How to start cryptocurrency trading

The first and most famous cryptocurrency is Bitcoin, launched in 2009.

Today there are more than 9000 cryptos in the market, but Bitcoin is still the king.

Elon Musk, the richest person in the world, according to his tweets is holding Bitcoins and Dogecoins.

Today Crypto Trading is an attractive "sport". The interest in Bitcoin Trading has increased the latest years, but what makes Crypto Trading so popular?

Volatility: Bitcoin is an extremely volatile asset, more volatile than any other trading asset. Volatility is making crypto trading exciting because it provides huge price movements in a short period. There are plenty of opportunities for Day Traders, Intraday Traders or scalpers to make successful trades.
Price Performance: Bitcoin Price has experienced a great increase last 15 months and many retail investors around the world recorded significant gains. Crypto market performance was by far better than other assets (Gold, Oil, Shares, Forex) offering many opportunities for speculators to earn money.

Here is a step-by-step guide that will help you to trade cryptocurrencies online.

Step 1: Select the Crypto Trading Broker that fits your needs

Crypto brokers are trading Brokers that offer accounts in bitcoins and other cryptocurrencies. They operate an online trading platform where traders participate in the market and execute their orders.

Most Crypto brokers are based in offshore jurisdictions and they are not strictly regulated (if they are regulated at all).

There are many crypto brokers around the world, however, not all of them are trusted.

Before you select a broker, take into account the following:

Trustworthiness: Can the broker be trusted? Are Trading Conditions Fair? Are the Trading Fees charged fair? Have you read any reviews about the broker? How does he protect the clients' funds? (Some brokers use cold storage).
Trading Platform: Some brokers use the TradingView Platform, while others use the MetaTrader5 platform. Check out which Crypto Brokers offer MT5 platform
Trading Assets: How many Trading assets are available to trade? Only Crypto Pairs (ΒΤC/USD, ETH/USD, etc)? Stock Trading? Commodities?
Account Currency: All crypto brokers offer bitcoin accounts, but the trend is to offer other crypto accounts (Ethereum, Litecoin, Monero, etc). In addition, some of them accept also stablecoin deposits. Stablecoins are Cryptocurrencies but their price is somehow equal to a fiat currency. The most famous stablecoins are equaled to US Dollar (USDT, USDC, and DAI).
Leverage Levels: Cryptobrokers tend to have higher leverage levels than traditional Brokers. The lack of regulations in the crypto market allows Bitcoin Trading Leverage to be higher than other trading assets. Leverage multiplies the effect of your trading capital. Leverage is useful for traders with small initial capital allowing them to enjoy a higher exposure in the market. If you trade with 1:1000 leverage, 1 bitcoin has the power of 1000. The higher the leverage, the higher the risk. High Volatility combined with high leverage can send your profits to the sky.

Step 2: Open a Trading Account

After you have selected a Crypto Broker, you have to open a crypto trading account. Many crypto brokers accept clients with No KYC Verification, offering anonymous trading conditions.

Traditional Brokers offer only fiat currency accounts and obligate clients to verify their identity and the origin of their money (AML - Anti Money Laundering). They have to share with the broker sensitive personal data such as a copy of the National ID Card, a proof of address (utility bill, etc), and probably credit card or other deposit method details.

With no KYC Trading Brokers, sign-up process is easy. You need an email (can be a gmail or a hotmail that you created only for that reason) and a password. Some brokers do not require KYC but they require you to enter your mobile phone number. Even like that you still have some level of privacy.

How to start cryptocurrency trading Pulse Nigeria

Step 3: Fund Your Account with Cryptos

You have opened an account, so now you have to deposit cryptos to your crypto-trading account. If you already have bitcoins in a wallet, you may transfer the funds online from your crypto wallet to the crypto-trading account.

The problem is if you don't, you have to purchase some crypto. This can be done in a crypto exchange.

The bad news is that when you exchange digital currency to cryptos or vice versa in crypto exchange, KYC Verification is obligatory. If you want some more privacy you can purchase cryptos offline.

Ask your friends or people in your social circle if they own cryptos and want to sell them.

If the answer is yes he/she can transfer them to your crypto wallet and you can pay in cash. That way you keep your anonymity.

Step 4: Choose a Strategy and Start Trading

If you are a newbie to crypto trading, then you have to start from a DEMO Account. A DEMO account protects you from losing your capital and simulates real Trading conditions.

However, a trading plan is necessary. You have to use it to study the market, recognize trends, use technical analysis indicators and risk management tools (Stop Loss, Take Profit, etc).

A trend that is gaining popularity nowadays is copy trading. Some Trading Platforms offer this option.

Copy Trading works like this: You join a successful trader by contributing your capital to him. The successful Trader collects money from many Traders and makes his trades. If he profits, you profit analogically the capital you have contributed. If he loses, you lose the same way.

What makes this exciting is that you can choose among the best performing traders. Although past performances do not ensure future returns, there is a sign of traders' quality.

Copy Trading is also a solution for people that have a capital to invest in Crypto Trading, but they do not know how and they do not have the time to learn.

A great copy Trading Experience is PrimeXBT Convesting. Access to multiple markets by a single PrimeXBT account!

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