Are you Interested in the world of cryptocurrency and want to start trading? If you’re not sure what cryptocurrency trading is and how it works, this is the guide for you. Let’s break down the basics to help you get started.
To begin with, trading in any capacity, especially with cryptocurrency, involves a lot of risks. Investments can be volatile at the best of times. With cryptocurrency, even the most popular currencies, such as Bitcoin, regularly suffer from tremendous volatility.
Before you make any moves, make sure you have done your research and are happy with the decisions you are about to make and invest only as much as you can afford to lose.
Where do you need to start?
Before you start trading, you first need to make sure you have the following:
A cryptocurrency wallet (you can choose from paper, mobile, software or hardware wallets)
Cryptocurrency trading is a 24-hour market. This is different from traditional stock markets, which do not trade for 24 hours. Beginners may prefer to trade cryptocurrency stocks. One of the largest Bitcoin (BTC) stocks is GBTC, which is a trust. Trading shares means that users do not have to trade crypto directly, although it does happen at a price.
Equity trading works through premiums, which, in short, means that Bitcoin itself is cheaper than its shares. Nevertheless, this is a way for beginners to help them become familiar with trading.
The market is incredibly volatile. The consequences of volatility should not be underestimated. The markets are not specific. Much trading is done through speculation.
The basics of cryptocurrencies are taken care of. Now let’s get down to the more practical part – crypto trading for beginners.
How do I start Cryptocurrency trading?
- Make a cryptocurrency brokerage account. – If you don’t have a cryptocurrency yet, you need to create an account with a cryptocurrency brokerage company. Coinbase, Gemini and eToro are some of the best cryptocurrency brokerage companies on the market.
- Fund your account. Once you have registered with a crypto brokerage company, you need to connect your bank account. Most cryptocurrency brokerage companies offer bank funding through debit cards and bank transfers.
- Choose a cryptocurrency to invest in. The most active cryptocurrency traders invest most of their capital in bitcoin and Ethereum. These cryptocurrencies move more predictably than smaller altcoins, so trading with technical indicators can be easier
- Choose a strategy. There are many trading indicators to choose from, and most traders consider many factors when buying and selling cryptocurrency.
If you are new to investing, you might consider buying Invest Diva Power Course. Invest Diva Power Course teaches you how to start, and grow your investment portfolio even if you’re lack finance and don’t have a lot of time.
- Consider automated cryptocurrency trading. When you are looking for a cryptocurrency trading strategy, you can try automated cryptocurrency trading with a platform like Coinrule. Trading bots implement a strategy that is designed to give you the best results given your investment goals.
However, is it safe to trade?
Is It Safe to Trade Cryptocurrency?
Cryptocurrency stored on an exchange or in a wallet is not FDIC-insured like money in a bank. Make sure you trade and store your cryptocurrencies on a platform that offers strong security measures, including storing a significant portion of your holdings in your cold storage and two-factor user authentication.
For the best protection against online fraud, many experts recommend cold storage with a standalone device not connected to the Internet, like a USB drive. But even cold storage comes with risks, for example, you can completely lose access to your investments if you forget your password.
Now, let’s figure out can crypto make you rich?
How Do You Successfully Trade Crypto?
Cryptocurrency trading cannot rely only on chance. It is necessary to have a clear strategy to effectively open positions and earn income in the future.
1. Trading By Trend
The most challenging moment for novice investors is the identification of the trend, for this, you need to at least determine the key local lows and highs
In an uptrend, every next point must be higher than the previous one, while in a downtrend the local highs and lows must be lower than the previous ones. Then we can safely talk about the presence of any trend.
2. Buying In Equal Parts
The easiest way to start investing in cryptocurrency is a long-term accumulation of digital coins with regular purchases in equal instalments. you can invest a fixed amount in bitcoin every month.
The advantage of this strategy is that you can buy the asset regardless of the market situation. If the price of the cryptocurrency begins to fall, it is possible to average the entry point with further purchases at a lower value. This strategy works for those investors who have a long-term vision for the growth of the asset and also see a big upside later.
3. Buy and Sell At Extreme Prices
When trading an unstable financial instrument, such as cryptocurrency, you need to lock in profits regularly. If profits are too large, sell half or close the position.
4. Make a Clear Trading Plan
It is important to have a trading plan, especially for cryptocurrencies. The plan should help you decide when to buy or sell. Follow the plan and “play by your rules”.
5. Diversify Your Investments
Never invest all your money in one financial instrument. Buy cryptocurrency, but allocate money to investments in other asset classes as well.
Did you know that you can buy, sell or trade digital currencies while on the go? All you need is one of the best cryptocurrency apps.
Which app is best for cryptocurrency?
how much should I invest in cryptocurrency as a beginner?
In theory, you only need a few dollars to invest in cryptocurrency. On most crypto exchanges, for example, the minimum transaction amount might be $5 or $10. On other cryptocurrency trading apps, the minimum amount can be even lower.
How much does it cost to join Bitcoin?
Minimum account $2 – Earn $5 in bitcoins promo for getting started on Coinbase. Minimum account $0 – $20 BTC promo for new members after trading $100 or more for 30 days.
Affordable cryptocurrencies with great potential for the future can bring investors great returns. The best cryptocurrencies attract investors looking to diversify their portfolios. But, what crypto to obtain today?
Which Crypto to Buy Now?
But here are the best cryptocurrencies you can buy and invest in now without even knowing anything about crypto-trends:
- Binance Coin
- Axie Infinity
The cryptocurrency market does not tolerate a game of chance. Traders compete here: retail and large traders. Some take their winnings, others leave the market empty-handed, and sometimes with debts. That’s why trading digital assets must be taken seriously, you have to calculate every step and think about possible negative consequences.
A beginner must first decide on a strategy: investing or trading. Allocate an amount that he does not regret losing. Then, buy cryptocurrencies and transfer them to the exchange or cold wallet.
You can practice in advance taking Invest Diva Power Course before making any investment.
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