With the growing excitement in the public about cryptocurrency and blockchain, people should also know everything about trading with them. Trading in any type of business can be a really profitable thing. To help people who might be interested in trading, we will explain what is cryptocurrency trading, how to store cryptocurrency, and how to trade cryptocurrency for cryptocurrency or fiat.
Cryptocurrency to Fiat Trading and Otherwise
For someone who wants to start trading with cryptocurrency, they need to have cryptocurrency to even do that. You can obtain cryptocurrency by mining or by trading for it. The most casual way of obtaining any kind of cryptocurrency is with fiat currency. This exchange is possible at places that connect the normal world currencies like the dollar or euro with digital cryptocurrencies like Bitcoin and Ethereum. These places are called Exchanges.
As with any place where you would invest money, you need to make sure this place will not just steal off of your money and run away with it. These things matter when looking for an exchange place:
Safety: Safety should always come first. You should check if the place looks safe and a major factor should be ID verification from people who want to do exchanges. Anonymous exchanges tend to be unsafe and a risky bet for your money. Since it is your hard-earned money, you should be careful and only invest it in safe places.
Reputation: Reputation always matters when doing business. Look at other user reviews about this exchange place, check how secure it is with their money, has there ever been any complaints. Internet will be your best tool for doing that.
Validity: Make sure this exchange place is available in your country or area. Some sites have restrictions depending on where the user is coming from. So before wasting your time, check if the exchange will be able to do any kind of action with you.
Exchange Rates: Exchange rates are a major factor when it comes to trading. You should always search and use the closest to 1:1 exchange rate because that will allow you to save more money. So before exchanging anything, look into different exchanges and what exchange rates they offer.
This guide will use Coinbase.com for explaining trading processes because Coinbase is currently the most popular exchange website.
Making Your Account
Setting up your account at Coinbase is easy as registering for any other site. The only difference would be that since you are creating an account for yourself you should make an Individual account instead of a Business account.
For security measures, it is always smart to set up any kind of two-step authentication. Since we will be dealing with money, this is an important thing.
In Coinbase there are different payment methods and each of them has its own advantages and disadvantages. To check them, look at this list:
Buy and Sell: Buying and selling refer to buying or selling Bitcoin, Ethereum, Litecoin, etc.
Deposit and Withdraw: This stands for the possibility to add credits to your coinbase account.
Since this website deals with money and data, you will need to verify your identification. It might sound complicated to do, but it is not and it is actually pretty straightforward.
Time to Start Trading
After you have done all the steps to set up an account, you can start trading. This list contains all the types of cryptocurrency you will be able to work with on the Coinbase website:
Protecting and Storing Cryptocurrency
To protect and store your cryptocurrency that you either traded for or mined, you will need to set up a wallet. There are different kinds of wallets: online, hardware, paper, and mobile. To learn more about different types of cryptocurrency wallets, check out the post about wallets:
Good Luck with Trading
If you followed all these steps, then you are now able to buy, sell, and trade with cryptocurrency. If you do not want to lose money and make a profit from doing that, you should always check the exchange rates and the values of different cryptocurrencies. The easiest way of making your first profit is to buy when the value is low and sell when it’s high.
