Beginners Guide to Trading Cryptocurrency
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Crypto Trading Basics
From the money of the future to an exceedingly risky asset that shouldn’t be touched within a ten-foot pole, cryptocurrency is confusing… However, if you think it’s something like PayPal or bank transfers, you’re wrong. Surprisingly, it’s way more interesting. But the bigger question is: should you be throwing away your hard-earned money in the crypto craze? This beginners guide to trading cryptocurrency will enlighten you with what crypto enthusiasts call Gold 2.0.
How Crypto Trading All Started – From Digicash to Bitcoin
The history of cryptocurrency dates back to 1980, 42 years ago. The concept was initially proposed to create money that could be transmitted anonymously without centralized institutions. American computer scientist, cryptographer, and now a pioneer in cryptography and privacy-preserving technologies—David Chaum created Digicash, or digital cash.
Founded in 1995, it was an early cryptographic electronic payment system that needed a user system to withdraw money from banks and certain encryption keys to send money to receivers. After three years, Nick Szabo invented Bit Gold in 1998, often referred to as a forerunner of Bitcoin that demanded users to operate computer resources to crack cryptographic challenges and ultimately win a prize. So, when you combine Chaum’s and Szabo’s ideas, you get Crypto.
However, Szabo could never solve the double-spending problem without the use of a central authority, and the history of Bitcoin and following cryptocurrencies did not begin until a decade later when a white paper: Bitcoin – A Peer to Peer Electronic Cash System was published by a mysterious person or individuals using the pseudonym Satoshi Nakamoto.
The mystery took a turn when someone on IRC chat pointed out that in Japanese, “Satoshi” means ‘wise.’ But later, people discovered that this Satoshi person is not Japanese because he spoke English just like a native speaker. Someone else suspected that the name was a clever combination of four giant tech companies: SAmsung, TOSHIba, NAKAmichi, and MOTOrola.
Fast forward to January 3, 2009, when the first block, known as the genesis block, was mined—the Blockchain officially started. A week later, the first transaction took place. It was only available to miners for the first few months for less than 14 cents, with no real monetary value.
The first economic transaction took more than a year to complete when a Floridian waiter agreed to have two $25 Papa John’s pizzas delivered for 10,000 bitcoins on May 22, 2010. That transaction effectively set the inaugural real-world price or value of bitcoin at 4 bitcoins per penny. Jeremy Sturdivant was only 19 years old when he made a deal that could have earned him billions today. Instead, he spent all the crypto-cash to cover expenditures on a business trip, unknowing of how huge Bitcoin would become—and the day went recorded in cryptocurrency history.
With the advent of Bitcoin, which was established by an unknown programmer or group of programmers under the name Satoshi Nakamoto in 2008, cryptocurrencies began to acquire prominence. Today there are over 5,000 cryptocurrencies circulating in the market; however, it’s practically impossible to discuss the history of every cryptocurrency that exists; however, Bitcoin is still the number one coin of all time.
What is Crypto Trading?
Currency trading refers to speculating on the price direction of particular cryptocurrencies, either against one another or pairings (crypto/dollar) or against one or more other cryptocurrencies crypto to crypto). However, cryptocurrency CFDs (contracts for difference) are becoming more popular as a method of trading because they provide: greater flexibility, the opportunity to employ leverage, and finally, the option to take both short and long bets.
Long Term vs. Short Term Trading
Long-term traders buy or HODL (Holding on for Dear Life) cryptocurrencies for an extended time, such as weeks, months, or even years, to sell at a profit or use them in the future. In contrast, short-term traders take advantage of short-term price movements in the cryptocurrency market by developing and executing a trading strategy instead of long-term holding it.
Getting Started with Cryptocurrency Trading
The crypto market capitalization is currently about $1.9 trillion, with more than 2,000 cryptocurrencies in circulation. It should come as no surprise that more and more individuals across the globe are opting to become involved in this market and begin with crypto trading. However, the trading itself might seem complicated at first but if you follow the steps outlined below, the process will be as smooth as butter. Big claim? Sure it is. Read on to witness it yourself.
Pick a Crypto Exchange of Your Choice
To begin crypto trading, every trader requires a cryptocurrency exchange to create an account and deposit some dollars into it before beginning buying and trading—FTX, Binance, and Coinbase are among some popular exchanges. Remember, these exchanges may have a wide range of terms with vastly different platforms; therefore, it is essential to do extensive research and read multiple exchange reviews before making a decision (here’s why we recommend FTX).
We also have a more extensive look at FTX in this article here.
Fund Your Crypto Account
Immediately after creating your account on the cryptocurrency exchange of your choice, the next step is to fund your account and add cryptocurrency to your digital wallet by using debit cards, credit cards, and wire transfers as payment methods. Additionally, wire transfer is considered as one of the most cost-effective methods of financing an account, provided for free by many cryptocurrency exchanges such as Uphold, Gemini, and FTX.
Develop Your Trading Strategy
Making a smart trading strategy is an important phase in the crypto trading process, and most traders take several different aspects into account. Consequently, by combining trading indicators with the relevant fundamental and technical research, you may generate significant gains in cryptocurrency trading. However, if you are a newbie, enroll in a cryptocurrency trading course and work towards becoming an expert. (More on this later).
Choose Your Cryptocurrency
With a market capitalization of about $1.9 trillion, and more than 2,000 cryptocurrencies in circulation, there are a plethora of cryptocurrencies available on the market. Still, the majority of experienced traders choose either Bitcoin or Ethereum. However, forget the rest and choose a coin based on performance parameters. As a newbie, stay away from trading initial coin offers (ICOs) since you have no way of knowing how successful they will be in the future.
Diversify Your Investment
As the adage goes, don’t put all your eggs in one basket—the same is the case with crypto trading. When it comes to investing in digital assets, there is the prospect of making money, but there is also the risk of losing everything. Therefore, diversifying your holdings among several alternative cryptocurrencies allows you to minimize losses if one cryptocurrency’s value collapses. Note that crypto trading is risky, and it is recommended that you only invest money that you can afford to lose.
Securely Store Your Cryptocurrency
If you’re purchasing cryptocurrencies intending to hold them for the medium to long term, you should consider purchasing a cryptocurrency wallet—available in two forms: software and hardware wallets. Both are safe; however, hardware wallets provide the highest level of security since they keep your cryptocurrency on a physical device, disconnected from the internet. For those seeking a software wallet, there are various free-to-use solutions available for iOS and Android.
Bonus: Learn Crypto Trading with Crypto Cowboys Mastermind
Crypto Cowboys is an online video trading course designed to teach new crypto traders about cryptocurrency investing and trading step-by-step.
From how to get started with cryptocurrency to understanding the essential parts of investing and trading—Crypto Cowboys is the “Buy Low, Sell High” philosophy that instructs participants on how to locate high-quality low-entry cryptocurrencies for much more significant earnings. Moreover, the trainers demonstrate how they doubled, tripled, and even quadrupled their original investments simply by following the tactics outlined in the Case studies section of the Main training.
Here’s why we recommend Crypto Cowboys:
- Get started with $10 or less.
- A whole new way for trading in 2022.
- No previous expertise with cryptocurrency is required.
- Make money fast and easily (sometimes within a few hours)
- Learn how to scale up your profit margins.
- Video training, extras, and three real-life case studies.
Get Crypto Cowboys HERE for this special price.
Crypto Cowboy Fee Structure
The best part of this program is that you can decide just how deeply you want to commit to expanding your crypto knowledge. The main training is a complete crypto course in itself at an amazing price. It is possible to choose the levels you are interested in and get only the ones that you want. At level 5 you are in the Mastermind group where you get all the insider scoops of what’s trending now from proven research.
This program was our first deep dive into the crypto world and have been extremely pleased with the results. We bought the whole course and have gotten more information than courses that have cost thousands of dollars. The Mastermind group has paid for itself many times over.
Here is the breakdown:
Main Training: Crypto Cowboys – $7 to $21
Level 1: 10x Passive Crypto – $17
Level 2: Time Travel Crypto – $27
Level 3: NFT Frenzy – $47
Level 4: Platinum Affiliate – $97
Level 5: Crypto Cowboys Insider Club – $497
Crypto Trading Guide Closing Thoughts
It’s 2022; everyone seems to be going insane about crypto trading. And, after all, why not? Cryptocurrency is the wave of the future. Starting with cryptocurrency might seem wonderful; however, trading it may be tricky. We hope hope our beginners guide to trading cryptocurrency was helpful. Happy trading!