Are you guys thinking about getting into the world of cryptocurrency? If so, you’ve probably been put off by all the confusing terms and acronyms that you see in most articles. Newbies can definitely get overwhelmed. And yet, millions of folks are trading in the crypto market every single day. In 2022, the daily trading volumes averaged a staggering $855 billion. That’s a lot of moolah, my friends. So, today we want to help out the beginners by breaking down what trading cryptocurrency is all about. By the time you’re finished with this guide, you’ll know all about the different types of exchanges, whether or not you need a crypto wallet to trade, and what kind of strategies might work for a beginner. We put together this guide to help you wrap your head around all these new terms. So, let’s get right into it, shall we?
Before we dive into those questions, let’s make sure we’re all on the same page here. What exactly is crypto trading? Well, it’s the process of buying and selling digital assets, like coins, tokens, or NFTs, in the world of cryptocurrency markets. You can swap a coin like Bitcoin for another asset like Ethereum, or trade it for regular old fiat currency. And then of course, there’s blockchain technology. It’s the underlying tech that all crypto assets are based on. It’s like the backbone of the whole thing. Transferring crypto, the network verifies and approves the transaction. And mining? Well, that’s when you verify transactions and add them to the blockchain. There are some types of mining that don’t require expensive equipment. There are even apps out there where you can mine just by using your phone. I mean, come on, how cool is that?
So, we’ve got the basics down. But how do you make money from all this stuff? It all comes down to market volatility. Price movements are where it’s at. For example, you buy a bunch of Cardano for $600 – you’re hoping that the price of Cardano will go up, and your holdings will be worth more than you originally paid for it. Price swings happen because of things like demand, coin supply, news and media coverage, and technological advancements in other sectors. Government and economic events don’t really have an effect on the price of crypto, which makes it pretty unique, right?
Now that we’ve got all that down, where can you actually trade these bad boys? There are plenty of places, but let’s focus on the two most popular ones: crypto exchanges and brokerage services. Crypto exchanges are pretty straightforward. These are online markets where you can buy and sell Bitcoin and other assets. And then there’s brokerage services, which pair you with a broker who can give you access to all the trading tools you need. It’s a bit more hands-on than a regular exchange. Pretty cool, right?
Before you do anything, you need a wallet to store your crypto. There are hardware wallets, which are physical devices that are not connected to the internet. And then there are digital wallets, which are online and are more vulnerable to breaches. Makes sense, right?
Alright, so that’s the low-down on everything you need to know about trading crypto. Go out there and make some dough, my friends. And don’t forget to do your research – this stuff is complex, and there’s always more to learn. Happy trading!