3 Steps before Cryptocurrency trading

Estimates of the cryptocurrency market’s total value are above USD 1 trillion. This estimate is based on CoinGecko‘s index of 6,124 assets.

Bitcoin represents roughly 69% of the market’s value, according to Coinbase.

Traders aren’t surprised by the market’s soaring value. Some credit the increase to the vast increase in the number of institutional investors joining the market. Perceptions of the cryptocurrency market have changed from “scam” to a viable investment, especially during the pandemic.

Unfortunately due to the hype in the market, there are still many scams in the region. Many readers can recall One Coin scam in Singapore or CubeCoin in the Philippines.

For this reason, we felt it would be helpful to release more information regarding the Cryptocurrency market. Today we present a simple guide on how to get into the market.

Step 1 – Crypto Information

The first step is to gain knowledge and read up on the market. Cryptocurrency is not a game, and some have lost money due to wrong information and advice. Like with all investments knowledge equals power. Before putting your money into a coin, studying the asset is a good idea. One of the best tools for this research is Coinmarketcap, a website where you can find every coin and token available. The data includes capitalisation, supply, trade volume etc. Cryptocompare is another useful site for this sort of data. We suggest you visit these websites to verify if the ICO (Initial Coin Offering) or coin you are interested in is a legitimate asset.

Step 2 – Choose a reliable exchange.

To invest in cryptocurrencies, just like fiat currency, you need a place where these coins are traded. To commence, you will need to register and put some funds into your account, and then start buying and selling crypto. There are also decentralised and centralised exchanges, and it is essential to know the difference. We will do an article on the differences another time. Still, for now, the main difference between a centralised and decentralised exchange is that in a centralised crypto exchange, most of the control over your account remains in the hands of the third party which runs the exchange. On the other hand, with a decentralised exchange, all the account control remains with you. Coingecko has a list of reliable exchanges here.

Step 3 – Choose a Wallet

Almost all cryptocurrencies nowadays have their official wallets such as the Bitcoin Core Wallet, Ethereum Wallet or MyEtherWallet, Litecoin-QT, and Dash Core. You will find a link to their official wallet on most cryptocurrency websites.

Multi-currency wallets are also available. Some exchanges have their own wallets such as Coinbase Wallet or Trust Wallet.

Conclusion

Cryptocurrency trading has a range of differences when compared with the traditional fiat exchanges. To succeed in crypto, you will need to find trustworthy information sources, perform your research carefully, pick the most suitable exchange and wallet, and finally manage those assets.

Disclaimer: South East Asia Business Post is not an affiliate of any wallets/exchanges/cryptocurrencies. We are not liable for any information we share here. We insist that our readers do their research before investing.