How To Get Started With Cryptocurrency Trading: Ultimate Beginner’s Pack
Maybe the reason why you've gotten this far searching is that you've heard so much about this new investment platform called cryptocurrency trading. You might be looking for something that will push you to join the community and grow your existing assets. Although the profit gain sounds promising, the work you have to put in is quite complicated. Now, you're going to learn how to get with cryptocurrency trading slowly but surely.
It is no surprise that cryptocurrency emerges to be a competent match with foreign exchanges and the stock market. With its decentralized nature, investors can yield more profit than other platforms out there. There is no central institution or government backing this system, so there's more room to grow without the need for taxes and additional fees. However, deciding to be part of the crypto world means you should know the platform better.
There are four steps to follow before you can settle in the new environment. It includes choosing an exchange account, picking your crypto wallet, educating yourself with the trade, and learning more about risks and productivity.
The central concept of cryptocurrency is the buying and selling of digital assets called crypto coins based on the price movement of its market. All transactions get recorded in blockchain technology, securing your account through a pool of computer networks. You can speculate and predict prices as well, using futures.
Apart from its decentralized characteristic, it is also a highly volatile industry. The rapid changes in crypto coins' prices require you to keep a close eye on active trading. Since it exists virtually, all forms of strategies are online as well. That said, it is crucial that you choose the right set of tools to guide you through the process.
Choosing an exchange account
If you want to kick off an investment venture in cryptocurrency trading, you will need to register in an exchange platform. There's an endless list of exchanges out there, and it may be confusing just to choose one. It is not enough to pick an exchange because it has unbelievable discounts and add-on features upon registering. Remember, cryptocurrency is prone to hacking and scams merely because it takes place in a digital space.
You must be very attentive to the details and the history of an exchange brand. Ensure that it has maintained a reputable image through time, without a bothering issue on their track record. Research its founders and check if they're in the news. Sometimes, people can be tricky with smart names, but none of them became industry leaders. Liquidity and market capitalization are also essential to monitor. You can do that by reading credible articles and news.
When you find an ideal fit for the criteria mentioned, you may proceed to the registration. It may take a while to get verified, but you can fund the account shortly after the approval.
Picking your crypto wallet
The need for a cryptocurrency wallet comes from the requirement to transfer funds between exchanges and safe storage of your digital assets. It gives you the convenience to move your coins to and from every trading transaction while keeping them secured.
Crypto wallets can be accessed through an app, which you can open through your gadgets. The online version of crypto storage is called a hot wallet. Most cryptocurrency coins created their version for storage. For example, Bitcoin has a Bitcoin Core Wallet, and Litecoin has Litecoin-QT.
If you wish to transact multiple cryptocurrencies, there are also wallets made for that purpose. That includes Exodus, Coinomi, and Jaxx Wallet. You should give the same amount of scrutiny in picking a crypto wallet as in choosing an exchange. It is never wise to give those hackers a chance to get into your account because you decided on a compromising platform.
Educating yourself with the trade
Part of your responsibilities as a cryptocurrency trader is to develop a monitoring habit of relevant information that may affect price movements. Knowing that the market is volatile, one crucial detail can change the game, and you should prepare ahead.
Before investing in a crypto coin, there are specific considerations to look after: market capitalization, trade volume, liquidity, news exposure, and significant events. A convenient website tool like Coinmarketcap can help you find any coin's market cap, trade volume, and liquidity. It comes with historical charts, too, so you can figure out how it's performing for the previous months or years. A liquid cryptocurrency venture means you can execute your trades smoothly.
For news and other updates, some reliable sources are Coindesk and The Merkle. You can explore further and do your independent research. That way, you can anticipate apparent changes and lessen the risk of losing your investment portfolio.
Learning more about risks and productivity
Risk management and quick decision-making are skills you have to hone along with the instruments that guide you. The cryptocurrency market waits for no one, so being a minute late on a strategy may cause you a potentially high profit.
You can also ask for help and avail the services of an automated index calculator like Cryptoindex 100. It guarantees to lend a hand in reducing volatility risks and accounts for the possible costs that will help you save in your trading transactions. This tool will give you more room for you to be productive on other matters like enhancing your portfolio and networking with other traders. Discover more about cryptocurrency trading here!
Now that you know how to get started with cryptocurrency trading, you can apply the tips and start making money in the industry. It is necessary to learn by this point that profits don’t go to millions overnight. You have to put in an immense amount of time and effort, and it will pay you back double.
UPDATED April 4, 2021
By: Lance Richards
The traditional and established foreign exchange and stock markets have found a newcomer in the trade: cryptocurrency.
UPDATED April 1, 2021
By: Owen Landry
It is every invested trader to get one thing and one thing only: profit! Whichever platform they opt to put their assets to, their ultimate goal is the get as many returns as possible
UPDATED April 1, 2021
By: Hunter Shultz
It’s easy to get caught up with what’s up and coming in the market. However, when it involves your finances and investments, you need to earn enough knowledge and experience.