Crypto has been a popular topic among people around the world for years. People always talk about it when its value falls or rises. Some people even believe that it is a currency for the future.
In 2023, many countries, companies, and CEOs are embracing crypto as a means of payment and investment. Countries in Latin America and the Caribbean are not left out as they are entirely aware of this blockchain technology’s economic importance.
Cryptocurrency or crypto is a decentralized means of payment and exchange. It is an electronic currency used for trade. Crypto works using a type of technology known as the blockchain.
Blockchain is a decentralized technology that cuts across many computers. These computers manage and record transactions and exchanges made. It is decentralized because it is primarily unregulated by government authorities in countries. However, because of security issues, different countries’ governments have started to regulate crypto activities in their respective countries.
Engaging in crypto trading can look complicated at the beginning. But when you take the time to understand how it works, you realize that it is not so hard. In 2023, there is a lot of crypto news about people getting scammed and losing money worldwide.
However, buying and selling crypto nowadays is more accessible than before. Understanding the crypto market will allow you to potentially earn more and lose less as, in the last year, there have been a series of price fluctuations with people making and losing money.
The following are guidelines on buying and selling Bitcoin and other cryptocurrencies.
- Make a decision on which cryptocurrency you wish to invest in. You cannot possibly trade all the cryptocurrencies. But you should be able to trade all the major currencies like Bitcoin, Ethereum, XRP, and Litecoin. Other crypto examples are Cardano, Polkadot, Chainlink, Stellar, Tether, Monero, Dogecoin, NEM, Cosmo, TRON, Neo, and THETA.
- Decide on an exchange or online trading platform: These platforms are sites and applications that allow you to exchange your local currency for crypto. Exchange platforms in Latin America include Bitso, Ripio, Volabit, Cryptobuyer, Bitex, Crypto Market, and Panda Exchange. Some exchange platforms available in The Caribbean are Coinbase, Kraken, and Binance. You will open an account with the platform of your choice. After creating an account, you can store your cryptocurrency in your blockchain wallet. A blockchain wallet is a digital wallet that allows users to manage their cryptocurrencies. It is essential to use at least two different trading platforms.
- Link your exchange account to a payment option: You can connect your bank account or a credit or debit card. These exchange platforms allow users to make or receive payments through bank transfers and credit cards. Linking your credit card to your wallet might not be an entirely good idea. Also, be sure your bank does not have any restrictions against crypto.
- Choose your trading strategy: you should not trade without fully understanding the market. It would be best if you took the time to study market trends. How high or low cryptocurrency prices go depends on a lot of factors. These factors include blockchain software upgrades, news, supply vs. demand, public hype, and government regulations. The more people deal with crypto, the more these factors influence crypto.
- Practice your trading strategy: this is done by actually placing a trade. You can start small or practice with demo accounts. This makes you get better. It is vital to know when to exit a trade. Crypto is a precarious investment. So to minimize losses, you should discipline yourself when it comes to leaving a trade.
- Transfer your coins/place your orders: Once you know that you have in-depth knowledge about the crypto market, you can choose to buy coins by placing orders.
- Once you have already made the purchases, you can choose to keep them or sell them to people.
Just like every other investment, cryptocurrencies have risks. Cryptocurrencies are said to be one of the most volatile forms of investment. The value of cryptocurrencies can rise and fall at any time due to different factors. Before using any trading platform or buying/selling to anyone, make adequate findings of who you are dealing with. Above all, do not put your money and resources into something you are entirely naïve about.