Cryptocurrency is a red-hot investment trend right now. This money includes a huge amount of risk but double benefit. If you are planning to invest in cryptocurrency, this article is what you need right now. Learn more about how to safely and smartly sell and buy cryptocurrency.
Be Clear About Your Investment Decision
Choose whether you want to buy or trade your cryptocurrency. You can decide to own units of this money or can trade it. By trading, you can reflect on the price without ever taking ownership of the currency. When you trade, you are asked to put up a small proportion of your total position size. This allows you to make more money on the price and gain a better exposure with your investment amount. Besides, there are various tax advantages to trading over investing. The best one is you don’t have to pay capital gains on the profits of trading cryptocurrencies.
Set Up Your Account
You need to have an account in order to buy cryptocurrency. Make an account on a cryptocurrency exchange and store the cryptocurrency in your digital ‘wallet’. When you want to trade your cryptocurrency, make a brokerage account, and you’ll be exposed to the underlying market for faster trade and better profit.
Choose Your Currency
You can trade all the 1500 cryptocurrencies. You can easily trade the major currencies like bitcoin, bitcoin cash, Ethereum, Ripple XRP and Litecoin. Don’t get confused with the variety. Choose those that you know something about, and become an expert in their price changes and fluctuations, rather than taking a huge risk and investing in a random currency.
Create A Trading Strategy
Study and understand the market before stepping into the world of cryptocurrency. The pricing of cryptocurrencies depends on a whole host of factors like government regulation, media coverage of the sector, fortunes of the US Dollar, and financial statements from influential business people or government ministers.
Once done creating a trading strategy, you will need to define your ‘close’ conditions or point that you will exit a trade. Investing and trading in cryptocurrency involves a huge amount of risk. Once you have hit your maximum loss, or a position has reached your target, you’ll need to close out your position.
Start small and learn more about how these markets work and what influences them. It’s better to invest in Cryptocurrency only when you have complete knowledge.
Create your free account and start trading today.
Sign up to CoinSpot with your email address and you will receive $10 worth of Bitcoin* when you complete your first AUD deposit. That's $10 of new coins just for signing up. From there you can link your bank account or make a cash deposit when you get more comfortable. Other deposit method are available