Unlike printed fiat currencies, you can only mine or trade cryptocurrencies because they only exist on the digital platform. Crypto mining requires high-powered computers and a lot of detailed work to earn a coin. That is what makes crypto mining a non-viable option for many people. In contrast, crypto trading is relatively straightforward, but you must take your time to research and understand the basics.

The fact that cryptocurrencies are highly volatile is what makes trading a profitable venture. If you can predict the market correctly, you can make significant profits. However, you also face the risk of making losses as well. Another advantage of crypto trading is that you can do it all day and night, unlike the stocks markets that are limited to business working hours.

Getting started on crypto trading

Since cryptos are decentralized, it is a straightforward market to venture into without having to go through lengthy verification processes. To get started on trading cryptos, you need a good internet connection. Then open an account with a crypto exchange, a digital marketplace for buying and selling cryptos. You will encounter two types of crypto exchanges:

• Fiat to currency where you can exchange crypto with fiat currencies such as USD.
• Crypto to crypto for exchanging one cryptocurrency and another one.

Most crypto exchanges require you to register and go through the verification process to ascertain your identity then your account is open. From there, you can transfer funds to start trading cryptos. There is no global price for a specific cryptocurrency, so the price depends on the exchange.

Things to evaluate in a crypto exchange platform

Here are the things to evaluate before choosing a crypto exchange platform.

• Security of the exchange- in the past, we have seen many crypto exchanges fall victim to security breaches, so you need to choose one that is not susceptible to hackers. Check its privacy policy and look for safety features such as data encryption and two-factor authentification options.
• Usability- ensure that you can easily navigate the platform without any problems. A user-friendly platform makes it easy for you to trade cryptos.
• Transaction charges- while some crypto exchanges charge a specific fee for transactions, others provide them for free.
• Check reviews- the best way to find out if other users have had a positive experience on the platform is to examine the reviews. Reviews can also inform you about everything you need to know about the exchange.

Choose a secure bitcoin wallet.

You need a secure crypto wallet to store and access your cryptos. It comes with a private key that you use to unlock your cryptos and transact with them and a public address for receiving cryptos. There are different crypto wallets, and you must choose one that is secure because you are wholly responsible for your cryptos.

Hot wallets are software-based, and you access them through the internet, while cold wallets are hardware devices used to store your cryptos; therefore, they are offline-based and more secure.

parting shot

Research the market more before you start trading cryptos.