If you are reading this article, you’re probably taking your first bold step towards building a profitable career in the cryptocurrency market. We at LiveTrade heartily congratulate you on this feat. In this article, we will be providing you with a few tips to keep you from making avoidable, expensive mistakes on this journey. First, An introduction to the basic concepts.
Cryptocurrency is basically digital money. It is in fact a digital asset that serves as a medium of exchange, it employs strong cryptography to secure financial transactions, and control the mining of additional units and verify the transfer of assets. Unlike traditional banking systems and currencies, cryptocurrencies use decentralized control, purportedly making the system fairer to all. Bitcoin was the first such currency created in 2009 with about 25 million users around the globe currently.
Cryptocurrency Investment & Trading
Crypto investment basically involves buying a bunch of coins and reselling when its value (hopefully) increases. A good example would be the lucky investors who bought bitcoins in 2011 at just $0.35/BTC. If they held on to it till late 2017, they could have resold at nearly $20,000 per coin!
On the other hand, Crypto trading is simply trading one digital currency for another, with hopes that your acquired coin increases in value. This became possible only after the introduction of other cryptocurrencies like Etherium, Ripple, Litecoin, etc. Cryptocurrency investment and trading hold enormous profit potential, but one does need to tread carefully.
How to Begin Trading
As a newbie crypto trader, here are 3 simple steps to get you on your path to financial freedom:
1. Acquire a Wallet and some Coins: The smartest coin choice for initial purchase is probably Bitcoin, since it is the most widely accepted coin by most exchangers and merchants. You have to create a Bitcoin/Ethereum wallet first. Next, you will need to furnish your new wallet with coins. An easy and safe way to do this would be to purchase coins with your debit/credit card at LiveTrade or other similar trusted merchants.
2. Join an Online Cryptocurrency Exchange Platform: A cryptocurrency exchange is a business that enables its users to trade cryptocurrencies for other assets (e.g. conventional fiat money) or other digital currencies. It is simply a marketplace where crypto trading can be done. Examples of such platforms include LiveTrade, Coinbase, Binance, Luno, etc. LiveTrade provides peculiar benefits to its customers, including the use of Artificial Intelligence to analyze market sentiment, price fluctuation patterns, coin performance analyses and charts, Initial Exchange Offerings, ability to convert coins into stock or other assets, ability to make payments with your coins etc.
3. Do Your Research: The bulk of a crypto-trader’s work lies in doing his/her due diligence. Take time to study coin trends; use the Trend Analysis tools and predictors made available by your crypto exchange. Follow the official social media accounts of the coins you are dealing with, and those of the major players in the industry. Basically, put your ears to the ground and watch out for the subtle signs.
It’s not whether you’re right or wrong that’s important, it’s how much money you make when you’re right and how much money you lose when you’re wrong.
– George Soro
Finally, do not invest more than you can comfortably lose to the market. Many have called the crypto market the most volatile and risky business there is, and rightly so. Be wise!
Do have a rewarding career in cryptocurrency investment and trading!