Cryptocurrencies trading is one of the most profitable and accessible field in financial sector. That is why it attracts more and more users. This article is ideal for those who are just starting their cryptotrader’s way and is preparing to enter the market.
Create your own wallet
To withdraw the cryptocurrency from the exchange you need to create your own wallet. It will be needed to update the account on the trading platform. We recommend to create a wallet for Bitcoin. This cryptocurrency is supported by the vast majority of exchanges and will allow you to easily buy any altcoins.
One of the most reliable wallets for BTC is Blockchain.info. It is quite simple to use and it provides secure storage of your funds. If you plan to work with large amounts, you need to think about purchasing a hardware wallet. It is safer and better suits for long-term storage.
Choose a cryptocurrency exchange
Crypto exchange is a trading platform where the buying and selling of cryptocurrency are made. Today there are a lot of different resources:
• Bitstamp, etc.
How to choose the right platform? The first thing you should pay attention to is the daily trading volume. The higher it is the more liquid the assets traded on the exchange will be. In addition, check the list of cryptocurrency and fiat, which is available on the platform. Some exchanges do not support conventional currencies (dollars, euros, pounds, etc.). To use them, you need to have a cryptocurrency from the very beginning.
There is another equally important factor in choosing an exchange – its rating and reviews. Even with large volumes of trades and a wide range of available directions, the platform can have significant shortcomings as delays or slow payments, lack of appropriate technical support, etc. Various forums, rating platforms, etc. are suitable for evaluation. We advise you start use Poloniex, Binance, Bittrex or Bitfinex exchanges: you can Integration with this exchanges in FinTab system. We introduce it in video.
Begin to understand the exchange
So, we have selected the exchange, what are our further actions?
1. Create an account on the exchange. To do this, we need to fill in the standard form, where you specify your full name, e-mail address, country, phone number (the list may vary depending on the selected exchange).
2. Verification. Some platforms do not allow access to trading operations without going through the verification procedure, so you will have to send scans of your documents to tech support. Usually the procedure takes from hours to several days.
3. Security. We recommend that you immediately turn two-factor authentication so no one can access your account.
Now you need to update the account on the platform. This is usually done in the Deposit / Withdraw section. Again, the ways to update can vary depending on the platform.
Now, on the example of the Binance exchange, we will deal with the interface of exchanges.
• The state of the selected market: in the example – BNB / BTC (highlighted in gray on the screenshot).
• Current open orders to buy and sell (highlighted in red).
• The orders you opened for the moment (highlighted in blue).
• Order history for the last 24 hours (highlighted in black).
• Rate chart (highlighted in green).
• The panel for open buy and sell orders (highlighted in yellow).
• List of available markets on the exchange (highlighted in orange).
The interface of most exchanges matches as described above. Usually only layout of interface some elements and their external design changes.
Let’s start trading
Now that we have our account on the exchange, we have updated our internal account and understood the interface, thus, we can start trading. To do this, we choose a suitable market and create a buy or sell order, depending on the current situation. If the set price matches ask price, then the order closes quickly, if not, then you have to wait.
In previous articles, we wrote about arbitrage trading, you can get acquainted with it here.
We do not recommend trading cryptocurrencies blindly. To make your trade more efficient and profitable, it is necessary to study the basis of fundamental and technical analysis, namely:
• Using various trading indicators.
• Analysis of the news background.
• Evaluation for various factors how promising the asset is, etc.
In addition, you should learn how to properly compile and track a crypto-portfolio. The FinTab system will help you with this. At the first stages, you can borrow it from more experienced traders, and then start to develop yours.
Also, do not forget that the first cryptocurrency can be obtained completely free of charge – for bounty programs, distributions, etc. It can be a great help for a beginner trader who only knows the basics.
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