1. How can I earn money from crypto?
Crypto is a digital currency that uses encryption techniques to regulate the generation of units of currency and verify transfer of funds. Cryptocurrency exchanges serve as marketplaces where buyers and sellers meet to trade fiat currencies (such as USD) for cryptocurrencies. As of February 2018, over 1,500 different types of altcoins have been developed.
2. What do I need to start trading crypto?
You’ll need a wallet to store your cryptocurrency. There are many options out there: desktop wallets (like Exodus or Jaxx), mobile wallets like Mycelium or Coinomi, online wallets like Coinbase or Blockchain.info, hardware wallets like Ledger or Trezor, etc. To get started, visit our guide about how to buy bitcoin.
3. Where do I find trading opportunities?
There are plenty of ways to make money trading crypto. You can use an exchange to automatically execute trades. If you want to trade manually, check out our guide about how to trade cryptos.
4. Can I invest my savings in cryptos?
Yes! In fact, some people choose to put their entire retirement savings into cryptos. However, keep in mind that investing in crypto doesn’t offer any guarantees. Volatility means that even if you’re right, you could lose all your money. Be sure to read our full disclaimer before choosing to invest.
5. Are there legal requirements for trading cryptos?
Yes, there are. The US Securities Exchange Commission considers cryptocurrencies securities, meaning that they have to follow the same regulations as traditional financial instruments. Trading them without complying with these rules can lead to heavy fines and even jail time.
6. Do I need a broker account to trade cryptos?
No, you don’t. Most brokers only require a bank account number and routing information. Once you’ve got that, you can deposit and withdraw funds to and from your account directly using the blockchain.
7. Is there a minimum balance requirement to open a brokerage account?
No, there isn’t a minimum balance requirement. But you should know that high-frequency traders (HFTs) are able to place orders at extremely low prices just milliseconds after each other. This results in them being able to move the price of a coin to their advantage.