It seems like the entire world is going crazy over cryptocurrencies, and for many good reasons. Bitcoin, Ethereum, and other alternative coins generate a lot of interest from seasoned and would-be investors. But before jumping on the random trading platform or exchange, it is crucial to understand how to trade cryptocurrency. Want to jump straight to the answer? Experts from PointPay will guide you.
First of all, let's try to find out why so many traders and investors like to trade crypto. The answer is simple: because it's an extremely volatile asset. Trading cryptocurrencies might give you much higher returns than other traditional investments. Traders and investors usually have different goals: some just accumulate Bitcoin, while others prefer to make a profit in fiat currencies such as USD or stablecoins. Why? Because when a crypto market is bullish, it can be pretty challenging for BTC value to increase. If traders want to track their portfolio's Bitcoin value, they prefer to trade altcoins like Ethereum, Litecoin, or XRP against Bitcoin on trustworthy exchanges like PointPay.
There are many different crypto trading approaches out there. To start your cryptocurrency trading journey, you must understand the risks and have a knowledge of the subject. So let's find out how to trade cryptos:
PointPay experts: crypto trading for novice traders
Find a crypto exchange you can trust
You will need to sign up for a cryptocurrency exchange to start trading. One of the best crypto trading platforms on the market is PointPay. Launched in 2018, it is considered one of the most promising crypto-related startups out there. It disrupts the traditional bank model by enabling low-cost and instant fund transfers worldwide using its native off-chain technology and PointPay token (PXP). In addition, PointPay has a straightforward and user-friendly interface and a wide range of cryptocurrencies to choose from.
To open your account, you will need to supply your data, including your name or a nickname, email address, and other information if required.
Fund your account and choose a cryptocurrency to invest in
You will have to connect your bank account once you've signed up with a cryptocurrency exchange. Most trading platforms like PointPay accept bank deposits via debit cards and wire transfers.
After that, you will need to pick a token. Many traders and investors put their money into Bitcoin (BTC) or Ethereum (ETH). However, there are a lot of different altcoins to choose from. Although they are riskier than large market cap cryptocurrencies, altcoins with a small average market cap may have more significant upside potential.
Start crypto trading
If you don't know where to start, you can try automated cryptocurrency trading with some special software. Trading bots implement a process that provides the highest possible returns depending on your investment goals.
You can make money quickly, keep your tokens, or diversify your portfolio with automatic cryptocurrency trading, providing you with a conservative, neutral, or even aggressive way. You can even actively trade cryptocurrency on some sites while automating trading on others.
Choose a crypto trading strategy
There are several strategies out there:
- Day trading — a fast-paced form of crypto trading where investors buy and sell cryptos within a day and take advantage of short-term price movements.
- Hedging — when one of the investments compensates for some or all of the risk of loss of the other. It is a strategy used by some traders who want to hold tokens but not be overly exposed to volatile movements.
- HODLing — keep holding cryptocurrency against all the odds. The word HODL sounds like a typo, and, actually, it originally was. However, now this term stands for Holding On for Dear Life.
- Trend trading — where traders and investors decide to buy and sell Bitcoin, Ethereum, and other tokens based on whether the price is moving up or down.
Keep in mind that trading cryptocurrencies might be very risky, so risk management is a significant aspect. If you are a novice trader, you need to know how much you're ready to lose if everything goes against you. What is more, trading strategies can differ from one trader to another. Everything is based on preferences, personalities, capital, and other factors. PointPay experts believe that evaluating your personal situation is imperative. Do your homework first; it should significantly minimize the mistakes and risks and also enhance your profits.
Trade cryptocurrency on PointPay right away!
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