There are various people new to the concept of cryptocurrency and trading. This blog shines light on the topic “what is crypto trading and how does it work?” for beginners who want to start trading.
In short words, crypto trading is a similar term that addresses the process of buying and selling digital coins in the crypto market through online platforms, with an aim to generate high ROI. It is quite similar to investing in the stock exchange of a company, but in the crypto market we invest in various famouly known coins.
What is Cryptocurrency? A digital currency which was launched with the concept of providing people with financial stability and seamless transactions. We are explaining what is crypto trading for beginners because people have been more interested in digital currency since the found out the difference between cryptocurrency and traditional currency.
The fact that cryptocurrency is a decentralized currency makes it easier to use without charging high fees for the transactions. It is not controlled by any government authorities due to which people have been adopting it so well.
Let’s talk about what it is and how to invest in crypto to make money.
What is Cryptocurrency Trading? Simple Definition for Beginners
Cryptocurrency trading is the process of keeping a track of the movements in the price of the coins. This is done by using a trading account and purchasing or selling the crypto coin through an exchange. The purchasing and selling works this way; if you think that a cryptocurrency’s price will rise, you can go long. If you think that the price will go down, you can go short.
In the cryptocurrency trading process, you will need support from a cryptocurrency exchange which allows you to purchase the coin yourself. For that, you will need to create an account and start with the trading process.
If you are not aware of the process, find the steps below.
Learn About How Cryptocurrency Trading Works
- Selecting a Trusted Exchange: It is very much necessary to select a reliable and trustworthy crypto exchange platform to buy, sell and store crypto coins. Popular crypto exchange platforms in India are CoinDCX, WazirX etc.
- Creating a Crypto Trading Account: Register yourself by providing KYC details in the chosen crypto exchange platform for verification and further transactions.
- Add Money into Your Account’s Wallet: Deposit funds into your accounts wallet using your national currency i.e INR, USD, EUR etc.
- Placing Orders: Decide in which cryptocurrency to trade with and place orders accordingly.
- Storing Your Digital Coins: After purchasing, store your crypto coins in the secure coin wallet.
- Monitoring Crypto Market: It is very necessary to regularly monitor volatile crypto markets to make informed decisions on when to buy and sell crypto coins.
Best Cryptocurrencies That You Can Trade in
Bitcoin is the pioneer of digital cryptocurrencies. Due to its very limited supply and high demand, it is the most expensive crypto coin in the world. In the current market scenario, Bitcoin is priced at approximately $97,844 USD.
Ethereum is the second most traded crypto coin. It is a leading platform for decentralised apps and smart contracts. ETH is currently priced at approximately $3,367 USD.
Glossi
A relatively new player in this field for learning the cryptocurrency trading process. If we talk about the technology of this coin, it is a layer 4 and Web3 coin which works on a hybrid technology. The coin works on Meta, AI, NFT, Gaming, and DeFi technologies. This coin is the native coin of the Gloss blockchain. Glossi coin currently priced at approximately $0.22 USD.
Binance Coin is the native coin of the Binance Exchange, that is used to pay transactions and other trading fees of the platform. Currently it is priced at $722.12 USD.
Solana is a blockchain platform. It is mainly designed to host decentralised applications. It is a fast and low fee transaction platform. $216.32 USD is the current price of Solana.
There You Have it!
Crypto market is a highly volatile market wherein it is important to take careful investing decisions. Once you learn what is crypto trading and how does it work, you can understand that investing in crypto needs informed decisions otherwise there’s a very high risk of making a loss. Moreover, it is important to know which crypto coin you should consider for investing or trading in according to the market standards. And then comes the exchange that you should choose for investing purposes. So, you should always conduct a thorough research of the market trends and financial background before engaging in crypto trading.
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