How to trade cryptocurrency?
Want to catch the hefty profits? Here is a plan to help you trade cryptocurrency easily:
- Decide if you want to own the coin or just have a hunch whether its value will go high or low.
- If you want to own the coin, you need an exchange
- If you need to speculate the price, you require a broker.
- Add capital to your account
- Buy the digital coin you want and start your trade.
Congrats, you have become a cryptocurrency trader! Now you can buy or sell your digital currency on a broker account. Cryptocurrency trading with an online broker like GlobalCTB is all about speculating its price rather than owning the coin in actual sense.
The right way to compare brokers
Which cryptocurrency platform you have chosen for your trading is an important decision to make. The exchange functions as an online wallet for your virtual currencies, so you shouldn’t proceed without considering the factors mentioned below:
Some brokers are professional in crypto trading. They offer high leverage and thus risk and reward are also high. It is up to you to choose a broker that suits your needs, requirements and preferences.
Apps and software
Day traders should be constantly online as they have just a few seconds to react to news and updates leading to hefty profits and losses. This is why a lot of online brokers provide with user-friendly cryptocurrency mobile applications to help you stay updated even while you are on the go.
The cryptocurrency trading platform chosen by you is the place where you will be spending most part of you day, so choose the one which matches your trading style and needs. It is important that you set up a demo account first and check the technicalities and resources of the broker.
It is important to check the reviews of the online broker to find out if it is secure for trading or not. If your account gets hacked or your currency gets transferred somewhere, it will be gone forever. So, choosing a secure online broker makes you win half the battle.
Every exchange has different commission charges and fees rate. If you are a day trader, then making high traders with just marginal difference in the prices may cut your profit a lot. The three major fees you are charged are:
Exchange fees: It is the fee charged to use the cryptocurrency software of the broker. The coins you are trading in affect the rate
Trade fees: It is the fee charged to trade between currencies on the exchange
Deposit and withdrawal fee: It is fee charged when you deposit or withdraw money from the broker.
The decision is a big one to make. Do your math, read the reviews of the previous users and try different exchanges first. You may also make demo account in some of them to check their functioning. Once you are satisfied you can make a real account and start your cryptocurrency trading instantly