Cryptocurrency Trading 101: Exchanges
You’ve probably have heard of Bitcoin, Ethereum & other cryptocurrencies as of late. You’ve spent some time reading and learning about blockchain technology and cryptocurrencies, and are interested in buying some to “try out” crypto.
This blog post is a quick guide on how to get started and acquire your first cryptocurrency.
Join a Exchange that accepts Fiat /Bank Deposit
So you’ve heard about Bitcoin and cryptocurrencies, and now you’re interested in buying some. The quickest way to acquiring cryptocurrency will be purchasing it off an exchange. If you’re just starting off, you’ll want to sign up and join a cryptocurrency exchange that allow fiat deposits, which essentially allows bank withdrawals/deposits to your exchange account.
The list below covers some popular cryptocurrency exchanges that accept fiat/ bank deposits.
The main downside of fiat-friendly cryptocurrency exchanges is that the commission and trading fees are generally higher than cryptocurrency-only exchanges. This is generally due to the extra costs associated with processing and managing fiat-currency
Now that we’ve touched upon fiat-friendly cryptocurrency exchanges, let’s take a look at exchanges that only accept cryptocurrencies. Generally speaking, obtaining the regulatory permissions and licenses to handle government-issued currencies is an expensive and time-consuming process. In an effort to provide individuals immediate entry into the crypto space, many exchanges have decided to bypass legal restrictions by only accepting cryptocurrency deposits and withdrawals. While the conversion of cryptocurrency to cash may become more of a hassle, the benefit to trading on crypto-only exchanges include: lower trading and commission fees, increased liquidity & volume, and increased trading pair options.
Some popular cryptocurrency-only exchanges include:
Once you’ve signed up for multiple exchange accounts, you’ll be able to explore the wider range of exchange features and offerings. You can also research and explore additional cryptocurrency exchanges from all around the globe. Some good resources for exchange research and reviews include CoinMarketCap, CoinLib, CoinCodex, and WorldCoinIndex.
As a relatively new asset class that is facing a lot of scrutiny from governments and regulatory bodies, cryptocurrencies are still considered risky. We recommend that you do conduct your own research and due diligence when purchasing and transferring cryptocurrency. Here are some insightful articles on Forbes and Investopedia which explain in more detail the risks of cryptocurrencies.
Shrimpy: Cryptocurrency for Beginners
Now that you’ve signed up for some exchanges and purchased some cryptocurrency, what’s next? It’s likely that the appeal of cryptocurrencies is what caught your eye in the first place, so let’s help you get a start on that! Since you’re probably not a financial professional or a day trader, you’re likely looking for a simple and easy way to manage your cryptocurrency portfolio.
Shrimpy is the all-in-one solution for cryptocurrency portfolio management. With Shrimpy, you can view your entire cryptocurrency portfolio in a single unified dashboard! What sets us apart is our unique Rebalancing Tool. According to Investopedia, “Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original desired level of asset allocation.”
Read more about portfolio rebalancing here.
With Shrimpy, all you have to do is select the desired time interval to rebalance your portfolio, and you’re set. By setting a rebalance period, you instruct Shrimpy to automatically makes trades on your behalf to follow your desired portfolio strategy. Shrimpy currently provides hourly, daily, weekly, and monthly rebalancing as a free feature for ALL our users.
Disclaimer: The information shared on the Shrimpy Blog is for informational purposes only. It is not intended to be investment advice. It is recommended to consult a licensed professional for investment advice.