The trading market is big, prosperous, and exciting—but it can also be a little confusing for beginner traders. If you fall under this bracket and want to understand the market more clearly, you’ve come to the right place. Strap in tight, grab a pen, and let’s dive into the details.
What is trading?
Trading is the process of buying assets with the aim of selling them for a profit.
You can buy a huge variety of assets—especially in the digital age. Popular examples include:
- Stocks
- Cryptocurrencies
- Bonds
Cryptocurrencies are especially popular.
For example, by now, you’ve probably heard of Bitcoin. Bitcoin is seen as one of the best cryptocurrencies on the market that you can trade, as its value can easily go up at any time. If you want to learn more visit okx.com for bitcoin live price index. When you look at the Bitcoin price index, you’ll get to see a visual graph that provides an insight into the market activity surrounding Bitcoin.
What platforms can you use for trading?
Nowadays, everybody is trading online —from Wall Street professionals to everyday people.
Naturally, the online platforms you use for trading will be dependent on the assets that you want to trade.
For example, if you want to trade cryptocurrency, you can use KuCoin, Binance, Kraken, and various other websites. For trading stocks, you can use Webull, Fidelity, or Merrill Edge.
Whichever platform you choose, you’ll be asked to create an account and register some relevant details. From there, you will then be required to make a deposit. Usually, there’s no minimum deposit. For example, if you want to trade stocks on Webull, you don’t need to deposit any funds at all. However, some platforms require a minimum deposit (e.g. $5) before you can start trading.
Also, it’s very important to choose a secure password for your trading platform. On top of this, make sure to secure your account with two-factor authentication so that it makes it near impossible for anyone to get into your account and steal your funds.
Is trading profitable?
Trading is profitable—but only when you make it so. The key is to strike markets at the right moment. In a nutshell, it’s all about timing. For example, if you buy stocks in an up-and-coming company that suddenly becomes popular, you’ll be able to sell those stocks for a profit.
Back in the day, if you’d invested in Amazon stocks before it blew up in popularity, you’d be very rich. According to CNBC, $1,000 worth of Amazon stocks in 2009 would be worth $23,600 in 2019. Now, they’d be worth even more.
Remember, you won’t make huge profits right away (unless you’re very lucky). Instead, it’s all about patience and diversifying your portfolio. Over time, you’ll start to see profits emerging when you make the right moves. Keep tabs on market trends and mainstream news so that you can do this. Plus, if you want extra help, there are plenty of trading courses online that you can enroll on for free to grow and supplement your knowledge.