The capitalization of the cryptocurrency market grows every year, and today it amounts to hundreds of billions of dollars. Not only professional investors are interested in the industry, but also ordinary people. Today, everyone can buy cryptocurrency, but to make a stable income from it, it is necessary to learn the basics of trading. On the Internet, you can learn what cryptocurrency to buy now or how to get the maximum profit when investing in cryptocurrency, but theoretical knowledge will never replace practice.
Choice of Exchange
Before you start trading, you need to decide where to do it. The answer to this question is quite simple – on a cryptocurrency exchange. There are a lot of options on the market, so you should choose wisely, giving preference to the most well-known exchanges. Otherwise, there is a great risk that your digital assets will fall into oblivion together with an unreliable resource. Among the exchanges that can be trusted are Binance, Bitfinex, Coinbase etc.
By the way, the best option for monitoring exchanges is www.bestchange.com.
Once you have the resources and the basic tools to trade, you can begin to study the market as a whole, as well as the tokens that interest you. Understanding the specifics of cryptocurrencies and the factors affecting the rate is one of the main factors for success. Experienced traders always keep up with industry news, developer news, and major world events that have global implications. One of the most useful sites for studying the financial aspect of cryptocurrencies is CoinMarketCap. On it you can see the market capitalization, supply volume, daily turnover and rate charts of all known cryptocurrencies. These indicators will definitely come in handy when choosing an investment target.
Where and How to Learn Trading?
In fact, there are not so many variants as we would like to think. One way or another, you will have to spend a lot of time searching for information and trading by trial and error. The most effective ways to learn today are:
- School or crypto-trading courses.
- Working as a trader’s assistant.
- Independent education.
The course option is excellent for gaining experience. As a rule, courses provide systematized information and basic tools for successful trading. Lessons are often conducted online in a webinar mode, which saves time.
In terms of developing practical skills, there is no better way than to work under the guidance of an experienced trader. Finding someone willing to take a newcomer under their wing can be difficult, but the game is worth the candle. If the previous two methods are not suitable for one reason or another, you can learn on your own. With regular study of theory and its application in practice, it is possible to learn how to trade without anyone’s help.
Nine Key Steps to Get Started
Here are a few rules to follow. It is important to understand that this material is not a recommendation to trade, it is created for reference and information purposes. The information gathered here can be useful if it is tested by trial and error.
Study the Selected Project
Usefulness is the first thing to highlight for yourself. Financial instruments such as loans, investments in home sale or rental companies, alternative energy technology, and so on are popular today. Without utility, a project will eventually cease to be of interest to the community – that’s the first thing. The second is that such projects will be more susceptible to artificial influence from interested parties, such as speculation.
Choosing a Wallet
The primary tool for storing, receiving, and transferring your digital assets. You can store coins in browser-based, hardware-based, software-based, or paper-based wallets. Hardware (physical devices) are the most reliable because they do not have a constant connection to the Internet, but software wallets still win in terms of convenience.
Cryptocurrency Ratings Cannot Be Ignored
There are top altcoins, they have already gained their audience. But on such coins, it is advisable to stick to a holding strategy and small investments.
Rely on Useful Resources
Add the sites to bookmarks on your computer to keep track of asset values. For example, CoinMarketCap, CoinGecko.
What varieties exist, how each particular one works. It is necessary to find the least “painful” form of trade. At the start, as a rule, turn to trading on stop-limits.
Study the Instruments of a Particular Cryptocurrency Exchange
Thoroughly and carefully. As a rule, they provide tables of price dynamics, post stacks that show all current trades, longs and shorts.
Decide on a Strategy
What type of trading will you do, what will be your strategy? Will it be quick trades, lots of assets, small investments, trading? Or investments “for the future”, measured trading. Anyway, again – longs and shorts – let’s go deeper into this topic. At the start, and in general, given the riskiness of cryptocurrency trading, it is better to act cautiously, to test small amounts.
Learn the Basics of Technical Analysis
It is recommended to cover yourself with books for a while. Murphy’s book is a good fit. It explains in simple and clear language what the regularities are, how to track trends and how to evaluate statistical data. Ideal for beginners.
Choose a Cryptocurrency Wallet
Cryptocurrency wallet – be sure to find out what they are and which one is right for you before you open one. It is recommended, for example, to keep the bulk of your assets in a cold wallet and use a hot wallet for transactions.
Free Cryptocurrency Giveaways
If you are considering airdrops as a way to dive into the world of cryptocurrency, cryptocurrency, or rather cryptoproject, is probably just around the corner. Be warned. Medium recommends not rushing into investing, and after getting a freebie, take some time to study more closely. Often after such marketing promotions, the price rises, but after some time stabilizes and falls.
When entering the field of crypto-trading, you should understand how different it is from trading conventional currencies and securities. The cryptocurrency market is still quite young, so you need to keep a close eye on it and be able to adapt quickly to changes.