How do you trade cryptocurrencies in 2021?

Cryptocurrency trading has boomed in recent months. High volatility and trading volume in cryptocurrencies suit short-term trading very well. Here we provide some tips for day trading crypto, including information on strategy, software and trading bots – as well as specific things new traders need to know, such as taxes or rules in certain markets. We also list the top crypto brokers in 2021 and show how to compare brokers to find the best one for you.

How To Trade Cryptocurrency

Scared of missing out? Here is a quick plan to get you trading cryptocurrency quickly;

1. Decide if you want to own the cryptocurrency, or simply have a hunch that it’s value will go up or down.

• If you want to own the currency, you need an exchange – Try BitMex – It is a simple, user-friendly app
• If you want to speculate on the price, you need a broker. Check the cryptocurrency brokers list above.

2. Fund your account

3. Buy the Cryptocurrency you want, or open a trade on it’s price.

Congratulations, you are now a cryptocurrency trader! Remember, you can run through the purchase or sale of cryptocurrencies on a broker demo account. Unfortunately, you cannot practise on an exchange.

To exchange Bitcoin, visit: bitcoin to euro

Trading crypto generally revolves around speculating on it’s price, rather than owning any of the actual coins. For this reason, brokers offering forex and CFDs are generally an easier introduction for beginners, than the alternative of buying real currency via an exchange.

How to Compare Brokers

Which cryptocurrency platform you opt to do your trading on is one of the most important decisions you’ll make. The exchange will act as a digital wallet for your cryptocurrencies, so don’t dive in without considering the factors below first.

Some brokers specialise in crypto trades, others less so. Others offer specific products.

Apps & Software

Day traders need to be constantly tuned in, as reacting just a few seconds late to big news events could make the difference between profit and loss. That’s why many brokers now offer user-friendly cryptocurrency mobile apps, ensuring you can stay up to date whether you’re on the train, or making your sixth coffee of the day.

The cryptocurrency trading platform you sign up for will be where you spend a considerable amount of time each day, so look for one that suits your trading style and needs. Exchanges like Coinbase offer in-depth platforms, such as their Global Digital Asset Exchange (GDAX). It’s always worth setting up a demo account first to make sure the exchange has the technical tools and resources you need.

Security

Always check reviews to make sure the cryptocurrency exchange is secure. If your account is hacked and your digital currency transferred out, they’ll be gone forever. So whilst secure and complex credentials are half the battle, the other half will be fought by the trading software.