The development of blockchain technology and its recent advancements for global use have seen the entrance of newbies into the cryptocurrency world.

Experience and verifiable opinion samples on crypto trading platforms have shown that the number of aspiring traders is even more than those at the trading level already.

"How do I become a cryptocurrency buyer and seller?" is a question that many people ask. Before answering this, though, it is first crucial to define what cryptocurrency (crypto) is.

What is cryptocurrency?

A cryptocurrency is a decentralized digital currency stored in a digital wallet system operated by the owner and is used as a store of value or medium of exchange for goods and services.

A cryptocurrency has no central authority regulating it and is not stored in physical form (like paper and coin money). It is stored in the form of a digital ledger using blockchain technology.

A 2021 Statista report observed that there are more than 6000 types of digital currencies in operation today. This is not only a massive boost from what used to be a handful of them as of 2013 but also a testimony to the assumption that at least a coin is launched daily.

Examples of the most renowned coins in the cryptocurrency market today include Bitcoin, Ethereum, Binance BNB, and Ripple XRP.

How to become a cryptocurrency trader

As with other ventures, trading cryptocurrency involves in-depth study. Hence the 7 steps below to give you a direction on how to study to become a cryptocurrency trader.

Understand the nature of the bitcoin market

First, your focus should be on studying the decentralization policy, the market forces, as well as the volatility of the market.

Identify the best performing currencies (coins) to trade in

Next is to identify the best performing coins in the market in terms of value and demand.

The essence of this is to help you identify the real coins from the fake, and those with long-term prospects from those with short-term prospects.

Study the operation of the selected coins

Operation of a coin involves trend analysis and an objective forecast of coin performance to know the best time to buy and sell.

Get the right platform to buy and sell

Knowing the right platform to buy and sell your coins is important so as to avoid online scams and fake purchases.

Open your digital wallet on your chosen platform

Next is to create your digital wallet on the platform you have chosen. The essence of the wallet is to deposit and store your coins after buying.

Secure your wallet

Securing your wallet ensures that your coins have added protection. You can secure your wallet with the use of a strong password, or by activating the double authentication option.

Hold until the price peaks

Holding on to your coins until the price goes up is crucial because this is where your profit will be determined and gotten.