There are several ways to make money with bitcoin and cryptocurrencies. This has been one of the best ways people make money online with the lowest investments. Juts to remind you bitcoin investors in 2017 made at least 10x their investment and those who cashout by November made 18 times their investment.
Making gains in the crypto world is very exciting and losses very painful especially when you are a newbie. The media talk so much about the disadvantages of trading crytocurrencies, but do encourage trading of stocks. In my opinion, trading stocks and cryptocurrencies involve the same risk level but the reward is not the same. The reward in crypto trading is far more higher than the reward in stocks. You can equally get started with hundreds of dollars and change then to thousands in a very short time. I dont actually encourage to be traders to think about this. I recommend you focus on making a successful trade. That is buying low and selling high.
But wait, let me share some of the advantages of trading cryptocurrencies before getting into how to do this, let us see some advantages over trading fiat and stocks.
i. You can start trading cryptocurrencies with any amount and it will be worth it.
ii. The markets are always open including public holidays and Sundays.
iii. There are decentralized exchanges in the crypto world allowing for more transparency.
iv. Crypto trading charts are simpler to read compared to stock market charts. v. You can get cryptocurrency charts for free.
Sites like crypto.watch can be access to get litcoin,ethereum and bitcoin signals. Trading view equally provide chart patterns which can are helpful in making successful trades. Most of the trading platforms equally provide excellent trading charts to provide you with the best trading experience. If you want to get premium you can get started with coinigy which is used by most crypto traders. There are several trading platforms(Exchanges).
Unfortunately at the moment i am doing this post my favourite trading website binance.com is down. I will be using the site called Kucoin to show you how to buy and sell cryptocurrencies
Buying and Selling Bitcoin Cryptocurrencies
Before getting into how to buy and sell cryptocurrencies there are certain terms you need to understand as you will find them on exchanges or on the internet while doing your research. There are two major types of orders you can set in the market
This orders orders are executed at the best available price. It is a way to buy or sell cryptocurrencies and crypto assets instantly. You can always find the market price on at the top of the trading book( Buy or Sell). However the execution and the price is not guaranteed. You are thus advice to always check if the order was executed in the case where the exchange does not show a confirmation message.
In trading, The Limit orders allow you to set a maximum purchase price for your buy order, or a minimum sale price for your sell orders. If the market doesn’t reach your limit price, your order will not be executed.
Setting a market or limit order depends on you .
Managing Risk with the Stop Loss Order
The stop loss order is a sell order set below the price you bought an asset. it ranges from 5-20% depending on you trading time. Minute,day,week or month. Short term traders and long term traders have different stop loss values .
Getting Started with Trading
You will need a trading account and you will need Bitcoin or Ethereum in the account.
I am assuming you are already signed in. So in your exchange account, in my case (kucoin)
Deposit Bitcoin or Ethereum. Click on Balance or assets depending on the exchange and select a suitable way you want to deposit into your account. I am assuming first time traders here , so you can deposit bitcoin or ethereum as there are easy to have compared to the other cryptocurrencies.
In the this tutorial i have deposited Bitcoin in my account.So i will go to markets and select Bitcoin. We are going to buy and sell a cryptocurrency called Quantstamp (QSP).
How To Buy Cryptocurrencies on An Exchange
Go to markets. Select Bitcoin and then Search the asset on the search bar. On scroll down the cryptocurrency list and Click on the Coin Name/Symbol. You Should see a page that looks like this:
To the top left you have some values in red( Sell Orders) . While scrolling to the Bottom you will find other values in green(Buy Orders).
The Ask price permits you to buy Instantly(market order) while any other price will be executed later.
How to Sell
By following similar steps as in the buy case. You can sell a crypto asset instantly using the bid price. You can enter the desire price and Click on Sell.
You can set a stop loss order for your buy order by following similar steps.
There are equally different trading strategies which we will discover in the days ahead. I hope you are able to buy a crypto asset after reading this post. Your comments and contributions are always welcome.