How to Quickly and Easily Try Out Cryptocurrency Trading

Last Updated: 

March 20, 2024

Taking your baby steps with crypto trading can be scary. It’s a complex market with a lot of risks and uncertainty involved, so the smart move is to do lots of research before getting started.

We’ve put together an overview of what you can do to start trading crypto assets, so that it’s less of a mountain to climb.

Key Takeaways on Trying Out Cryptocurrency Trading:

  • Cryptocurrency Explained: Cryptocurrency, with Bitcoin being the most well-known, operates on blockchain technology, offering a decentralised currency system away from central institutions like governments and banks.
  • Why Trade Crypto Assets? Trading in cryptocurrencies can be secure, globally accessible, and potentially yield significant returns due to market volatility. It's also a consideration for businesses in terms of accepting crypto payments to boost sales.
  • Getting Started with Crypto Trading: To begin trading in cryptocurrencies, it's essential to use a reputable and regulated trading app, choose well-known and less volatile assets like Bitcoin and Ethereum, and understand the market's history and volatility.
  • Tips for First-Time Crypto Traders: Start with small investments, stay informed about crypto news, engage with online crypto communities, have an exit strategy, and diversify your investment portfolio to not rely solely on crypto.

The article emphasises the importance of research, cautious investment, and community engagement for those new to cryptocurrency trading, highlighting the potential risks and rewards of entering the crypto market.

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Cryptocurrency explained

The best-known crypto asset is of course Bitcoin, and it’s only been around since 2009. It’s based on tech known as the blockchain, which is essentially a way of recording data across a distributed, decentralised network of computers.

The ethos of crypto is that it takes control of currency away from central institutions, whether that’s governments, banks or regulators, and puts it in the hands of holders. There are hundreds of different assets in this class today, giving you lots of investment and trading options.

Why trade crypto assets?

Some of the perks of buying and selling crypto should be obvious already; it’s secure, accessible to anyone worldwide, and provides the potential for significant returns due to the volatile nature of the market.

It’s also something to consider if you’re starting a business. Even if you choose not to trade crypto assets, you might consider accepting them as payment from customers in order to catalyse sales growth.

Getting started with crypto trading

For those looking to start, finding the best crypto exchange in Canada is a crucial first step towards engaging with the market confidently. There are a few things you need to do to kick off your first foray into crypto trading, including:

Using a reputable app to trade crypto

Finding a respected and properly regulated app to invest in crypto is a must. There are so many different exchanges out there that support trading, but not all are as reliable as the marketing hype would suggest.

Choosing your assets wisely

Further down the line you might want to experiment with altcoins, but those new to crypto trading should stick to well-known and less volatile assets, such as Bitcoin and Ethereum.

Looking at historic trends & current movements

You can’t make a good assessment of an asset’s likely future value if you don’t take its history into account. Buying in when a currency is at an all time high is unlikely to net you good returns, for example, so you need to delve into the price history over the long term to get a sense of where it’s at today.

Understanding the risks

Most importantly, new traders have to realise that the crypto market is very volatile, as mentioned. There’s every chance that any money you put in will be wiped out by price movements, so only invest what you can afford to lose, as the old saying goes.

Tips for first time crypto traders

There are several strategies you can adopt to improve your chances when trading crypto, such as:

Starting small

Making your first trades with small sums will help you get a feel for trading, and let you determine whether it’s wise to keep going or to duck out.

Staying in the loop regarding crypto news

You have to start soaking up as much cryptocurrency media coverage as you can to ensure you are up to speed with current events that might impact asset prices.

Getting involved with the community

Another good way to adapt your trading tactics is to delve into crypto communities on social media sites like Reddit, Twitter and Discord.

Know when to get out

You have to integrate an exit strategy into your plan, and take profits when you can, rather than holding assets indefinitely.

Don’t put all your eggs in one basket

Relying on the success of a single crypto asset, or only investing in crypto and ignoring other opportunities, is unwise.

Final thoughts

If you’ve wondered what all the fuss is about regarding crypto trading, the only way to truly understand it is to try it for yourself, and as you can see it’s a straightforward process that does involve risk.

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