How to buy and sell crypto in 2021
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. Countries, companies and CEOs are embracing crypto as a means of payment and even 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 work using a type of technology known as 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 mostly unregulated by government authorities in countries. However, because of security issues, the government in different countries has 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. There is a lot of crypto news about people getting scammed and losing money worldwide. However, it is easier to buy and sell cryptocurrency these days compared to the past. In the last year, there have been a series of price fluctuations with people making and losing money. Thoroughly understanding the crypto market will create one earn more and lose less.
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, Litecoin, bitcoin case. Some other crypto examples are Cardano, Polkadot, Chainlink, Stellar, Tether, Monero, Dogecoin, NEM, Cosmo, TRON, Neo, 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, Panda Exchange. Some exchange platforms available in The Caribbean are Coinbase, Kraken, Bittrex, Binance, Paxful, LocalBitcoins, Wirex, Poloniex, Bitsquare. You will open an account with the platform of your choice. After creating an account, you will be able to 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. Most of 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 very sure that 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 cryptocurrencies prices depend 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 practise 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 on when to leave 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 you use any trading platform, or buy/sell 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.