Ultimately, the number one question that most people have is how do I ‘start off’ crypto trading? This article will provide you with a step-by-step process to guide you through the start of your cryptocurrency journey. So let’s get started!
So Why Start Trading Crypto?
Trading in cryptocurrency opens up many opportunities and avenues to earn money. You can make a living out of it and many have done so successfully. It’s exciting to be part of this crypto journey where the sky’s the limit.
It’s also a very exciting time for traders as we see both bull runs and bear runs taking place. For me, I like seeing both such cycles because it creates some very good opportunities to cash in on.
What we are seeing right now is the latter i.e. bear run. The market has been constantly going downhill for quite some time now so this is a good opportunity to get in and start trading without requiring any special knowledge or skills of analysis.
Of course, you still need basic knowledge because crypto trading is not that easy. To help you through, here’s a step-by-step process that can be used by newbies as well as experienced traders:
1. Register with an Exchange or Broker and Fund it
There are so many exchanges out there that offer their services in crypto trading, but at the same time, they provide different features and services. So it is important to be clear about the kind of exchange you want to register with because each one has its own pros and cons.
Get a brokerage account if you are looking for professionalism in your trade execution; otherwise, go with an exchange. A brokerage gives you access to more coins/tokens on the trading platform and also provides you with a place to store your coins.
2. Set up Trading Strategies
Once you have funded your account, set up a trading strategy for yourself. This strategy could be used for different coins and tokens, but it should be a strategy that gives you good returns in the long term.
What we mean by this is to set up a plan for trading with The-NewsSpy.io and stick to it. Do not change your strategy too often because that will only make you lose money. Plus, remember that crypto trading requires strong nerves so if your strategy does not give you profit, stick to it in the long run.
3. Start Using The Trading Strategy
Now that you have set up a trading strategy, start using it and get used to it. You can use historical data to see how profitable your strategy is and if there are any loopholes in its working. Keep using it until you feel confident enough to use it during live trading.
4. Educate Yourself on the Altcoins
After you have your strategy in place, educate yourself on the altcoins or the particular coins/tokens that you wish to trade.
Tip: Make sure you only read up on the information that is provided by authentic sources like official websites, blogs, social media channels, etc. Try to stay away from investing in crypto that might be a scam because there are so many of them around and they’ll turn out to be a loss.
5. Start Trading with Small Amounts
Now that you’re confident enough to start trading, it’s time to use your strategy in live trading mode. You can allocate a small percentage of your total capital for this and after all, is said and done, make sure you transfer the remaining amount back into your wallet.
Know A Few Facts About Trading Crypto
The popularity of the crypto market is growing exponentially. The crypto industry is relatively new and it has achieved great heights within a small period. Owing to the perks it offers, more and more people are now interested in crypto trading and are looking forward to obtaining maximum benefits out of it. The crypto market has created a range of opportunities for traders of all kinds so that they can easily multiply their profits.
However, before you get started with trading in this industry, you should know a few things that will come handy in the long run. Let us know a few things that will help traders sustain the crypto market.
You can trade in the crypto market in two different routes
You can trade in cryptocurrencies either by buying these digital coins from an exchange marketplace, or by speculating the prices of the cryptos using CFDs.
Buying cryptocurrency from the marketplace
You may make a choice of buying cryptocurrencies from registered marketplaces. It means that the traders have ownership over a part of digital currencies. For this, you will have to create an account in the crypto market and open a wallet that allows crypto trading. There are a lot of steps involved in the entire process and there are chances that your profile would go in the waiting list before you get an account registered.
Use CFDs for Trading
CFD is known as a contract in which you agree to get the difference in the price of crypto exchanged, from when you choose to open an account till the time you close it. You will have to speculate the current price of crypto in the market, instead of opting for ownership. When you choose a long position, you will earn when the price of crypto increases. However, when traders opt for short positions, the opposite becomes true.
How Does the Crypto Market Operate?
The crypto market operates in a different way as compared to the other financial markets operating. Hence, it becomes crucial for the investors to learn about the trading norms followed in the market and also comprehend the working of the crypto industry.
The crypto market is a decentralised network of digital currencies, which means that the market operates through the system of transaction checks that take place, in a peer-to-peer manner. Whenever crypto is traded, i.e bought or sold, the transactions gets added to the ledge of blockchain maintained.
This ledger records the data of every transaction held, through a process that is known as mining. Cryptos are popularly unstable in nature, therefore, it becomes critical to know more about the market, and how it moves. Without proper understanding of the market, you may not make sufficient profits.
You can either buy goods and services in exchange for cryptos or can also choose to trade them to generate profits. These digital coins can be treated the same way as casino chips or arcade tokens are. However, to buy goods or services, you will have to pay real money in exchange for cryptos.
We hope this article was helpful to you and gave you an idea on how to start crypto trading. Just remember that it’s very important to take your time and research before investing in any kind of coin/token because it minimizes the chances of heavy losses which so many of us are experiencing right now.