Did you know that the lifetime return on investment (ROI) for Ethereum is 700,000%? Investors who bought $1,000 of ether at its launch are sitting with a roughly $7,000,000 investment today! That makes it one of history’s greatest medium- to long-term investments.
Cryptocurrency values rise and fall relatively quickly when compared to other investment types, which isn’t a bad thing. Buying and selling crypto in short-term trades is one of the best ways to increase your wealth over time and win big on massive price spikes.
If you’re asking yourself “then how do I buy and sell crypto and also win big?”, just keep reading this handy guide.
Sign Up for an Exchange or Trading App
If you want to know how to buy crypto, it starts by signing up with a trading app or a crypto exchange. There are thousands of options available in 2022.
To find one that works for you, you need to think about how and why you want to be investing in crypto. For instance, if you want to earn by buying and selling crypto in response to the small daily shifts in value, then you’ll want a crypto exchange with access to lots of coins that charges little or no trade commissions.
That way, you keep most or all of the money you make on the little trades.
However, if you want to make long-term investments, you’ll want to focus on an exchange that offers stablecoins, crypto ETFs, and possibly an option to earn interest through crypto lending. In both cases, however, you should avoid exchanges with bad reputations or possible scams.
Good investing is backed by a ton of research, and crypto investing is no exception. You should start your research by learning about all the different crypto and types of crypto available. Look at their value timeline, who started them, who bought them, and how they reacted during the various crypto crashes.
Looking at who is buying a coin is very important. Understanding the behavior of other investors is the key to making it in a speculative market like the crypto exchange. Also, look at what economists and other experts are saying about cryptocurrencies.
Fund, Trade, and Store
When you have an idea of where and how you want to invest, you can transfer cash from your bank account to the crypto broker through a debit card payment or wire transfer. Some crypto brokers and banks even allow you to fund with credit.
Once there’s value in your brokerage wallet, you can buy and sell crypto in accordance with the plan that you should have made in steps one and two. You may need to purchase a crypto wallet if you’re going to hold coins like Bitcoin and Ethereum for long periods of time.
How Do I Buy and Sell Crypto – Author’s Notes
As a crypto investor myself, how do I buy and sell crypto?
When I started, I did a lot of research on different coin types and exchanges so that I could trade tiny bits of Bitcoin for fractions of Ethereum at a time (or vice versa), depending on which one had a higher value at the time. I opened my account with an exchange that doesn’t penalize its users for short-term buying and selling.
Successful crypto trading for me has been about reacting well to the market, including converting my crypto back into cash when the first signs of a big crash were revealed. I developed this skill on the foundations of my financial education. If you want to learn about finances, check out the finance section on our blog.