You might have started getting interested in crypto just recently, so you’ve come to your next step — trading cryptocurrencies. It might not sound too complicated, but for people that have just entered the crypto world, a guide to trading will definitely come in handy.
For that reason, we’ve prepared a short and simple guide that will go over all the steps needed to become a crypto-trader regarding fiat to crypto trading. Hopefully, this guide will help you navigate the challenging world of crypto trading so that you can come out on top. Take a look.
Where to Start?
If you have some money that you would like to invest, there are plenty of options. One of them is trading your fiat money to cryptos. However, there are a few steps you should look out for. So before you start, go over the following checklist.
- Availability — Before you invest anything, be sure that crypto exchange is available in your country.
- Reputation — Next, research the exchange website you will use. Make sure other users are happy with it, read both positive and negative reviews before you come to a decision.
- Safety — Choose exchange sites that have a high approval rating from users and employ the latest security measures. They might take longer to register, but it’s better to be safe than sorry.
If this sounds confusing or you have other crypto questions, it’s best to go through the basics and do thorough research before you trade your hard-earned money.
Create and Verify Your Account
It might sound like an obvious next step, but we wanted to take you through all the steps before you start trading your funds. Choose an exchange site that you like and open an account. You will probably have to go through a verification process before you’re allowed to operate on the site.
Most exchange operators go through SMS and 2FA verification processes. Once your identity is confirmed, you will need to select a payment method (bank account, credit or debit card, wire transfer, etc.). In most cases, you will have to confirm your identity for the payment option you’ve chosen.
Don’t worry — nobody is targeting you; it’s simply a basic safety procedure.
Now that you have your account and a confirmed payment method, you can start trading. What you need to do next is decide which cryptocurrency you want to trade. All digital currency exchanges have a list of available cryptos on their site, such as Bitcoin, Litecoin, Ethereum, NEO, etc.
As you might have guessed, Bitcoin is the most popular cryptocurrency for trading. Interestingly, this year, Bitcoin has hit a record high not seen since 2017. In that year, BTC hit its all-time high price of almost £15,000. After a couple of months of decentralized finance frenzy in 2020, the market has suddenly shifted back to BTC.
When it comes to market volume, the growing dominance of Bitcoin means that the alternative cryptocurrency market is stagnating. For example, Ether (ETH) did not see a similar spike in the same period as Bitcoin.
Which Cryptocurrencies to Buy in 2020
Some experts recommend starting with less expensive variants to Bitcoin, but if you’ve set your sights on the most popular cryptocurrency and have the means to go through with it, then do it.
However, Bitcoin is not the final world on crypto trading, as there are many other cryptocurrencies that you can buy in 2020. There are more than 7,000 altcoins on the market at the moment, so we will list the top five aside from BTC that have proven to be a stable investment in 2020:
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Tron (TRX)
Ultimately, it’s up to you to choose which crypto will be your trading asset.