How to buy and sell cryptocurrency in 2023

In recent years, cryptocurrencies have become a popular investment option. Effective February 2023, the total global market capitalization of all cryptocurrencies amounts to $1,070 billion, making it large enough to be considered the world's 23rd largest economy by gross domestic product. With the market growing at an unprecedented rate, it's essential for investors to stay informed and understand how to buy and sell cryptocurrencies.

This blog post aims to provide a comprehensive guide on how to buy and sell cryptocurrencies in 2023. We will cover everything from choosing the right crypto exchange to setting up a digital wallet and executing trades. We'll also discuss the importance of conducting thorough research before investing in any cryptocurrency, as well as some tips on how to stay safe and secure in the ever-evolving world of digital assets.

Risk is involved when you buy and sell in cryptocurrencies due to its volatility, but with the right knowledge and tools, you can make informed decisions and take advantage of this exciting market. So, let's dive in and explore the world of crypto trading together!

What is Bitcoin Trading?

When most people think of investing in crypto, they think of buying crypto coins and tokens outright. However, another popular way to invest in digital assets is through crypto trading.

Crypto trading refers to the act of speculating on the price movements of cryptocurrencies. It’s similar to forex trading, but instead of fiat currencies, you’re buying and selling digital assets.

Two primary ways to trade cryptos:

Cryptocurrency exchanges operate similarly to traditional stock exchanges. You buy and sell assets (coins and tokens) through an online platform.

CFD brokers: It allow you to trade cryptocurrencies without owning them. It is done by entering a contract for difference (CFD) with the broker. With this type of trade, you speculate on whether the price of the asset will go up or down, and you make money based on your prediction.

Both approaches have their own set of risks and rewards, so it is important to understand both before deploying the right on.

How to buy cryptocurrency?

Here are the steps to buy cryptocurrency:

Step 1 Choose a cryptocurrency exchange or broker: There are many options available for buying cryptocurrencies, including centralized exchanges like Binance or Coinbase, and decentralized exchanges like Uniswap. You can also consider using a broker like Inveslo.

Step 2 Create an account: Once you have chosen your exchange or broker, you will need to create an account by providing your personal information, including your name, address, email, and phone number. Some exchanges may also require you to provide a government-issued ID for verification purposes.

Step 3 Add payment method: To buy cryptocurrency, you will need to add a payment method to your account, such as a bank account or credit card. The process for adding a payment method will vary depending on the exchange or broker you have chosen.

Step 4 Buy cryptocurrency: Once you have added your payment method, you can buy cryptocurrency by placing an order on the exchange or broker's platform. You need to mention the quantity of cryptocurrencies you wish to acquire as well as the price you are ready to pay.

Step 5 Store your cryptocurrency: After your purchase is complete, your cryptocurrency will be stored in your exchange or broker's wallet. It is important to keep in mind that centralized exchanges are vulnerable to hacking, so you may want to consider transferring your cryptocurrency to a personal wallet for safekeeping.

How to sell cryptocurrency?

Here are the steps to sell cryptocurrency:

Step 1 Choose a cryptocurrency exchange or broker: You will need to choose a platform that allows you to sell the specific cryptocurrency you want to sell. Some popular exchanges include Binance, Coinbase, and Inveslo.

Step 2 Create an account: If you don't already have an account with the exchange or broker, you will need to create one by providing your personal information and adding a payment method.

Step 3 Transfer your cryptocurrency to the exchange or broker: Before you can sell your cryptocurrency, you will need to transfer it from your personal wallet to the exchange or broker's platform. This can typically be done through a deposit function on the platform.

Step 4 Place a sell order: Once your cryptocurrency is in your exchange or broker's wallet, you can place a sell order by specifying the amount of cryptocurrency you want to sell and the price you are willing to sell it for.

Step 5 Wait for the order to be filled: Your sell order will be matched with a buyer when someone is willing to buy your cryptocurrency at the price you have set. Once the order is filled, the exchange or broker will transfer the funds from the sale to your payment method.

Note: As with buying cryptocurrency, it's important to do your own research and understand the risks involved when selling cryptocurrency, as the market can be highly volatile. Additionally, different exchanges may have different fees and processes for selling cryptocurrency, so be sure to familiarise yourself with the platform you are using before making a sale.

How to invest in cryptocurrency with Inveslo

Step 1 - Open an account with Inveslo: Registration is simple and straightforward. All you need to do is provide some basic information and go through the process and upload a copy of your ID and utility bills for verification.

Step 2 - Fund your account: Once you have registered, it's time to fund your account. Inveslo requires a minimum deposit of $100, and you can choose from a range of payment options, including bank transfers, credit/debit cards, and e-wallets.

Step 3 - Choose your cryptocurrency: With your account funded, it is time to choose the cryptocurrency you want to invest in. The platform supports a range of digital assets, including Bitcoin, Ethereum, Litecoin, and more. 

Step 4 - Invest in cryptocurrency: Once you have selected your cryptocurrency, you are ready to invest. Download MetaTrader and trade in your favourite cryptocurrency. 

Suggested read: How Ethereum blockchain works

Different Types of Crypto Trading Strategies

There are many different types of crypto trading strategies that can be deployed to make a profit. Some well-known strategies are day trading, swing trading, and scalp trading.

Day trading: It is a strategy where you buy and sell cryptocurrencies within the same day. It is a risky strategy because prices can fluctuate significantly within a single day. However, if you can correctly predict the market, you can make a lot of money from day trading.

Swing trading: It is a strategy where you hold onto cryptocurrencies for a period before selling them. This strategy is less risky than day trading because you are not trying to time the market. Instead, you are holding onto the crypto for a period and selling when the price is higher than when you bought it.

Scalp trading: It is a strategy where you take advantage of small price fluctuations in the market. It is a very risky strategy because prices can change rapidly, and you need to have experience to be successful at it. Scalp traders typically use technical analysis to find good entry and exit points in the market.

Pros and Cons of Crypto Trading

Overall, crypto trading can be a great way to make money if you’re careful and do your research. 

Conclusion

In conclusion, buying and selling cryptocurrency can be a great way to invest in the digital asset market, but it's important to do so with caution and a full understanding of the risks involved. By following the steps outlined in this article, you can learn how to buy and sell cryptocurrency on platforms like Inveslo, a popular broker for crypto trading.

However, it's important to keep in mind that the cryptocurrency market can be highly volatile and that investing in digital assets is not suitable for everyone. Before investing, it's essential to do your own research, understand the pros and cons of crypto trading, and consider seeking professional advice if you're unsure about anything.

Inveslo offers a secure and user-friendly platform for investing in cryptocurrency, but it's important to consider all your options and choose the platform that's right for you. Whether you're a seasoned crypto trader or a beginner, by taking the time to educate yourself and make informed decisions, you can safely and effectively invest in the exciting world of cryptocurrency.