May 30, 2024

How To Start Crypto Trading

Before trading any of the available trading instruments, a trader must have comprehensive knowledge about that asset. Lack of knowledge about the asset can lead to making a mistake which can eventually result in a loss. The same applies to trading cryptocurrencies. If one is willing to plunge into the crypto pool, then he must be aware of the factors related to its price fluctuations, the procedure of purchasing any cryptocurrency, and what is a blockchain. When you are mentally satisfied that you have enough knowledge about cryptocurrencies, only then you should practically jump into the market.

The prices of some cryptocurrencies are very high so you may not be able to afford a complete coin. In this situation, Bitcoin brokers and cryptocurrency exchanges come handy. Good Bitcoin brokers and cryptocurrency exchanges allow buying parts of a coin and also offer CFDs (contracts for deposits). Trading cryptocurrency without a broker or an exchange is not possible for beginner-level traders. In addition, experts also recommend using Bitcoin brokers and cryptocurrency exchanges because they provide multiple advantages.

Advantages of Using Brokers and Exchanges

If you trade without a broker or an exchange, you would need to buy a wallet to store your digital currencies, which are expensive. But if you register with some good Bitcoin broker or a cryptocurrency exchange then you will be provided a wallet free of cost.

Secondly, these platforms provide a demo trading opportunity as well which looks the same as actual trading. This feature enables newbies to experience the same-like situation to get a better understanding.

Other features of brokers and exchanges include tight spreads and slippage costs, larger liquidity pools, multiple numbers of offered cryptocurrencies, and the provision of updated market news.

Famous Bitcoin Brokers and Exchanges

  • Binance
  • Coinbase
  • KuCoin
  • FinuTrade
  • FTX
  • LiteForex
  • TradeATF
  • Bitforex
  • Gemini
  • Tredexo

Reach To Authentic News

Cryptocurrencies are a volatile trading instrument which means that their prices shuffle every hour. The ups and downs in their prices are caused by various factors so a trader needs to monitor the market closely. So it is advised to every trader that you study every related factor from authentic websites and cross-check your information as well if possible. The best way to do so is by following major websites and blogs in the industry.

In crypto trading, there is no room for error. If you try to speculate things based on false news then you might end up losing your investment or a part of it.

Famous Cryptocurrencies That Can Be Traded

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Ripple
  • Litecoin
  • Cordano
  • Dogecoin
  • Tether
  • Monero
  • Binance Coin
  • Coinye

Trading Strategies

Once you have acquired sufficient knowledge about crypto trading, cryptocurrencies, and crypto trading platforms (Bitcoin broker and cryptocurrency exchanges), you can begin your trading. But to keep you on the safe side, I advise you to follow the following trading strategies.

  • Diversify Your Investments

All the cryptocurrencies don’t behave in the same way to external factors like government interference, economic crises, and malware attempts. So it is highly advised that you scramble your investment in various cryptocurrencies. In this way, if you face a loss in one cryptocurrency, it would be covered on the same day as other cryptocurrencies.

  • Avoid Fear Of Missing Out

Fear of missing out is related to day trading only. It is a situation when traders react too quickly in given circumstances due to fear of losing the opportunity or sometimes due to the fear of an expected loss. You should try to stop making trades if you feel pressurized in this type of situation.

  • Learn Trading Methods

There are no limits to knowledge and education. Even expert traders admit that they still focus on learning new methods because the technology is frequently updated. So a trader must follow an approach that is a mixture of both technical and fundamental analysis. It means that you keep an eye on elements that influence cryptocurrencies and watch their history.

  • HODLing and Hedging

HODLing and Hedging are two key strategies used by traders in making profitable trades. HODLing means to hold an asset for a specific time while Hedging is employed to offset losses by taking an opposite position.

Conclusion

To sum up the article, as a futures trader you should build your knowledge first and then start practical trading. While making trades, don’t hesitate to take risks but also avoid the fear of missing out. If you follow the above-mentioned trading strategies then you have a prosperous trading career in the future.