The crypto world is growing bigger by the second because there are new players looking to join the game. You can be a user or a trader, and in both cases you’ll get to enjoy the benefits of the various kind of cryptocurrencies.
But if you’re looking to trade you needn’t go the way of trial and error. In other words, you can go for a safer way, by taking some knowledge with you. By covering the basics you’ll take better steps when going about your crypto trading career.
A cryptocurrency isn’t a currency you can touch as it is online. This is a virtual asset that comes with value. That’s why certain companies and businesses accept it as a payment method. Transactions are possible and they are pretty fast.
The best part about using a cryptocurrency is that no one really knows your identity. No third party can access your assets and you can see the record of each transaction you make without the need of maintenance and the pesky fees that come with them.
When it comes to making a transaction happen you’ll need 2 keys. The public one is needed for the connection or link to be made between both parties. Once that’s established, the sending or receiving of assets can commence upon confirmation with the private key which you also use for accessing your assets. That’s why it’s called a private key and needs to remain that way.
Blockchain technology is vital to cryptocurrencies. This kind of technology makes the transactions and keeps you anonymous. But the one benefit of crypto is the profit potential. This is what motivates people to start trading such assets.
However, the profit potential is closely knit to the volatility of the currency. So, the value of assets can go up, which is great, and go down, which isn’t that great. Low values can be good for newbie traders looking to get some assets. And when their value rises they can profit by selling these assets. Be aware of your assets’ value at all times, as it will tip the balance in or against your favor.
This is one way you can trade crypto and there are many other trading practices out there. But you’ll need a wallet and a trading platform to get to the next stage of trading. Both these things are processes each crypto trader needs to go through. First up is finding the platform.
A Crypto Platform
Trading platforms are out there and there are plenty of them available. You’ll find they have different features and cover a variety of cryptocurrencies. But you’ll still need to do some digging if you’re looking to go for one. As a starting point you can go for the popular platforms, like the ones listed on https://tradingplatforms.com/uk/ . They have enough features to sustain a large client base so they must be doing something right.
So visit a few such platforms and see what they offer, but don’t forget to see how they treat their customers. Customer reviews will show you if a platform is worth your while or not. The most important point to look out for is the history of the platform and if it has a history of online attacks. If this happens to be the case, then the platform might be hit again and your assets aren’t safe there.
So, go for a different platform, with a clean history and one that takes cares of its customers. Once you’re found it you can set up an account and prepare a budget for your first buy. This will be the first asset you’ll have as a crypto trader and you’ll need to store it somewhere. That’s why you’ll need a wallet.
A Crypto Wallet
Just like there’s more than a single kind of cryptocurrency available online, there’s a variety of crypto wallets available out there. You can start with the popular ones again and see the features they offer as well as how they treat their customers. In general, you’ll get 2 kinds of wallets online and these are the hot and cold ones.
The hot ones are quite convenient as they will stay online all the time. In other words, you can access your assets when it comes to trading, but they are prone to hacker attacks, which is why such a wallet makes you susceptible to online threats. Then you might opt for a cold wallet that just stores your assets and keeps them safe. You’ll need to connect to the net each time you’re looking to trade, but you won’t need to worry about safety.
At the end of the day, you should look for a wallet that suits your needs. If it has the right features, takes care of its customers and is an all-round great wallet then you should go for it. Once you have a wallet, then you’re set on your journey to becoming a crypto trader. The more you trade the better off you’