Crypto trading may sound fascinating but the crypto market can be quite a challenge for a newbie to understand. Unlike the regular stock market, the crypto market never sleeps; neither does it conform to traditional financial theories and norms. So, if you plan to start trading cryptocurrencies this year, there are some easy guidelines that can make the process easier for you:
- To begin with, you need to first take a decision on how you wish to trade cryptos; either you can speculate on crypto prices or buy cryptos hoping that their prices will go up. CFDs are contracts whereby you speculate on market prices instead of buying the coins directly. Alternatively, you can buy cryptos via an exchange. By doing this, you own the coins and you can hold onto these in your digital wallet in the hope of making profits when the prices go up.
- The crypto market does no function in the same way as do regular financial markets. So, understanding how it works is a prerequisite for engaging in crypto trading. The crypto market is decentralized and operates vis-à-vis a peer-to-peer system where transactions are verified by miners and then added onto a blockchain or public ledger.
- To start trading cryptos, you will need to create an account and deposit funds into this account to make trades. You can make high profits when you choose to trade online with legit trading apps like Bitcoin Superstar. Make sure to read this Bitcoin Superstar review here https://kryptoszene.de/bitcoin-robot/bitcoin-superstar/.
- You need a trading plan because the crypto market is known for being highly volatile. Without proper risk management tools in place and a proper methodology for exiting and entering trades, you cannot hope to survive. In making a trading plan, you should decide whether to use fundamental or technical analysis. Regardless of the method you use, you need to stay updated with the latest crypto news that could influence prices.
- When you have a trading strategy in place you need to choose a crypto trading platform that you can trust. Platforms like eToro, Coinbase, and Kraken are the leading crypto trading sites that offer easy-to-use interfaces and an impressive selection of coins and tokens to choose from. For creating an account on these exchanges you will need to submit your personal ID details.
- Your next task is to opt for a crypto that you wish to trade or invest in. Most newcomers prefer to stick to established coins like the Bitcoin as their prices movements are found to be more predictable than the relatively lesser-known altcoins.
- Once you have decided on the crypto you wish to trade, whether it is Bitcoin, Litecoin, or Ethereum, you need to decide on your trade size position and select “buy” or “sell” to open long or short positions. You are entitled to add limits or take profit measures to minimize your risks.
- Finally, for those who wish to trade cryptos actively, it is important to store funds securely; you can either store them on the exchange when you plan on trading regularly or use a software or hardware wallet for holding onto the coins for the long term. Hardware wallets are comparatively more secure because your funds will be stored on offline physical devices that cannot be hacked.