Trade cryptocurrency. You’ve heard of Bitcoin, but you aren’t really sure what it is or how it can be traded. Don’t worry cryptocurrency trading can seem extremely confusing at first, but with the right knowledge and tools, it’s actually relatively easy to make money doing it. Just follow these steps and you’ll be an expert in no time!
What is cryptocurrency
Cryptocurrency is a digital medium of exchange. It’s produced by many people running software on their computers. Much like how Bitcoin is used online, it can be used in real life as well. Cryptocurrency is decentralized, which means there isn’t one single source that determines its value, and it’s not linked to or controlled by any banks or governments.
Which type of crypto trader are you?
There are many ways to go about trading in crypto. The most important thing is to be honest with yourself and knows that it takes time. If you think you can become rich overnight, you will probably lose everything in less than 48 hours.
Finding a good exchange
Many exchanges have multiple options, so you can choose depending on your specific trading needs. The most popular exchange is Coinbase, which not only has an easy-to-use interface but also supports fiat currencies (like USD) in addition to cryptocurrencies. You can start by familiarizing yourself with Coinbase’s exchange platform before diving into other options.
Understanding charts and indicators
No matter which coin you decide to trade, it’s crucial that you understand how it works under the hood. If you don’t understand technical analysis and indicators, then maybe trading isn’t for you. While indicators can be confusing at first glance, they are extremely useful in telling your story. Try investigating popular indicators such as RSI or macd between other information on online forums like r/cryptocurrency. (See more: A Guide To Fundamental Analysis For Cryptocurrencies )
Learning from the best
If you’re serious about making money in cryptocurrency, you need to get really good at reading charts and candlesticks. When you know how to read these charts, you’ll be able to spot them at every turn. You’ll understand how things will progress from here and how different trades can affect your crypto portfolio. If reading charts is already familiar territory for you, congratulations!
That skill will serve you well in your crypto trading journey. If not, no worries! This guide will help get you there. Let’s start with an introduction to what candles are and what they tell us about market movements.
Get great trading tips from experts
There are few things in life more intimidating than trading for beginners. There are plenty of people willing to take your money, but it’s not often you can find someone who will teach you how to get started. One way around that problem is using social media, Reddit threads, and other sites where traders hang out. No one will hold your hand exactly, but there are generally open-minded community members ready and willing to help out newbies getting their feet wet.
Here’s a quick rundown of some great places for new traders
Keeping things simple with FOMO (fear of missing out)
The truth is, FOMO is always lurking. If you’re new to trading or investing, don’t make decisions based on your emotions. This is just as true when you’re looking at cryptocurrencies. You can set a sell order at $400, and your emotions might tell you that it will never go back up again, so I should just sell now. It’s hard not to feel FOMO sometimes when watching an asset lose value (especially in real-time), but don’t get emotional about it. Instead of making rash decisions, take some time and remind yourself of why you got into crypto in the first place.
Stay invested when things go south
There are two main types of investment strategies: long-term and short-term. The former requires you to pick one or two coins that you believe will be long-term winners, with all your money invested in them; anything else would be considered trading. You need to choose these cryptocurrencies carefully and make sure you stick to them for an extended period of time at least six months if not longer.
The latter is similar but with shorter investment timeframes. You can choose one or more cryptocurrencies, but instead of using all your money in just one coin, say 10%, you spread it around several different ones (20% each), waiting for any five to ten, in particular, to be selected as most promising.