Question No. 6:
Is It Difficult to Trade Cryptocurrencies?
by Ian King
I can understand why trading bitcoin and other cryptocurrencies might seem difficult — intimidating even.
It’s a brand-new market, so there’s a lot of differing information out there that might be hard for the lone investor to sort through. There are also unique terms and trading platforms to get used to — similar to when you first start trading options.
But just as with options trading, once you get familiar with the terminology and your trading tools, you’ll see that trading this market isn’t that hard.
In fact, I find it accessible and lucrative.
That’s actually why I created my Crypto Profit system: I wanted to pull together all of the information out there, add my own expertise and create a streamlined, user-friendly way to enter the crypto markets.
I don’t want this “it’s difficult to trade” myth to keep investors out of a market that can deliver quick 1,000% gains or more. Making gains like that should be accessible — not intimidating.
So today, let’s break some of those crypto myths. That way, you can see how much simpler it is to trade this market than you might have thought…
Myth 1: It’s hard to open your first crypto account. Setting up your first account actually takes you just a few minutes, particularly with Coinbase.
I like Coinbase because, as I mentioned yesterday, it’s FDIC insured up to $250,000 for U.S. residents. You can also easily add a debit card or bank account to Coinbase by following its instructions and verifying your identity. So I prefer for new traders to start off with this “entry” platform.
It’s why I do a walkthrough tutorial of this in my Insider’s Guide to Crypto Fortunes Course. I’ll tell you more about this course during tomorrow’s Crypto Profit Summit.
But I’ll give you a hint of a trick I recommend in this course — always use two-factor authentication to secure your accounts. Most platforms (like Coinbase) provide this option, and it offers another step to verify it really is you signing in.
Myth 2: It’s hard to buy your first crypto. As I mentioned in Myth 1 — you have the option to easily add a debit card or bank account when you create your account. That means you can buy something like bitcoin instantly, right off the website.
Just start by clicking on the buy/sell tab in Coinbase.
And in just a few minutes, you’re now officially a crypto trader.
Keep in mind that many platforms and exchanges offer a limited selection of cryptocurrency options.
Coinbase offers the four “blue-chip” cryptos: bitcoin, bitcoin cash, Ethereum and Litecoin. That’s why it’s a good starter account. You will need at least one of these cryptocurrencies in order to buy some of the other altcoins out there, which can only be bought with cryptos (not USD).
Ok, so now you have, say, your first $100 worth of bitcoin. You just have to transfer your purchase to a wallet (or a crypto exchange) for safe keeping.
Myth 3: It’s hard to find the right wallet. First, I want to address what a wallet is. I know this might be a new term for some people. The simple explanation is that it’s a software program that stores your cryptocurrency. In doing so, it protects your investment. It also allows you to send and receive coins through blockchain.
There are five main types of wallets out there: desktop wallets, online wallets, mobile wallets, hardware wallets and paper wallets. So you have plenty of good options.
I list all of these in the educational materials for my Crypto Profit system — plus my top picks for each type.
For now, just know that desktop, mobile and online wallets (such as Coinbase — yep, Coinbase can act as a wallet!) are more user friendly. But these can be more vulnerable to hackers.
On the other hand, hardware and paper wallets are the safest storage options because cyber criminals are less likely to get ahold of your information when it’s in “cold storage.” Just make sure you keep track of where you hold these wallets. And don’t store all your coins in the same place.
Myth 4: It’s hard to transfer your cryptos to other exchanges/wallets. It’s not — not as long as you’ve had time to familiarize yourself with the platform and the process.
Honestly, that’s all it takes to know how to transfer your cryptos. While different platforms have different setups, the main trading mechanics tend to be similar. So once you learn one exchange (like Coinbase), you’ll be better prepared to use the next one.
Wallets are simple to open too, but they involve an extra couple of steps. Here are a few tips for using them:
- When you set up your wallet, check that you can see your balance (which should be zero) and your receiving address.
- Send a small amount of bitcoin — or another coin — to that address to try it out.
- Check that the test transaction went through correctly.
- Then transfer the rest.
This will help keep your investments safe by making sure you have the right receiving address on file. You always want to double check your process with test transactions.
There’s more to it, but I go through it all in my Insider’s Guide to Crypto Fortunes Course. Once you’ve seen a walkthrough, you’ll be far ahead of the game when venturing into the crypto markets.
Myth 5: It’s hard to stay safe in this market. For most people, it can be. That’s why I’ve developed a proprietary strategy to navigate this market.
There are about 3,000 crypto coins out there now. About five to 10 new ones come into the market every day.
Many investors might get caught up in the hype and immediately jump into those new cryptos. But most of them can’t see the difference between a 100% loss and a 10,000% gain until it’s too late. That’s what makes the market daunting.
In fact, I’d say less than 100 are worth investing in now.
But with a proven strategy like mine, you’re ready to sidestep the big losses that come from investing in the wrong coins, while collecting quick profits from the right ones.
In the end, it’s all about having a plan. That’s how to make trading in any market safer.
Well, that brings us to the end of this FAQ series. I hope this helped give you a more in-depth view of the cryptocurrency market.
I’m really excited about tomorrow’s big event, so I hope to see you there at 1 p.m. EST. Be sure to go to www.cryptoprofitsummit.com before the event begins.
Creator, Crypto Profit Strategy