In the crypto world, we know what is called trading. This is basically the process of buying and selling cryptocurrencies. In this trade, the trader will buy or sell crypto coins or exchange fiat currency into crypto. Cryptocurrency trading is usually done on exchanges. This crypto trading takes place 24 hours/7 days non-stop.
One of the advantages of crypto trading is that you can get crypto-assets and even profit from it with an easy process. This sale and purchase are also suitable for novice crypto-asset users because only with the internet and a smartphone you can access cryptocurrency exchanges that are already widely available.
How to Buy Crypto
Before starting cryptocurrency trading, of course, you must have the asset first. You can buy these assets on the exchange. Crypto exchanges are widely available including in Indonesia, where there are already 13 exchanges that have been registered with CoFTRA. This exchange has gone through a series of stringent selections and has successfully passed verification so that its security and credibility is guaranteed. One of the most popular in Indonesia today is Indodax which you can get for free.
Things To Look For Before Buying Crypto
With hundreds of options, each with a different value and purpose, it’s a good idea to do some research beforehand on the cryptocurrency you want to buy or trade.
Only a few cryptocurrencies like Bitcoin and Ethereum have reached the level of mainstream popularity. However, even established currencies can fall victim to extreme price volatility. It is difficult to predict how the price will fluctuate with newly minted coins because there is little historical information to analyze. Backing a new currency can prove to be very profitable, but just the same, there is a possibility of losing money if you make the wrong move.
You can study the history of crypto assets in various media, videos, or others to get information about valid cryptocurrencies. You can also see how the price movement of each crypto asset on the exchange is, whether it has a negative or positive trend.
Cryptocurrency Trading Mistakes to Avoid
Just like traditional investing, it’s good to have a diverse portfolio and spread the risk. That way, if one cryptocurrency performs poorly, it won’t have a bad impact on the overall value of your assets.
Another tip is to try and determine why the value of a particular cryptocurrency is rising or falling before making an investment. Buying a free-falling coin and waiting for its value to increase again may seem profitable, but there is no guarantee that the coin will bounce back. Chasing profits by supporting a soaring currency can also look tempting, but there is always the risk that a “pump and dump” scheme is a repeating cycle of Altcoins getting price spikes and being followed by big drops.
Before trading triple check, make sure the nominal, wallet address is correct because otherwise there is no way to return it. Lastly, don’t get emotional and keep learning to read asset price movements either technically or fundamentally.