Cryptocurrencies are the future of the world’s economic system, and they’re here to stay. Like others interested, you might have been planning to invest in cryptocurrencies. So, if you are thinking to do so, let us tell you that it is the right time to start too and create a crypto trading account in a genuine platform. Cryptocurrency trading is a genius way to start with diversifying your portfolio. It’s also a fun way to learn more about the underlying technology that powers cryptocurrencies and blockchain.
In this guide, we’ll walk through how to get started with cryptocurrency trading and how to open a crypto trading account.
Why Do You Need a Trading Account?
In order to trade cryptocurrency, you need a trading account. These are actually online platforms that facilitates their users to buy cryptos from market and sell them. You can do this with the help of fiat currencies you use (i.e., USD or EUR) or other cryptos if you have. The most popular trading platforms are Coinbase, Binance, KuCoin, and Bittrex. Each has its pros and cons, but it is generally considered a safe place to store your cryptocurrency investments.
The good news is you won’t have to give out a lot of your info to make an account on an exchange. Most sites will ask for your email address and password, but that’s about it.
The bad news is that you have to go through an identity verification process where you need to provide some of your ID proofs to the trading platform. This ensures that the exchange only allows real people (i.e., not bots) to trade on its platform.
How to Open a Cryptocurrency Trading Account
1. Decide on a Brokerage or Exchange:
To start, your first move would be deciding on a broker. There are many brokers available, with some better than others. Researching and reading reviews before choosing one would be the best things to do if you want a genuine and professional broker.
When deciding on a broker, you must find out what their trade fees are. Some brokers charge more than others for certain services, so you must find out if they have any hidden charges before signing up.
2. Open an Account:
Once you have found an online broker that suits your needs, it is time to open an account with them. You’ll have to provide some info, and also need to be 18 years old or older for them to open an account for you.
To open an account on a crypto brokerage, this under-mentioned information would be needed-
- Your full name
- Email address
- Date of birth
- An active phone number of yours
- Driver’s license or passport
3. Make Sure You Have a Wallet Ready:
Once you’re finished making an account, now, you should have a cryptocurrency wallet in order to securely store the cryptos you would buy further. You can either set up an online wallet or download one onto your computer or phone. There are lots of different types of wallets available, so make sure that whichever one you choose supports the kind of currency you purchase from your broker.
4. Deposit Funds into Your Account:
You need available money in your trading account to start buying. You can take the money from any of your bank account by linking it or any credit/debit card.
Once you’ve deposited funds, you can start buying bitcoin and other cryptocurrencies. Most of the time, you’ll be offered currency options like USD and EUR, the most widely accepted currencies. Exchanges that have been offering their services for longer will also have other options, like INR and CNY.
5. Start Trading:
Once that’s done, you can start trading. Now you can buy bitcoin and other cryptocurrencies at a price that’s listed on the exchange, which is usually determined by the market.
If you want to buy bitcoin at the lowest price, it’s best to do so when there isn’t much demand. This can be hard to predict, but if you are looking for a good time to buy bitcoin and other cryptocurrencies, look for low-volume days on an exchange like www.golden-profit.co
And that’s it: a simple, concise guide to opening your very own cryptocurrency trading account. Well, it is not that simple though. You’ll need to research, learn about the different currencies and how they work, and ensure you’re comfortable with the risks involved before you start trading.