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Despite the recent crackdown on crypto mining, Bitcoin has reached $60,000 in the past weeks. And market experts believe that Bitcoin and other cryptocurrencies will continue to rise and become more mainstream as more corporations and countries adopt its usage as a currency. So have you jumped on the crypto trading bandwagon?
If not, don’t worry, as it’s never too late to create a crypto trading strategy. Today we’ll help you get started by showing you a crypto trading checklist that’ll help you earn lots of money.
Choose the Right Crypto Trading Platform
Before you can start trading, you’ll need to pick a trading exchange application. Fortunately, there are plenty of crypto trading platforms you can choose from, but you’ll want to make sure it’s a reputable one. Here are some of the best ones:
- Coinbase
- Binance
- CoinDCX
- eToro
- BlockFi
Each one offers different options for cryptocurrencies, so make sure that the platform you choose has the crypto coin you’re interested in trading. Additionally, you’ll want to ensure that the platform has Cashout cryptocurrencies, which means you can turn your coin into cash.
Start to Diversify
Once you pick the right platform, you’ll need to decide what coin you want to start trading with. A good rule of thumb when it comes to trading with cryptocurrencies is having at least three in your portfolio. You’ll want at least one of them to be a stablecoin and the other two entirely up to you.
Stablecoins are coins that are backed by established currencies like the USD or EUR. They are generally more “stable” in the market, which means you won’t see them fluctuate too much. Here are a couple of stablecoins you should consider:
- Tether
- USD Coin
- Binance USD
- Ampleforth
Once you choose a stablecoin, you can move on to other crypto coins like Bitcoin, Ethereum, Stellar, or Polka Dot. But, remember that these aren’t stablecoins, which means they are prone to move up or down in the market at any given moment.
Prepare an Exit Plan
Initially, you’ll want to stock up on as many crypto coins as you can invest in. But, you’ll also want to start planning out an exit strategy, so when the time comes to cash out, you can do so without losing too much in the transactions.
A good tip to follow is setting an amount of money you’ll want to earn before cashing out, so as soon as you reach it, you can withdraw it.
Of course, you should use some of that money and reinvest it so you can continue trading with cryptocurrencies. Additionally, if you live in the U.S, you’ll need to declare it in your tax forms, so you may need to pay an additional fee.
Follow This Crypto Trading Checklist
Getting into crypto trading may seem daunting with so many available cryptocurrency markets. But, hopefully, with this crypto trading checklist, you’ll be able to do it with ease. So, don’t wait any longer and start trading today!
What cryptocurrencies do you trade? Let us know in the comment section! And if you want to read more articles about this market, be sure to check out our other posts!