Cryptocurrency trading for Beginners
When it comes to crypto, traders usually have two incentives. They are either j. Kt go make profit in USD or to gather Bitcoin. The average crypto bull market makes it super easy to up the USD value of your portfolio. Where things may slow down a bit is if you have Bitcoin in your portfolio. What traders can do to track the value of Bitcoins in other portfolios is to trade altcoins against Bitcoin on exchanges. Coinbase Pro is a good place to start.
As a beginner, it’s important to know that actively trading your crypto puts you at risk of losing these gems in the market. It’s that straightforward. And this is a result of the volatility in cryptocurrency prices. Hence, the preference of many crypto investors of HODLing to trading.
Here are 5 clear steps to trading cryptocurrency as a beginner.
Step 1: Make an account for cryptocurrency brokerage
This should be your first step if you don’t already have an account with a brokerage. Some of the best out there are eToro, Coinbase, and Gemini. These brokerages not only offer users a rich variety of altcoins to choose from, but they also have a simple user interface.
Provide your crypto brokerage with all your details for personal identification such as email address, address, date of birth, social security number and you’re good to go.
Step 2: Fund your account
After, signing up with a brokerage, the next step is to connect your bank account to your crypto account. A lot of crypto brokerages provide bank funding with wire transfers and debit cards. The wire transfer is typically your cheapest option when funding your account.
Step 3: Choose crypto to invest in
It is not uncommon for active cryptocurrency traders to apportion a larger chunk of their capital to Ethereum and Bitcoin. Compared to smaller altcoins, Bitcoin and Ethereum are more predictable. This means that trading with technical indicators is a lot easier.
However, a lot of crypto traders still pump their funds into smaller altcoins. Generally, though, small mid-market cap cryptos are quite risky compared to large-market cap cryptos. They provide higher upside potential. What makes these small altcoins juicy for risk-tolerant investors is that small altcoins tend to rise by 1000%.
Step 4: Pick a strategy
In trading cryptocurrency trading, there are a lot of trading indicators to choose from. Most traders tend to consider a lot of factors before buying and selling crypto. For newbies like you, taking a crypto trading course will be helpful.
One popular choice if you want to learn to invest in foreign currency plus other things like crypto, is Asia Forex Mentor. You could check out their reviews after reading this and sign up if you like what they have to offer.
If you’re already an experienced trader, there’s a high chance you already have a workable strategy to trade stocks with. Strategies for stock trading are a common method of trading cryptocurrencies. The Elliot Wave Theory is a popular one, and it focuses on the psychology behind market sentiment. This is what makes it the perfect fit for speculative assets like cryptocurrencies.
Step 5: Store your gems
Actively trading cryptocurrency would require you to store your funds on exchanges you have access to. The best bet is having a cryptocurrency wallet to store your crypto if you are buying crypto to hold for a short or long period.
Your crypto wallet can be both a hardware wallet or a software wallet. The two types of wallets are secure and offer top-notch security. How is this possible? It’s a simple method. When you hold cryptocurrency in a wallet, they are stored on a physical device, offline.
One of such wallets is the well-known brand, Ledger. Ledger is an incredible hardware wallet brand that many investors bank with for storing their crypto assets.
Besides Ledger, there are still several free-to-use software wallets that can give you all the security you need. These wallets are available on Android, iOS, and Google Chrome.