Kavan Choksi's Guide to Crypto Trading: How to Trade Cryptocurrencies

Like trading stocks and other financial activities, trading cryptocurrency can be complex, involving various components and necessitating specific knowledge. Now, suppose you want to start trading cryptocurrencies. In that case, Kavan Choksi believes it is best to understand the risks involved and the laws that may apply, depending on your jurisdiction, so that you can make decisions accordingly.

 

Enroll in a cryptocurrency exchange.

First, you will need to open an account with a crypto exchange unless you already own cryptocurrency. This step requires providing your personal identifying information, just as you would with a stock brokerage. When you create an account, you must provide your address, date of birth, Social Security number, and email address, among other Know Your Customer (KYC) requirements.

 

Put money into your account.

After signing up with a crypto brokerage, you need to connect your bank account, so you can use bank deposits via debit cards and wire transfers to transact, as most cryptocurrency exchanges accept these payment methods. However, Kavan Choksi recommends wire transfers since they are typically the least expensive way to fund your account, and they are available on Coinbase and Gemini.

 

Choose a cryptocurrency.

Although most cryptocurrency traders invest in Bitcoin and Ether, small mid-market cap cryptos have more upside potential than large-market cap cryptos, despite being riskier. Because cryptocurrencies, like Bitcoin, move more predictably than smaller altcoins, Kavan Choksi suggests trading with technical indicators.

 

Begin trading

If you are looking for a trading strategy, Kavan Choksi suggests trying automatic crypto trading with the software. Crypto trading bots use a process that provides you with the highest possible returns based on your investment goals. Additionally,  you can make money quickly, keep your coins, or diversify your portfolio in a conservative, neutral, or aggressive manner with automated crypto trading. You could even experiment with actively trading cryptocurrency on some sites while automating trading on others.