Crypto trading is a lucrative form of earning decent cash. And if you’re one of the lucky few who got into Bitcoin trading during its early stages, then you’ll have higher returns by this time. This kind of potential earnings has attracted many people to venture into crypto trading.
Now, more innovations and updates have surrounded cryptocurrencies which may be a little bit challenging to start.
However, it’s not yet too late to dive into crypto trading. With the right tools, knowledge, and mindset, you can start opening your trading account and find good trades.
In this guide, I will show you how you can start crypto trading and some pointers you need to know about the market.
Is Cryptocurrency too Volatile?
Since it is still an emerging market, price fluctuations can be dire. It has to be considered as well that there’s a lack of regulatory oversight and the underlying technology is still being developed. This makes cryptocurrency unpredictable and challenging.
Plus, the price changes can be swayed by the sentiments of the people, and of course, the media has its part to play since it can influence public opinion.
Despite volatility, the number of new traders is growing. They look for information on the internet to find what they need to know about crypto trading and how to navigate the market. Since extreme price fluctuations are inevitable, the best way to handle it is to work with it.
Traders see volatility as something positive. High risk, high rewards – it’s only a matter of managing these risks to mitigate potential losses.
Before starting to trade cryptocurrencies, here are some points you need to know about the cryptocurrency market:
As mentioned earlier, the crypto market is volatile. It’s a lot riskier to dive into trading without doing some basic research about blockchain technology, cryptocurrencies, and the latest news. You may experience more losses and make trades based only on guesses.
There’s a wealth of information on the Internet to help expand your crypto knowledge. You can go to Reddit, Quora, Youtube, Twitter, and internet forums. This way, you’ll have an idea of the risks involved and the basic terms to help you get started.
Invest Only What You Can Afford to Lose
Often, beginning traders get a little too excited about the prospects of earning. As a result, they tend to take out loans or put most of their savings in trading which is a bad practice. Remember that the cryptocurrency prices fluctuate greatly over short periods.
No matter how experienced you are with trading, there are still some unavoidable risks and losses so it’s best to stay on the safe side and invest only the amount you’re comfortable with.
Check a Crypto Exchange’s Reputation
Scams are always present in the financial industry. Precautionary measures are needed to be taken to as much as possible avoid falling for scams.
With the rise of cryptocurrency, the number of fraudulent platforms has also risen. That is why it is important to check a platform or software’s credibility. It will ensure that you are not putting your money at risk on dubious crypto exchanges.
One of the things you should check is if their payment methods are secure. It gives you an assurance that your funds and coins are not prone to hacking.
4 Steps to Start Crypto Trading
Now that you know these pointers, it’s time to know these easy steps to start trading:
Choose an Exchange Platform
There are many reputable crypto exchange platforms that people can choose from. Some of these include Coinbase, Binance, Bitfinex, etc. Once you’ve checked their websites and other relevant information about the platforms, then you can go ahead and create an account.
Get a Cryptocurrency Wallet
Just like having a physical wallet for fiat currency, you will need a crypto wallet as well to store your cryptocurrency. This where you will put your encrypted passwords that represent your coins.
Search for a Cryptocurrency
Now that you have a wallet, it’s time to find the cryptocurrency you want to make a trade. If you’re now eyeing a coin, it’s best to study the background and news about it so that you’ll know if it’s worth pursuing.
Place the Trade
Once you have thoroughly researched a coin and you are confident about it, then you can go ahead and place the trade. Remember that you don’t need to buy a whole coin. You can purchase a fraction of it.
Still Confused? Use Crypto Trading Tools
Finding and analyzing a coin does take some time to learn. I highly recommend taking an online class or finding educational materials on the things you need to look for in a good trade.
There are crypto trading tools out there that can help beginners efficiently get a head start in crypto trading such as CryptoCruisers. This tool helps its members understand market insights and trends that could affect the value of cryptocurrencies.
It has an online dashboard that shows indicators of a potentially favorable trade in a simple and straightforward manner. There’s no need to analyze complicated charts or scan media sites to find the latest cryptocurrency news.
Members need to check what the indicators say and they can decide whether to buy or sell in less time. You can also make trades using this crypto trading solution too!
Crypto trading can be a good source of income especially when risks are mitigated. That is why beginner traders should not be intimidated by the volatility in the market for as long as they take precautionary measures before trading.