Cryptocurrency trading is attractive to users because it allows them to make a profit with a small initial investment. Since cryptocurrency prices are volatile, you can buy cryptocurrencies at low prices and increase your investment in the short term. A variety of trading strategies and instruments allow you to make both long-term and short-term profits.
To trade cryptocurrencies, we first need to select an asset to buy and choose a trading platform.
Selecting an Asset
Before buying cryptocurrencies, you need to learn about them. Check the project for the following aspects:
- What does the project consist of, and is it useful for the industry? Could it be a specific blockchain technology that solves some important problems?
- What is the project team like, do they have experience?
- Who are the project partners and investors?
- What is the current cryptocurrency price and are the assets liquid?
- How have prices behaved during market fluctuations?
- Look at the project’s social media, are they updated regularly?
Choosing a Platform
Once you have decided on an asset, you need to find out where to buy it. Reputable cryptocurrency exchanges for trading cryptocurrency: Binance, WhiteBIT. They offer:
- Leveraged trading (you can multiply your initial investment by 10, 20 or 50 times).
- Futures (derivative contracts and correct price forecasting allow you to make a profit even if market prices fall).
- Spot markets (trading at the market cryptocurrency live prices).
- Staking (passive income from holding assets locked on an exchange).
Only large and reputable exchanges have access to so many trading instruments. In addition, the purchase of cryptocurrencies with fiat currency is only possible on official platforms such as Binance, WhiteBIT, etc.
Where to Begin Cryptocurrency Trading?
Platforms such as WhiteBIT and Coinbase offer demo trading options that allow beginners to learn the skills needed to buy and sell cryptocurrencies. WhiteBIT also offers a demo trading option, educational materials and trading guides, so users can learn and practice simultaneously.