Cryptocurrency trading refers to the buying and selling of digital assets on online marketplaces called cryptocurrency exchanges or exchange apps. These exchanges match buyers and sellers and facilitate the trading of cryptocurrencies such as Bitcoin, Ethereum, Ripple, Tether, Litecoin, and more. Prices can fluctuate greatly in the crypto market, and traders aim to buy low and sell high to make a profit. Trading can be done using real money or by using a demo account with virtual money to practice trading.
There are several types of crypto trading that new traders can explore. Spot trading, margin trading, futures trading, and more are some of the popular types of trading. There is also P2P trading that allows traders to transact over a secure network with the exchanger acting as an escrow service. Before going into the tips you need to start crypto trading, you must first know what is and is not cryptocurrency.
Cryptocurrency VS Digital Currency
A digital currency refers to any exchange item that is only available in digital form and can be used for online transactions. Digital currencies can include both centralized and decentralized currencies. A centralized digital currency is issued and controlled by a central authority, such as a government or a central bank. An example of a centralized digital currency is the digital version of a fiat currency, such as a digital dollar, digital euro, or eNaira.
A cryptocurrency, on the other hand, is a specific type of digital currency that uses encryption techniques to secure and verify transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not issued or controlled by any central authority. They use a decentralized system called blockchain, to record and verify transactions independently. Bitcoin, Ripple, Ethereum, Tron, Litecoin, Cardano, Doge, Solana, Shiba Inu and Stellar are examples of cryptocurrencies.
In summary, all cryptocurrencies are digital currencies, but not all digital currencies are cryptocurrencies. Cryptocurrencies are a specific type of digital currency that use encryption and decentralized systems to secure and verify transactions.
Tips for Beginner Crypto traders
Cryptocurrency trading can be a bit complex and risky for beginners, but with the proper knowledge and tools, it can be a great way to invest and potentially make a profit. Here are some tips for beginners who are interested in trading cryptocurrency:
- Learn the basics: Understand how blockchain technology works and the different types of cryptocurrencies available. Currencies differ vastly in their values and how they are traded on the crypto market. Learn how to perform basic tasks like creating a wallet, sending funds, receiving funds, and converting currencies.
- Choose a reputable exchange: When choosing a cryptocurrency exchange, make sure it is reputable and has a good track record. Some popular exchanges include Binance, Crypto.com, Coinbase, and Kraken. These trading platforms have earned their reputation by providing the best exchange services to crypto traders for many years.
- Keep an eye on market trends: Stay informed about market trends and news that may affect the price of your chosen cryptocurrency. Staying alert and informed on the market changes would help you evade the periodic waves of crypto market speculators.
- Set a budget: Decide on a budget for your trading and only invest what you can afford to lose. If you are not big on risk-taking, you should have a budget that you can afford to try out things with. Do not put all your money in one trade; start with small amounts and gradually increase as you gain more experience.
- Use stop loss orders: A stop loss order is an order you can place with the exchange to automatically sell your position if the price drops to a certain level; this way, you can limit your losses when the market goes south.
- Diversify: Don’t put all your eggs in one basket; diversify your portfolio by investing in different cryptocurrencies.
- Always have a plan: Before making any trade, have a plan in place for when to buy and when to sell, and stick to it. Your ability to develop a working strategy and stick to it will determine if you will be profitable over time.
It is crucial to keep in mind that cryptocurrency prices can be volatile and that past performance does not guarantee future results. It is also vital to understand the legal and regulatory environment for trading in your region before you start trading. In some countries, trading on the crypto market might be illegal. Hence, you should help yourself avoid legal inditement.
How to trade crypto for Naira or Cedes
Are you looking for a fast trading app where you can change crypto for naira immediately? Sell all ETH, BUSD, USDT, USDC, BTC, and more at unbelievable rates. Here is how to go about it:
- Log on to Dartafrica.io
- Create an account, verify your email address, and log in to the account.
- Select the coin you are trading and enter the amount. You get the exchange value in USD and local currency (naira or cedes).
- Click sell coin, and you will receive money in your wallet after two confirmations.
- Proceed to add local bank details to withdraw funds.
It does not get easier than this; start trading BTC now!