Rapidly growing digitization is also affecting the investment world, as evidenced by the skyrocketing price of crypto. Now crypto trading has become one of the most popular investment instruments because it can provide huge profits. The traders who transact bitcoin, ethereum, and other cryptocurrencies are increasing day by day.
Along with the high profits that can be obtained, the risk of trading crypto is no less big, you know. However, it did not dampen the interest of many people to jump into it.
If you are also tempted to trade crypto as well, you should first understand the concept of buying and selling digital currencies to avoid the risk of substantial losses.
You must have often heard the term stock trading or buying and selling shares, right? Well, crypto trading has the same meaning, it’s just that the object of the transaction is cryptocurrency.
Cryptocurrency itself emerged because of the blockchain and digital currency market. Some well-known types of cryptocurrencies are bitcoin, ethereum, and doge whose values reach tens or even hundreds of millions of rupiah.
Traders will trade their crypto assets. But keep in mind that crypto has a very high level of volatility and the market is not for a full 24 hours. This is different from the stock market which is only open during business hours and closed on certain days.
That is, the value of crypto assets can change at any time regardless of time and hour. If you are in the world of crypto trading, then you should often monitor price fluctuations, even in the early hours of the morning.
Trading crypto is actually not difficult, but requires the right strategy to avoid losses. Here’s how to start trading cryptocurrencies.
Before trading crypto, you must understand the types of cryptocurrencies that are sold on the digital money market. The most famous are bitcoin, ethereum, and doge. However, there are still many cryptocurrencies with lower values such as ripple, tether, monero, and so on.
Do a detailed analysis before you decide what cryptocurrency to buy. See the trend of up and down prices for the last month to the last year. If you are still inexperienced or afraid of making mistakes, you can ask a broker for help.
After crypto investing and trading became very popular even among Indonesians, it is now much easier to buy cryptocurrencies. You can buy it through an online investment application that can be downloaded for free.
Then, register and verify identity. Usually you will be asked to upload a photo of your ID card and a selfie while holding the identity card. You can only top up after your account is approved by the application.
The next step you have to do is buy the cryptocurrency that you will sell later. Unlike stocks, the crypto market is active 24 hours a day. So you have to be really observant in choosing the right moment, when you should buy crypto currency.
Crypto trading is a high level of speculation, so you should understand the risks well before deciding to get involved any further. If you are still a beginner, start with as little nominal capital as possible.
Once you have a cryptocurrency, you should check its price frequently. In addition to monitoring directly, you can also read the latest news about the crypto currency you buy. You can use broker for buying and selling crypto, you can read bybit review for your reference.
The ups and downs of crypto prices spread very quickly, including on social media. When the value goes up, feel free to sell it. Unlike investing, trading takes a short time. That means, you don’t buy the asset to keep it for a long time.