Since the launch of Bitcoin in 2009, we’ve seen the concept of cryptocurrencies and digital currencies take off quickly. Till date, more than a few thousand digital currencies have come into existence, all aimed at the single objective of decentralizing monetary transactions.
The best thing about cryptocurrencies is that they are built around the concept of decentralization, which makes cryptocurrencies popular and accessible in all parts of the world. Be it any country or state, you can access and trade cryptocurrencies, making them popular amongst the public all across the globe.
Here is the ultimate guide to help you trade cryptocurrency in Zimbabwe.
While all the hype and popularity that surrounds cryptocurrencies might intrigue you to dive straight into investing in a cryptocurrency of your choice, it might not be the best idea to do so without conducting a thorough preliminary research.
There are a few elements that you might need to consider before trading cryptocurrency. Initially, you’re supposed to understand how cryptocurrencies and the blockchain technology works. You don’t need a very in-depth understanding but some knowledge should be sought before diving into crypto trading.
Choose a cryptocurrency
One of the most important factors that determines the success of your investment is your choice of cryptocurrency. Currently, there are thousands of cryptocurrencies and even more digital currencies that would entice you to pour your investment into them.
As someone who wants to trade cryptocurrency in Zimbabwe, what you need to do is shortlist around 20-30 cryptocurrencies from the entire variety that is present out there.
You can use attributes such as price, market capitalization, 24-hour percentage change, 7-day percentage change, 24-hour traded volume, and circulating supply, to shortlist cryptocurrencies that seem the most appealing.
Once you’re done with shortlisting, you can conduct a more in-depth research into past trends and future predictions regarding the price of your shortlisted currencies and choose the one that has the most promising outlook.
Purchase your First Cryptocurrency
In order to trade cryptocurrency in Zimbabwe, you will need to know about how to purchase a cryptocurrency. All the cryptocurrency transactions are facilitated by exchange services that allow you to purchase crypto and trade it.
To begin with, you’ll need to find a cryptocurrency exchange that allows you to exchange fiat currency (Zimbabwe Dollar or USD) with a cryptocurrency. Given that a lot of cryptocurrencies can only be purchased using bitcoin, it would be a good idea to first trade fiat currency for Bitcoin and then use that Bitcoin to purchase other cryptocurrencies.
If bitcoin is the cryptocurrency of your choice, you’re good to go by just using the Fiat-to-BTC exchange. However, if you plan on purchasing other cryptocurrencies, also known as altcoins, you’ll have to find an exchange that offers the cryptocurrency of your choice and then trade your BTC for that altcoin.
Some of the popular cryptocurrency exchanges in Zimbabwe include LocalBitcoins, Kraken, and OKCoin. You can browse through the websites of these exchanges and opt for the one that suits your requirements.
Trade your Cryptocurrency
Once you’ve purchased the cryptocurrency of your choice, you can go ahead and start trading it. Cryptocurrencies usually go through cycles of slump and rise. You should observe the patterns and trends of your crypto in order to determine the right time to pour your investment in.
If you are a beginner, it would be wise to utilize auto trading platforms such as Bitcoin Prime that allow you to trade news-driven crypto volatility profitably and make the most out of your investments. Of course, when you think it’s time, you can diversify into more cryptocurrencies and formulate a portfolio that has a balance between the risks and the returns.