Beginner’s Guide To Cryptocurrency Trading: 5 Easy Steps To Be A Crypto Expert.

Thanks to technology, cryptocurrencies have taken the world by storm. Some nations, like the United States, Canada, and the United Kingdom, support the legal use of Bitcoin and other crypto tokens. Hence, cryptocurrency trading has become prominent in these places and around the world. 

However, it’s possible to not understand how cryptocurrency trading works. This beginner’s guide to trading cryptocurrency answers all the basic questions you may have. It also shows Nigerians the best app for converting their crypto to Naira within seconds.  

What Is Cryptocurrency Trading?

The simplest way to describe cryptocurrency trading is buying and selling cryptocurrencies, just like stocks, commodities, and forex. It follows the same trading rule: ” Buy low and sell high to make profits.” This means crypto traders always look for when a cryptocurrency’s value is low and sell when the price peaks.

It is important to note that these digital assets are volatile in nature. This means that market forces easily influence the price movements of cryptocurrencies. Hence, beginners should start with little capital until they become experts and can afford to take bigger risks. 

Read more: Crypto to Naira in Seconds: Ridima’s Groundbreaking New Feature!

How Is Crypto Trading Different from Stock Trading? 

Crypto trading is often compared with stock trading because of their volatile nature. However, they have major differences. Stock trading involves investing in top-performing companies and expecting a certain Return on investment (ROI) after a certain period. You can expect your investment to grow according to the company’s profits. 

Cryptocurrency trading is a different game. It often involves investing in newer tokens (or a presale event) and hoping the token will surge exponentially in the future. This exciting investment is highly volatile, as it can reward investors handsomely or vanish overnight. Short-term investors who want menial gains often invest in established crypto projects like Bitcoin and Ethereum. These crypto giants have a stronger network and can hardly become non-existent. 

Read more: How to Avoid Crypto Scams

5 Basic Steps for Beginners in Crypto Trading

Now that you know what crypto trading is, it’s time to learn the five basic steps to get started. 

1. Sign up for a crypto exchange account. 

You need to have an account with a crypto exchange platform. This requires your personal information and a Know Your Customer (KYC) verification. Secure your account with strong passwords and two-factor authentication (2FA). Only create accounts with credible exchange platforms like Binance. 

2. Fund your account 

Funding your account means you are adding your capital, which will determine how much profit you will get. You can fund your crypto wallet via bank transfer, credit or debit card, or by transferring an existing balance from another cryptocurrency wallet. As a beginner, only add an amount you can afford to lose. 

3. Choose a crypto to trade.

This stage gets tricky as it requires careful consideration. Crypto veterans often employ fundamental and technical analysis to make informed financial decisions. These analyses examine the historical data, current price, and recent innovations of a cryptocurrency. That way, one can judge if it is a worthy investment or not. As a beginner, you may need the help of an expert on your first few trades. 

4. Perform a transaction. 

Now that you have chosen a crypto token, it is time to perform a transaction. This means selecting a pair. For example, BTC/USD means trading Bitcoin with United States dollars. To complete a transaction, you also need to indicate the order type and amount. 

5. Store your cryptocurrency 

Your account has an intrinsic wallet where you can store your cryptocurrency funds. This helps you have the funds you intend to use for the next trade. However, you can also withdraw your profit and convert it to fiat currency to meet immediate needs. 

Read more: Crypto Mining vs. Crypto Staking: What’s the Difference?

The Best App To Convert Your Crypto To Naira in Nigeria

If you are a Nigerian, the process of converting crypto to Naira is not as smooth as in other countries where crypto is legal. You need a peer-to-peer to collect “what you have” and give you “what you want” at a high rate. Ridima is undoubtedly the best app for converting your crypto to naira. Many customers attest to its swift transaction and quality customer satisfaction. See the example below using BTC as the example; 

• Open the Ridima app 
• Go to the menu on the app. 
• Click on the Trade Digital Assets button. 
• Click on Sell or Buy and indicate the cryptocurrency you want to exchange. 
• In this case, you are selling your BTC in exchange for Naira. 
• Select Bitcoin as the cryptocurrency. 
• Generate your permanent wallet address (This is a one-time action for all future actions). 
• If you have done this before, you don’t have to generate any more. 
• View the current exchange rate to know the worth of your Bitcoin. 
• Confirm if you are satisfied with the rate. 

Read more: Is Cryptocurrency Different from Bitcoin? 

Conclusion

In crypto trading, safety is paramount. You must ensure your funds are well protected from scams, cyber-attacks, or any third party. Hence, you must check the reputation, features, and compliance of any exchange platform before you open an account with them. Also, if you are a Nigerian, trade your Bitcoin and other cryptocurrencies with Ridima to enjoy fast transactions at a mouth-watering rate. A trial will convince you. 

References 

https://cointelegraph.com/learn/articles/how-to-trade-cryptocurrencies-the-ultimate-beginners-guide

https://cointelegraph.com/learn/articles/the-history-and-evolution-of-cryptocurrency-wallets

https://www.myridima.com/blogs/best-app-to-convert-bitcoin-to-naira

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