Crypto trading is one of the best investments in the 21st century. You enjoy low transaction fees, high profits, security, transparency, etc. The list of benefits is endless.
Nowadays, we have a plethora of cryptocurrencies to choose from, for example, Bitcoin (BTC), Ethereum (ETH), Monero (XMR), Solana (SOL), etc. All these crypto are amazing; however, you have to consider the risk each possesses.
Investing in Cryptocurrencies
Investing in crypto is simply crypto trading. For those who are wondering what Crypto trading is? It is the buying and selling of cryptocurrencies via an exchange platform. Also, it can be the act of speculating crypto price movements using a contract for difference (CFD) trading account.
Buying and Selling of Crypto
As an investor, you need a crypto exchange platform to participate in crypto buying and selling. Varieties of Crypto platforms include; Coinbase, Binance, Gate.io, Bithumb, Voyager, eToro, and others.
Let's look at how you can open an account on Binance, one of the best platforms.
Step 1: Head Over to the Official Binance Website or App
Once you are there, Click 'Register.'
Step 2: Identity Verification
Fill in your personal information: your mobile number, email, upload identity card, upload selfie, etc. Also, choose a secure password.
Step 3: Email Verification
You will receive a verification code in your email. Tap on it to verify it’s you, and viola, you have secured a Binance account. The next thing is to begin trading.
Step 4: Enhance Security
You can set up two-factor authentication (2FA) for added security.
Once you have set up an account, the other important thing to do is set up a crypto wallet. A crypto wallet is an app, software program, or device used to store digital assets. Having a crypto wallet enhances the safety of your private and public keys.
How to Set up a Crypto Wallet
Listed for you is a simple guideline on setting up a crypto wallet on MetaMask, a great external wallet.
Step 1: Go to the Official MetaMask Website or App
MetaMask can be supported by both Android and iOS. Also, it is compatible with quite a large number of browsers.
Step 2: Installation
Once at the website, click the 'Install' button, then the ‘Create Wallet’ option. You will be required to create a password.
Step 3: Secret or Backup Recovery Phrase
MetaMask will send you a backup phrase, usually 12 random words. Store it safely as you will require it when recovering your account. Confirm the secret phrase and get started with MetaMask.
Contract for Difference (CFD) Trading Accounts
Trading via CFDs involves speculating Crypto prices. As an investor, you can sell long or short; long selling is where you believe the prices of crypto will rise. So you hold on to the crypto until it reaches a certain price, then you sell. As for short selling, you believe the crypto prices will fall.
Cryptocurrencies tend to be very risky due to market volatility and other factors. Investors trading in crypto should conduct thorough research before making any investment decision.