A Retiree's Guide to Crypto Trading

Retirement sometimes leaves you with a lot of free time that you can use to pursue a hobby, a business idea, or whatever excites you. Many people use this time to do something productive that can create an additional source of income during retirement.

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While most income generating ideas require you to venture out of your home, you may not want to keep driving to an office . And there's no need to take that horrible journey if you don't want to: there are plenty of things you can do from the comfort of your home, like trading crypto.

Yes, you read that right. Crypto trading is not something only millennials or GenZs pursue. A retiree with some crypto knowledge can easily trade this type of asset like someone in their teens (even better, actually). All you have to do is follow a few basic steps, and you're done! You can trade cryptos within hours.

Why trade crypto rather than stocks?

Before discussing the steps to start trading cryptos, it is natural to ask why one would want to trade cryptos instead of stocks or other securities.

There are many reasons to do this, but let's start with the obvious: many crypto assets have generated significantly more returns over the past five and ten years than most other securities you can trade.< /p>

By simply holding these cryptographic "tokens", thousands of people around the world have made their fortunes over the past two years. Tokens are units in which a cryptocurrency is transacted, and for convenience you might want to think of them as coins (yes!)

There are other advantages to trading cryptos rather than stocks, such as being able to trade 24/7, whereas with stocks you are limited to a few hours on weekdays. Plus, the crypto market never takes a vacation, so you can get your money in or out whenever you want.

Now that we know the advantages of trading crypto over other assets, let's explore how a retiree can start their crypto trading journey.

First step: start by reading

I can't stress this enough. If you are a retiree who is totally unaware of the world of crypto and how it works, you need to read about it first. Several websites, most of them free, will help you understand the basics.

The basics start with knowing that cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies are also decentralized, meaning they are not subject to government or financial institution control.

Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, we have seen the launch of many cryptocurrencies, some of which are now trading at many times their value. origin.

Step Two: Research What You're Trading

Cryptocurrencies, or simply "crypto", have become an umbrella term for any blockchain-based digital asset or security.

People often interchange the terms crypto and coins, as coins are the most followed cryptocurrencies. However, nowadays you will find several cryptocurrencies or tokens that are not used for transactions or as a store of value, but to provide some other utility to their users.

Decide what type of crypto you are going to trade

Therefore, as part of your trading journey, you need to decide what type of crypto asset you want to trade and select which specific asset of that class to start with.

Making these choices is the key to financial stability and success. For example, you wouldn't randomly apply for a balance transfer credit card without first researching the available options and associated benefits, would you? The same goes for choosing an investment vehicle like crypto.

Where do you find your search?

If you are new to trading popular cryptocurrencies, you can research which one to choose by visiting free websites like coinmarketcap.com. The homepage of this website shows you several cryptos ranked according to their market capitalization (i.e. the total dollar value of all tokens of that crypto in circulation). Additionally, Coinmarketcap.com also shows you the volume or total dollar amount of trades in that cryptocurrency in the last 24 hours.

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