Firstly, you’ll have to enter your phone number.You will receive a text message with a verification code. Simply put in that code and you are done.
- Adding a Payment Method: Payments in Coinbase can be done via bank account, debit card, and wire transfer. In order to understand the advantages and disadvantages of all these three methods you can simply refer to this table:“Buy” and “Sell” refers to buying and selling Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.“Deposit” and “Withdraw” refers to depositing and withdrawing credit in your Coinbase account. The Coinbase help guide will show you exactly what you need to do in order to manage your payment methods.