you’re anything like me, then you have a natural curiosity for all things Internet. And you might be asking yourself the same question. What is Crypto trading? Sure, there’s lots of content out there about it, and you probably heard the terms “cryptocurrency” and “bitcoin” thrown around. I have a neighbor who just got some huge special computer delivered to his place, just for the purposes of crypto trading. But what is it exactly?
Well, for starters, “crypto” is short for cryptography. Cryptography is its own kind of language, a secret writing of sorts that goes back to circa 1900 BCE (think Egyptian hieroglyphics, before computers were ever a thing. But now, the term cryptography is used more as it pertains to computer code. So what’s being traded exactly?
Well, it’s cryptocurrency that’s being traded. It’s digital or virtual money, not like the coins or paper bills that we are used to having in our wallets or pockets. Think of it as kind of like online banking, where you’re moving money around digitally, without physically touching it. You can buy or sell or exchange the cryptocurrency like any other currency you may trade in the world market. But how do you get this cryptocurrency in the first place?
You will need to choose a “cryptocurrency wallet” which is basically your own personal and secure digital code where you keep track of your transactions. Think of it as a personal bank account, but for your cryptocurrency. There are many to choose from with a simple Internet search, but we’d recommend one that’s officially endorsed.
Once you have chosen your wallet, you will need to choose an actual exchange to trade on. Just like there are stock exchanges for trading, or currency exchange agencies you might see while traveling anywhere in the words, cryptocurrency exchanges are just like that. Now, once you have set up your wallet and exchange, you’re already halfway there to starting your path in crypto trading.
You should also decide if you want to put in the work in buying and selling and trading, or simply just invest in cryptocurrency. Keep in mind that it takes a lot of time and research to do it right, just like it would work in day trading for stocks in the real world. The cryptocurrency market can be pretty volatile too, so we recommend that you start with the top three cryptocurrencies if you want to dabble as a beginner. Bitcoin and Ethereum and Litecoin are the best to start with
Remember, it’s all about supply and demand. The more demand, then the more people will be willing to pay for the supply. Good luck, and have fun with it!