TIP: A good first foray into cryptocurrency investing is the obvious, buying a major cryptocurrency like Bitcoin. After that, you’ll probably want to trade USD for crypto on an exchange like Coinbase Pro. Once you have done that, you could try trading BTC and ETH for other cryptocurrencies. Trading “crypto pairs” can be rewarding, but it is more complex and often more risky than just buying a single cryptocurrency as an investment. In other words, start by trading dollars for major coins like BTC and ETH on an exchange like Coinbase, and then when you are ready try trading BTC and ETH for other coins on an exchange like Binance or Coinbase Pro.
Cryptocurrency Trading: How to Start?
BitDegree.org Fact-checking Standards
To ensure the highest level of accuracy & most up-to-date information, BitDegree.org is regularly audited & fact-checked by following strict editorial guidelines. Clear linking rules are abided to meet reference reputability standards.
So, you’ve finally decided to start your cryptocurrency trading career, and you’re already thinking about how you’re going to spend your millions. There’s no doubt that cryptocurrency is an exciting market for investors, but unfortunately, success doesn’t happen as easy as that.
First, I am going to give you some background information on when cryptocurrency trading began. Next, I will help you understand the difference between short-term and long-term cryptocurrency trading, and both of their advantages and disadvantages.
Want to get smarter & wealthier with crypto?
Table of Contents
Cash App, PayPal, and Other Solutions For Trading Cryptocurrency
Some traders are going to be familiar with more technical types of trading and/or won’t be US-based. These traders may want to try using leverage, for example on Coinbase Pro or Kraken, or may even consider crypto “derivatives” like futures and options offered by platforms like Bakkt, CME, FTX, or BitMEX. Leverage and derivatives aren’t beginner-friendly, but for seasoned traders new to crypto, they can make sense.
Our Suggestion on where to trade crypto for a newcomer: Use Cash App if you want to keep things simple and just buy Bitcoin, use PayPal or Robinhood if you want a wider but limited selection, use Coinbase if you are ready for real cryptocurrency investing and trading, and lastly once you have mastered Coinbase move onto Coinbase Pro, Binance, and Bittrex to get a wider selection of crypto assets. From there maybe you’ll want to check out Uniswap and dive fully into the world of crypto, but for now the aforementioned is enough to start. Later down the road, if feel like you have mastered trading and risk management strategies, then you may want to consider leverage and derivatives trading, but there is no reason to start there. Trying to do this out of order can lead to real issues, so we strongly suggest learning to walk before you run here. Lastly, at any point in this process, we suggest getting a hardware wallet like Trezor and storing your long-term holdings in your own wallet. Also, once you learn the ropes, educating yourself on other aspects of crypto like mining and how blockchain and smart contracts work is a good idea too!
How to Start Crypto & Bitcoin Trading
Step 1: Open an Account and Upload ID
Step 2: Upload ID
Step 3: Deposit Funds
Step 4: Search for a Crypto Trading Market
Step 5: Place a Trade
This is super easy on eToro, as you simply need to enter your stake. As you can see from the image below, we are buying $25 worth of Bitcoin commission-free. This is the minimum on eToro when trading crypto.
eToro – Best Crypto Trading Platform with 0% Commission
What is a crypto exchange?
A crypto trading platform operates in the same way as a conventional stock, forex, or CFD platform. That is to say, crypto trading platforms allow you to buy, sell, and trade digital currencies from the comfort of your home.
Which crypto trading platforms offer the most leverage?
This depends on whether or not you are planning to use a regulated crypto trading platform (which you should). If you do, your access to leverage will depend on your country of residence. But, if using an unlicensed provider -such as BitMEX, it’s now possible to get leverage of up 1:100.
What is the cheapest crypto exchange and Bitcoin Trading platform?
Binance is often viewed as a low-cost trading platform, as it charges just 0.10% in commission. However, you’ll pay up to 4.5% to deposit funds with a debit card. A much cheaper option is to use a regulated platform like eToro, which charges no commission on its crypto markets. Plus, debit card deposits will cost you a maximum of 0.5%.
What is the best crypto exchange for US residents?
As an American, you should stick with crypto trading platforms that are registered with FINRA. eToro is one such example. The provider is not only commission-free, but you can buy crypto from just $25 upwards.
How do I start crypto trading?
You can start crypto trading in less than 10-15 minutes when using a regulated platform like eToro. All you need to do is quickly open an account, upload your ID, and make an instant deposit with your debit/credit card or e-wallet. Then, you can start trading crypto straightaway!
Are crypto trading platforms regulated?
There are hundreds of crypto trading platforms in the online space – most of which are unregulated. We strongly suggest sticking with a regulated platform like eToro – which is licensed by the FCA, CYSEC, and ASIC (and registered with FIRNA in the US).
What is the best crypto to trade online?
Which Bitcoin Trading platform is safest?
If you want to trade Bitcoin in a truly safe and secure manner, it’s best to use regulated platforms. eToro, for example, is regulated by the CySEC, FCA, and ASIC, and it is also registered with FINRA in the US. In our view, this makes eToro one of the safest Bitcoin trading platforms in the space.
Which Bitcoin trading platforms offer futures?
If you’re interested in Bitcoin derivatives like futures and options, Binance might be your best bet. The popular exchange offers an abundance of markets on these Bitcoin derivative products, which all allow you to trade with leverage.
How do Bitcoin trading platforms make money?
What is the best Bitcoin pair to trade online?
Without a doubt, the most traded Bitcoin pair in the cryptocurrency scene is BTC/USD. This means that you will be trading the price of Bitcoin against the US dollar. If your chosen Bitcoin doesn’t support crypto-to-fiat pairs, then you can trade BTC/USDT instead.
Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.
DeFi Coin ecosystem also follows a manual token burning strategy where tokens are bought back by the protocol after consultation with the community. This helps reduce the circulating supply and increase the value of the token without hindering liquidity.
The 5 Best Cryptocurrency Trading Platforms 2022!
Virtually every commodity with value is traded in some way, shape, or form. After all, we have been investing in natural elements and human-made assets since the beginning of time. So when cryptocurrencies like Bitcoin took the world by storm, it was only natural that the investment world would want a piece. That’s why cryptocurrency trading become so popular.
Although digital coins are now popular with both retail and institutional investors, there has also been wide skepticism regarding the legitimacy of cryptocurrencies as an asset class. That skepticism should no longer be in place – especially when you consider some of the major players now involved in the space.
Nevertheless, if you do want to gain exposure to the cryptocurrency investment space, you need a trading platform that can execute your orders as well as offer reliable resources about the cryptocurrency market.
5 Best Crypto Exchanges in 2022
Crypto is mainstream today. Most investors have at least a few cryptocurrencies in their portfolios. Crypto exchanges help meet the rising demand for these digital assets. Over the years, they have grown to accommodate new features, services, and products. If centralized exchanges dominated the market in the early phases, decentralized exchanges play a significant role in maintaining liquidity today. While some exchanges offer competitive fees and sophisticated tools, others excel in speed and performance.
Whether you are a new user just getting acquainted with the crypto industry or an experienced trader looking for advanced services and tools, we will help you find the best crypto exchange that suits your requirements. In this article, we take a detailed look at the five top crypto exchanges listed above. We go through their fee structure, payment methods, security systems, and allied services among other key features.
AQRU: The best crypto exchange with low fees
AQRU tops our list of the best crypto exchanges this year. The platform is known for its low fee structure, which allows you to trade cryptocurrencies for (almost) free. AQRU not only makes crypto investments more affordable, but also gives more flexibility to traders. Since the transaction fees are cheap, you can get in and out of your positions with relative ease. As a result, AQRU has emerged to become a favorite among both experienced and new investors. Apart from an exchange, AQRU also serves as a crypto yield platform.
Cheap, transparent pricing
It is interesting to note that AQRU charges no fees on buying cryptocurrencies like BTC, ETH and USDC, when investing into one of their interest accounts. All deposits into AQRU are free of cost too, with the exception of a small fee for credit card transfers. You can add funds to your account on the platform through a variety of payment methods including crypto transfer, bank transfer, and credit card. There is no extra charge for keeping balances that exceed a predefined amount when you’re staking your assets. This will save you a lot of money if you’re a large-volume trader.
Crypto withdrawals on AQRU amount to a flat fee of USD 10 for Bitcoin, and USD 20 for other cryptocurrencies. But if that sounds like a lot, you can opt for fiat withdrawals instead. They are completely free of cost.
Institutional exchange rates
AQRU features institutional exchange rates, making crypto trading more lucrative for retail investors and traders. It gives you fine rates, with no padding. That is, cryptocurrencies are offered to you at the same rate AQRU procures them from its providers.
No clutter or distractions
One of the key features that have contributed to AQRU’s mass appeal and high retention rate is its focus on user experience. Both the website and the mobile application are straightforward, clean, clear, and responsive. Getting started on the platform is fast and simple. The theme is easy on the eye and functional, letting you find each service and tool without going through any hassle.
Earn with crypto
As discussed above, AQRU offers one of the best yield services in the industry. It lets you earn passive income on your crypto assets like BTC, ETH and USDC. Currently, it offers up to 7% interest. In the highly volatile crypto market, the notion of locking your assets can sound dreadful. You can’t be blamed, as the commitment can sometimes lead to massive losses. AQRU offers an excellent solution with its flexible lock-in terms. The majority of interest accounts on AQRU don’t have a definite lock-in period. You can withdraw the assets at any time you want to, with just 24 hours’ notice.
Robust yield generation strategies
AQRU follows sustainable yield generation strategies to give consistent returns to investors. The team analyzes the market and distributes the pooled assets to institutional and retail borrowers as well as DEXs. The profits made from these methods are then circulated back to investors in proportion to their deposits. Moreover, the yield generation strategies have to go through a stringent risk management process before going live.
Advanced security measures
AQRU features some advanced security measures to protect funds deposited on the platforms. For example, it has integrated the latest Multi-Sig technology from Fireblocks for wallet protection. It also has an insurance plan in place to protect the funds sent to decentralized exchanges against hacking. It is an authorized Virtual Assets Service Provider that follows financial responsibility standards.
Bitcoin trading strategy
Most people begin their trading path with BTC because it’s the most traded and valuable cryptocurrency. That’s why you have to be fluent with crypto trading methodology. While choosing a Bitcoin trading strategy, you should rely on your own experience and style.
If you’re very emotional and tend to make mistakes, you have to use an algorithmic strategy. That means using formulas to identify points at which you need to place different orders. Today, these strategies are associated with using trading robots, but you have to configure them the right way to be successful.
If you’re disciplined and can easily manage risks, you could try margin trading. This allows you to deposit less, but gain the same profit. However, you have to place every order very carefully, or you might end up in debt.
Trading strategy for Bitcoin 2020
Your trading strategy for Bitcoin will be the same as those used for alternative cryptocurrencies, like swing, day trading, scalping and others. Most of your tactics will be similar, but you’ll have more opportunities because Bitcoin is the most popular digital currency.
In this case, you’ll open a short position on BTC, which involves selling the asset for the actual market value while under the pretence that it might decline. If it really falls, you would buy it back for a lower cost and margin the difference. This means that any loss to your first BTC position would be countered by the income from the short position.
Bitcoin day trading strategy
How to become a successful cryptocurrency trader
One more important step is to build a trading plan. This should include your goals for each period of trading, style (how often you plan to trade) and attitude toward risk. Check out other cryptocurrency traders’ Twitter accounts. Very often, they give some useful information. But only use it them only for your analytics, not for making trades.
Avoid all pump and dump groups. Many newbies in this market think that they can profit by connecting with such groups. In fact, they are strategies based on inaccurate statements and analytics. That means you’ll have a bigger chance of losing all of your money.
Choose a trusted crypto exchange
One of the most important rules every trader has is to use only trusted exchanges. This will provide fast deals, high security and easy withdrawals. Moreover, your personal data will not be used for someone else’s purposes. How do you choose an exchange?
Use a reliable platform for cryptocurrency trading
Nowadays, you can find many exchanges with different conditions. However, as previously mentioned, you should choose a trust crypto exchange. Here is a list of some popular platforms that provide good client service:
Coinbase’s 100-odd tradable cryptocurrencies should satisfy most looking to break into the crypto space, like those hoping to hitch their wagons to Bitcoin and Ether, but sadly, you’ll have to go elsewhere to invest in the highly memeable Dogecoin. (Not necessarily a bad thing for your long-term wealth.)
What Is Cryptocurrency Trading & How Does It Work? All You Need To Know
In today’s fast-moving and tech-driven world, it’s no surprise that cryptocurrency trading attracts more and more traders from all over the globe. At the same time, the world of cryptocurrency is still surrounded by myths and misconceptions. So, what is cryptocurrency trading and how does it actually work?
Cryptocurrency trading involves the buying and selling of different virtual coins and exchanging one for another. Crypto trading also allows traders to use fiat currencies to buy cryptos in order to get started. Note that unlike stock or forex trading, the cryptocurrencies market is open 24/7 – a fact that makes cryptocurrency trading highly attractive.
Cryptocurrency | Definition
Cryptos are also referred to as virtual money, coins, tokens, and so on and on. While terms vary, cyber currencies are all encrypted, which gives them high levels of security. It is worth noting that the term “crypto” comes from cryptography.
The Basics of Blockchain Technology
Another term we have to clarify before explaining what crypto trading is and how it works is blockchain technology. Blockchain technology is a big deal ! Blockchain technology has the potential to revolutionise the way we store data and create smart contracts and applications far beyond the financial industry.
When it comes to cryptocurrency, blockchain technology is used to record transactions and track data and ownership . New blocks are added at the front of the blockchain ledger to ensure transparency, which is exactly the process of crypto mining . Here we should mention that mining can be extremely time and energy-consuming.
The History of Cryptocurrency and Blockchain Technology
Before you start exploring the world of cryptocurrency trading, you should also understand its history. Just like their cryptic nature, the history of cryptos is more than enigmatic. The first cryptocurrency to be traded, bitcoin, was created in 2009. Bitcoin was created by Satoshi Nakamoto whose real identity was never revealed.
Bitcoin led to the creation of thousands of altcoins , including utility tokens (Binance Coin), stablecoins (Tether), and privacy coins (Monero). According to data, as of 2020, there are approximately 5,201 cryptos, and these numbers are increasing.
Cryptocurrency Trading: Ways to Trade Cryptocurrency
Once you’ve got a grasp of the basics of cryptocurrency, let’s see what crypto trading is and how it works. Cryptocurrency trading, as stated above, involves the buying and selling of different virtual coins and exchanging one for another.
There are two main ways to trade cryptos. One is to buy and sell cryptocurrencies via an exchange and the other is to trade a Contract for Difference (CFD) and speculate on price movements.
Cryptocurrency Trading via an Exchange
Cryptocurrency trading via exchanges involves the buying and selling of cryptocurrencies. Here we should note that when you purchase cryptos via an exchange, you own the assets you buy . To do that safely, you have to open an account and store your assets in a crypto wallet until you decide to trade.
Cryptocurrency Trading and CFDs
When you trade cryptos via a CFD account, you can speculate on price movements. In this case, you’ll be trading derivative contracts, so you never own the cryptocurrencies you are trading. Note that CFDs are defined as leverage instruments, which can increase both wins and losses.
earn like a pro by Crypto trading in 2022
Cryptocurrency trading or crypto trading can be highly profitable if you play your cards well. In this guide, we will discuss all the necessary facts associated with crypto trading. And what all the resources, tools, strategies, and tips are required for beginners to get into the world of trading cryptocurrency and ultimately earn like a pro-crypto trader.
Bitcoin and altcoins are global currencies. Any central government does not control it. So it doesn’t depend on any given country’s economy or policies. Bitcoin currency is not a fiat currency.
When the central bank prints lots of money, inflation goes up which makes the currency value go down. Since there is a finite number of Bitcoins ( 21 million of them) and the same hold true for other Cryptocurrencies.
2. Crypto Trading Is Available Round The Clock 24/7 –
Cryptocurrencies can be traded non-stop 24 hours 7 days a week. Unlike forex, stock, and commodities which only operate during business hours and are closed on weekends. Cryptocurrency trading remains active round the clock.
3. Cryptocurrency Is Volatile –
Cryptocurrency deposits and withdrawals are also quick, and documentation is not as hectic as in traditional forex trades. You just need to have any cryptocurrency in your trading account wallet, and you can start trading.
4. Leverage At Crypto Trading Platforms
Likewise, on other crypto trading platforms like e-toro or Whaleclub, every $10 let you trade crypto worth $250. While forex trading platforms generally do not offer such leverages.
When it comes to investing the money everybody wants the secure, user-friendly, and renowned altcoin trading platforms Just as the number of altcoins is increasing in the market so are the trading platforms.
Prerequisites for choosing a specialized crypto trading platform
1. Regulation & Security –
2. Fees –
Fess generally expresses a percentage of the transaction amount and an average cap of around 0.30%. Most cryptocurrency exchanges offer a volume-based fee structure means if you buy or sell a large volume of altcoins you have to pay smaller fees.
3. The number of altcoins –
4. Trading volume –
5. Reputation and Longevity
Ways Of Crypto Trading
Long-Term Crypto Trading –
The first is long-term crypto trading which is known as ‘buy and hold.’ In this method, crypto traders study the price trends of an asset over an extended period and hope that the asset price will increase in the future.
This approach is based on an assumption. Long-term crypto trade is proving profitable as you can see the boost in the Bitcoin price recently (overall annual growth of Bitcoin is about 4000% in the year 2017) and so does the price of popular cryptocurrencies like Ripple coin, Ethereum coin, Litecoin crypto, and more.
Short Term Crypto Trading –
There are three to four approaches for short-term crypto trading.
Day trading –
Swing trading –
Traders make a profit on the daily swing of the price of BTC whether upward or downward. Swing trading can prove to be very profitable in a short span of time if a crypto trader learns to read the technical indicators.
Here cryptocurrency traders attempt to profit from minute-to-minute moves, often capitalizing on imbalances in order-book to make a heap of minor gains. Traders tend to read charts of 5 minutes or less to make a profit using scalping.
Guide to Cryptocurrency trading – 15 Essential Crypto Trading tips for beginners
1. Trade crypto With A Clear Strategy
2. Stay Up To Date With Trending Cryptocurrency News
Buy the rumor, sell the news. If you want to make a consistent profit from cryptocurrency trading then it is very important to follow the recent Crypto-market news. Sometimes it allows crypto traders to predict the ups and downs of the Cryptocurrency market.
3. Guide To Trading Cryptocurrency — Fundamental Analytics Of Crypto Trading Asset
4. Crypto Technical Analysis
On top of their charting service, Coinigy uses custom data feeds to closely integrate with over 45 cryptocurrency exchanges. You can also set up SMS text alerts on custom events as well as execute trade orders across supported cryptocurrency exchanges and much more.
Can You Truly Claim Ownership of Anything in the Metaverse?
What is Metaverse? An investment business paid USD 4 million for 2,000 acres of land in 2021. Normally, this would not make the news, but the land was virtual in this case. It only existed in The Sandbox, a metaverse platform. The company acquired the equivalent of 1,200 city blocks by purchasing 792 non-fungible tokens…
CFD trading for beginners – What is crypto CFD trading? & best CFD Brokers.
CFD trading for beginners If you are a beginner or even a pro-crypto trader and wanted to exploit the world of (Contract for difference) CFD trading or precisely Crypto CFD trading? Then read the ‘ CFD trading guide for beginners and what is Crypto CFD trading ‘? Also, get an idea about the best crypto…
1.8 million Binance tokens (BNB) are burned by Binance.
Binance tokens (BNB) The Binance Smart Chain (BSC) blockchain is powered by the Binance exchange Token (BNB). BNB coins are also required to take part in BSC’s on-chain governance. Binance launched a new BNB auto-burn method last year in response to community criticism in order to create a healthy BSC ecosystem. Binance had two BNB…
Binance coin price prediction – Why BNB coin going up?
BNB price prediction Binance Coin is one the most popular Exchange token among different cryptocurrencies available today. The Binance Coin (BNB) cryptocurrency is showing an aggressive rally in the middle of this week, having risen in price by almost 40% over the past 24 hours and almost 100% in the last 7 days. The native…
Are NFTs Changing The Marketing World in 2022?
Non Fungible Tokens Today we are seeing a marketing trend in its infancy which is expected to become a revolution in the years to come. Brands have already started optimizing the marketing benefits of this trend, and soon others are yet to catch on. The buzzword is ‘NFTs’, which is a craze not only for…
Bitcoin currency is explained in simple words – a blockchain revolution
Bitcoin Currency Explained In Simple Words Bitcoin currency is a peer-to-peer system for online payments that do not require a trusted central authority or you can say Bitcoin is divorced from governments and central banks. If I simplify Bitcoin currency it is more than Bitcoin it is a digital and global (money system) currency. It allows people…
Next Up in Crytocurrency
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Taylor is an award-winning journalist who has covered a range of personal finance topics in the New York Times, Newsweek, Fortune, Money magazine, Bloomberg, and NPR. He lives in Dripping Springs, TX with his wife and kids and welcomes bbq tips.