How to invest and trade with cryptocurrency

How to invest and trade with cryptocurrency

The 21st century has seen the evolution of technology and the world turning into a global village. Cryptocurrency is an exciting new trading platform that has hit the market. The general idea about how trading in cryptocurrency occurs is one buys coins using USD; coins may include Bitcoins(BTC) Etherium(ETH) or Litecoins. These coins can be traded on a specific platform a good example is Coinbase which is a more straightforward and more widely used platform. The currency that one buys can then be sold back into USD, or one cryptocurrency can be traded with another one. The procedure for trading cryptocurrency is a straightforward thing, but one has to consider various factors to understand what they would be trading their hard earned cash for. First and foremost, the cryptocurrency market is a volatile market, and one should be open to the fact that they would either lose or make a lot of cash for themselves in a split second. However, it is a risk worth taking if one plays their cards right. Despite the fact that cryptocurrency exchange may have similar general mechanics as compared to the regular stock exchange, they differ significantly regarding specifics and different entities. The cryptocurrency exchange requires using a broker in this case Coinbase or GDAX-an upgrade version of Coinbase. Investors have a wide range of choices to pick from. One could decide on GBTC trust where the exchange is similar to that of the stock market, a cryptocurrency IRA, an exchange broker wallet like Coinbase and GDAX or just a platform to buy coins and store them. The investment options have their merits and demerits, but it goes without saying that Coinbase and GDAX are the most appropriate as it allows one to invest and trade their coins using a single platform.

However, Coinbase only allows one to buy, sell and store the cryptocurrency if in need of a more sophisticated platform for exchange one can use Kraken, Binace, Bittrex, and GDAX all of which are Coinbase's extensions. It cannot be stressed enough that the venture is a risky one and one has to consider cutting back on risks, not investing or long with one's funds and also hedging. Also trading with the leading coins in the market cap such as Bitcoins, GBTC and Ethereum would reduce the risks by a margin. Aside from trading and using the cryptocurrency or transactions, one could mine the coins using a graphic processing unit and a software.

For those interested in starting up the investment and trading in cryptocurrency, one should start off by picking a company with a good track record and provides an exchange platform and wallet for the coins. One should also start by trading with the popular cryptocurrencies such as Ethereum(ETH) and Bitcoins(BTC). It is vital to understand that the process of trading cryptocurrency takes time to fully understand and entirely get the hang of it. Coinbase is an appropriate exchange platform to start trading cryptocurrency, and one can upgrade to GDAX and other Coinbase related platforms. Crypto 77 Trading cryptocurrency in pairs could be a good venture, but it could be a more complicated process and also poses a higher risk.

Getting started to trade with cryptocurrency requires one to signup for Coinbase so that a digital wallet could be created. The next step is linking the bank account, debit card, and credit card so that one could exchange their local currency for digital currency back and forth. After connecting the bank account to Coinbase, one can then begin to trade using the USD. A few tips to look out for when using Coinbase is that it will require a lot of personal info, but that is just a standard procedure. Using Coinbase would prefer a bank account because the rates are lower compared to using a debit card and credit card. However, using a bank account would take a while since the bank has to verify the process of pairing with Coinbase. For security purposes, one should consider setting up an authentication that has two factors where a code is sent to the phone when one logs in to the account.

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