How do I start trading crypto? PT 1
Most popular question we get as CryptoPreneurs is “How do I start trading?” In this article we are going to explain just how to get started and why you should want to. Don’t be afraid of the bear market. This is actually the best time to trade crypto and there’s multiple ways to get started.
First off, if you are exchanging fiat for crypto you will have to KYC also known as “Know Your Customer.” This is where you will fill out information on yourself similar to how you do a bank account. Since it’s digital you may be asked to take a picture of your ID and a bill or bank statement to verify you. You can use places like MoonPay, Simplex, Kucoin, or even CashApp to get started. If you use CashApp then the only coin available for purchase is Bitcoin, so if you want an alternate coin you’ll have to send your Bitcoin to an exchange so that you can exchange your Bitcoin for your coin of preference.
Plenty of exchanges to choose from as well. Here you won’t have to KYC unless you are trying to purchase crypto using fiat. Since we plan to deposit crypto assets, and not buy them with fiat, we do not have to KYC if you prefer not to. You can look up exchanges that are allowed in your country. A few US friendly exchanges are Mexc, Kucoin, Crypto.com, and FTX.us.
You may be wondering how to load your account, right? Transacting with crypto is as simple as sending an email. Just think about it. How do you send emails? You have a recipient address, a subject line, then a place to put your information. I want you to think of the bitcoin address as a recipient address. Think of the memo section as the subject line. This is only necessary when sending certain coins in or out of an exchange. The exchange will let you know if it is necessary. And finally I want you to think of the amount of crypto you’re sending as the information. So basically
recipient address=bitcoin(or whichever coin you’re sending) address
subject= memo
info= amount of crypto you would like to send.
Now that you have deposited crypto into your account let’s get ready to trade. In this example we loaded bitcoin into kucoin. If you deposited bitcoin into your main account you will need to transfer it to your trading account. Click on “Assets” > “Main account” > “Transfer”. You want to send from “main account” into your “trading account”
Let’s say I want to swap my bitcoin into ethereum. I want to find the eth/btc pair. I will select buy eth to exchange my btc into eth. But what if I didn’t want eth? What if instead I wanted to exchange my bitcoin for a stable currency like usdt? I would select the btc/usdt pair. In this example I will sell bitcoin and exchange it for usdt. If the currency you have is on the left of the pair and you want to exchange it to the currency on the right then you will sell. If your currency is on the right and you want the currency on the left you will need to buy.
This is how to exchange one crypto for another. The type of strategy you adopt will determine if you are a swing trader, day trader, or scalper. It’s important to know what type of trader you are. Trading is more personal than most think. Any experienced trader will tell you that trading will be a representation of your personality. If you are the type to like quick gratification you may want to scalp. If you are more patient than that maybe day trading will be a good fit. It’s still quick gratification, but could take a day or a few days before you see the results you’re looking for. A swing trader would be the type of person that’s patient on the market. Swing traders could hold from weeks to months before they take profit, but at least they don’t stare at a screen all day like the day traders and scalpers. Swing traders are also able to risk less to gain more. All depends on you which would be best for you. I suggest testing them all out to find which works best.
There are 3 different ways to trade crypto. Spot, Margin, and Futures. We’ll go over the difference between these three in our next article. Talk to you then.
