Things to Know When Trading Cryptocurrency
It’s time to talk about how to trade cryptocurrency. For anyone who is even the smallest bit interested in cryptocurrency, this article is for you as we explain the ins and outs of how to trade this wonderful form of digital currency. So, first of all, you need money to invest.
Now you have money that you are ready to invest, you have to figure out exactly how you’re going to do it. When we refer to the portals that connect our regular world to the world of cryptocurrency are called exchanges. There are a whole lot of exchanges out there in the big wide world and before you settle on and choose one to invest in, there are definitely things you need to look at first.
Before you start, you need to tick off everything on this checklist.
- Safety- When you are choosing exchanges, always choose on that requires ID to verify you, otherwise, you may be looking at something that isn’t legit. Though it may be annoying and take more time to verify your ID, it is far safer than going through with something that doesn’t require verification. One thing to keep in mind is that this is your hard-earned money and that it is worth taking extra precautions for.
- Validity- Making sure that your chosen exchange is available in your area is definitely recommended. For example, Coinbase, which is one of the largest exchanges is not available in Indonesia or India. That is why before you do anything, you should check if it is available.
- Exchange rates- Then you need to take a good look at exchange rates. Exchange rates will vary between different exchanges, so it is recommended that you do your research before committing. You can do your research by checking out 3-4 different exchanges before settling on a single one.
- Reputation- This doesn’t just stand for cryptocurrency, but mainly everything you look at putting your hard-earned money into. You need to make sure that the exchange you choose is valid and has a legitimate reputation. Do they have good reviews? Are people happy with their service? These are all things that must be considered.
Is signing up simple?
When you open an account for anything cryptocurrency related, you will likely be asked to provide a few things such as:
- Password
- First name
- Last name
- Phone number
- ID
Then, once you agree to the terms and conditions, and prove you’re not a robot, you will then be able to proceed.
The last thing to note is that you will need to protect your cryptocurrency. You must have a wallet for this. Your wallet saves your private key and your public address which helps you when it comes to sending, storing, and receiving cryptocurrency. Another thing to remember, that is not only highly important but crucial, is that you must keep your private key private at all times as the name implies. The only thing people should know about is your public address, but never your private key.
