A Short Guide on How You Should Start Trading Bitcoin, Ethereum or Litecoin with TradeToro
Now that you understand what cryptocurrencies are, and the incredible volatility they have, here is a short, step-by-step guide on how you can immediately start trading cryptocurrencies with TradeToro. It isn’t rocket science, and you can do it even if you are a complete novice. All you need is proper market analysis and a calm attitude.
1. Select a Cryptocurrency Exchange
When you type “what to look for in a cryptocurrency exchange platform”, you will almost always find that responsive customer support and an easy-to-use interface are at the top of the list of important factors. And that is exactly what TradeToro offers. We focus on streamlined and precision-based customer support and offer our traders a simple, but powerful trading platform. With us, there is no learning curve – you can jump in right away.
2. Select the Type of Cryptocurrency You Want to Invest in for the Long Haul
Rather than going for month-to-month or even day-to-day profits, it is always better to go for long-term profits – after all, that is what seasoned traders do and think like. However, just like the stock exchange and commodities markets, there are plenty of options you can choose to invest in. Ripple, Litecoin, Bitcoin Cash, IOTA, etc. are all digital currencies you can put money into.
However, especially in the beginning, it’s strongly recommended to stick with the most tradeable and popular digital currencies, such as Bitcoin, Ripple and Ethereum. In general, you should keep these three tiers in mind when you’re selecting a crypto-commodity:
- Large cap (these are the top five cryptocurrencies on the market with market capitalizations of billions of dollars)
- Mid Cap (market capitalization exceeding $200 million)
- Small Cap (market capitalization smaller than $200 million)
You could say that these 3 tiers are what defines digital currencies. Never make the rookie mistake of investing in a digital currency just because they are so cheap and can be traded at 1 cent. You have to understand that the price of that currency will not suddenly shoot to from 1 cent to $300. Plus, the value of the coin in dollars or euro isn’t what’s important when you look at the overall market. It is how valuable that market is.
3. The Trading Price of the Cryptocurrency
As stated above, don’t buy a digital currency just because it is cheap. Always evaluate every digital currency and consider all its vital factors, such as valuation, coin supply, the blockchain technology it uses, and the target market.
To maximize your capital gains, you need to implement strategies such as the “buy low – sell high” method. At TradeToro, we can help you refine your trading strategies to match those of seasoned professionals.
There is no question that cryptocurrencies are the future of trading. But they have also become one of the most popular ways of making a substantial amount of money. So, the sooner you start trading, the better your chances are of potentially making it big in the market.