Crypto currency trading

Buying crypto currencies via an exchange

        Alternatively, you might decide to buy a crypto currency, which means that you take ownership of a portion of the digital currency outright, with the intention of holding it in a digital wallet and profiting if it increases in value.

        Before you can start, you would need to open a crypto currency wallet, and an account with a crypto currency exchange. There can be a lot of steps to this process, and you might have to join a waiting list for an account.

Learn how the crypto currency market works

        The crypto currency market operates in a different way from other financial markets, which makes it vital to learn how it works, and understand the jargon used to describe it, before you start trading.

        The crypto currency market is a decentralized digital currency network, which means that it operates through a system of peer-to-peer transaction checks, rather than a central server. When crypto currencies are bought and sold, the transactions are added to the blockchain – a shared digital ledger which records data – through a process called ‘mining’.

        Crypto currencies are also famously volatile, which makes it important to know what is likely to move the market – this could be anything from ICOs and blockchain forks, to breaking news and government regulation.

Build a trading plan

        Having a trading plan is crucial to success for any trader but even more so for crypto currency traders because the market can see high amounts of volatility. This is a double-edged sword: volatility makes the market extremely attractive, but difficult to trade. This is why your trading plan should include risk management tools, as well as an outline of your goals, which crypto currency you want to trade, and a methodology for entering and exiting trades – known as a trading strategy.

        Your plan should also include the way you will analyze the crypto currency market: either through technical or fundamental analysis. Technical analysis focuses on the price movement of a crypto currency and its historical patterns, while fundamental analysis looks at the external factors and macroeconomic data that impact the digital asset. Whichever method you choose, it is important to remain up to date with any news that could impact the market, as crypto currencies are especially sensitive to market sentiment.

Choose your crypto currency trading platform

Binance	Register
Huobi	Register
Okex	Register
Coinbase	Register
Gate.io	Register
MEXC	Register