How To Start Trading Crypto For Beginners

How To Start Trading Crypto For Beginners - mrlaboratory.info

 Cryptocurrencies, for better or worse, are here to stay. The allure of big gains and the allure of zero fees is proving too strong for people to resist. However, crypto trading is still a bit of a black box to most people. 

 

How To Start Trading Crypto For Beginners - mrlaboratory.info

There's no clear path from knowing nothing about the topic to becoming a successful trader—there are so many factors involved in an individual's success in crypto trading that it seems impossible to pin down one factor as the deciding factor.

Define a Crypto Trader

A crypto trader is someone who trades cryptocurrencies. These are people who buy and sell cryptocurrencies like bitcoin and ethereum in order to make a profit. When you hear the word "trader," you might think of the stock market, but it applies to crypto traders as well. 

 

In fact, many stock traders have made the switch to crypto trading because it's not just a way to earn money, but also a new way to invest in your future. In the stock market, you're investing in companies with an expectation of price growth, generally over the course of months or years. 


However, with crypto trading, you're not investing in companies at all; with cryptocurrency, you're investing in the future of currency itself. 

Factors To Consider in Crypto Trading

When you're considering whether crypto trading is for you, it's important to think about the wide array of factors that could affect your decision. Each person has different priorities and goals, so there's no one-size-fits-all approach to determining if crypto is something you want to invest in.

The following are some things to think about before you jump into the world of crypto.

Risks

If you're one of the people who are attracted to the extremely high returns of cryptocurrencies, then it's important that you be aware of the risks involved in trading crypto. You should also be wary of being blinded by the lure of quick profit and not do your due diligence when picking an exchange or digital wallet where you will hold your coins.

Exchange

One of the first things you'll need to do is choose which kind of exchange you'd like to use. Look for an exchange that caters a broad range of cryptocurrencies such as Bitcoin and Ethereum, Cardano, LUNA, as well as trading pairs such as SWEAT/USDT and LUNAUSDT and others.

  • A centralized exchange, like KuCoin, that holds your money and charges small fees (but gives you access to a wider range of coins)
  • A decentralized exchange like EtherDelta that doesn't hold your money and charges tiny fees (but only works with Ethereum based tokens)
  • A peer-to-peer marketplace like LocalBitcoins that lets buyers and sellers trade with one another directly, but requires an in person meeting (and you need to either have or get some bitcoin yourself)

 

Volatility and Stability

 It's important to know what you're getting into before you make a move, so research the coins you're considering. If their prices are too volatile, they may not be worth the risk.

Backed by a real-world object

There are plenty of cryptocurrencies out there that will never even see the inside of a bank, but that doesn't mean that they aren't valuable—in many cases, they can still be backed by assets like gold or silver

Wallet

You'll also need to decide if you're going to store your coins on the exchange itself or transfer them into a wallet from the exchange. Exchanges aren't as secure as wallets. But if you transfer them into a wallet and lose your private key or forget the password, you won't have access to your coins at all. 

Things To Keep in Mind in Crypto Trading

The cryptocurrency market is a crowded one, with thousands of possible trades out there to be made. But if you're new to the field, the sheer amount of information can be overwhelming and make it difficult for you to find your footing. 

Set a Timeframe

First and foremost, make sure you're aware of the time period in which you'll be capable of making trades. You have to be comfortable with what moves the market takes over time and how much time is needed for the price to reach your desired target amount. If you're new to trading, it might take some practice before you're able to accurately gauge how long a certain cryptocurrency will take to hit its target.

Start Small, Make Profitable Trades

It's important that you don't get over-ambitious from the start. Many novice traders make the mistake of starting with too much money because they don't want to risk losing any of their funds. They end up getting discouraged and give up if they lose too much in one go. 

Start small, but plan out a series of trade targets that you think are reasonable. This way, each target can act as motivation for continuing on with your strategy even if you miss one or two targets along the process.

Understand The Process

When you want to become a crypto trader, the first step you should take is learning as much as possible about how cryptocurrencies work. The best place to start is by reading as much as you can online, particularly on blogs and news sites that feature commentary from industry insiders and professionals. The more basic concepts you understand—such as how blockchain technology works—the more prepared you'll be to start trading.

Take your time

With the cryptocurrency market still in its relative infancy, there's no telling what could happen in the coming years. It's important not to jump into the market with unrealistic expectations about short-term profits and long-term investments. As Warren Buffet famously said, "Be fearful when others are greedy and greedy when others are fearful."





PostTutupComment