Traders, no matter if you are talking about Forex of cryptocurrencies, are kind of superheroes. They make decisions fast, buy and sell on a short-term basis, live their best life (supposedly) a community with its own rules. The question is – how to get started in cryptocurrency trading? What is the magic trick you need to perform to become a trader? ChangeNOW, a leading non-custodial cryptocurrency exchange, is going to attempt to answer your questions about trading and break down the basics of what is needed to start a career in trading yourself.
What is cryptocurrency trading?
Traders take advantage of whatever is happening on the market. There is surely great potential in trading, but you need to know how to get started in cryptocurrency trading – that means you need to learn to make serious decisions. Cryptocurrencies are highly volatile, so seeing the changes in the market and the ability to analyse them are essential to the crypto traders. Besides, traders should have a good understanding of cryptocurrencies as such – the technology, fundamentals and mechanisms of crypto work are the very basis on which the investor’s knowledge is standing on.
So, before starting your trading journey, get familiar with the terms and concepts.
After doing the research, proceed to the next step – choosing a good cryptocurrency trading platform.
Best cryptocurrency trading platforms:
You have learned your crypto ABCs and are now ready to make the first investment. Starting to build your trader portfolio requires entering the marketplace and gaining access to the place from which you can buy cryptocurrencies.
There are many exchange platforms that you can use, but the final choice should be based on the following factors:
- the range of cryptocurrencies on offer
- ability to buy with fiat
First of all, check the variety of cryptocurrencies that a platform has to offer. You probably know that ChangeNOW has over 150 cryptos that our clients can purchase. If you are a beginner in trading, most probably you will need to get your first cryptocurrency with fiat (traditional money, like Dollars and Euros) – so choose a platform that allows users to buy with fiat. Of course, the service that you will utilise also needs to be reliable. It is better to choose non-custodial trading platforms, as they do not store your personal information and do not hold your funds. There are many free cryptocurrency trading platforms that you can find on the Internet, but the trading novices need to verify the information first and only start working with reliable, trustworthy services. After you have chosen the service, it is time to start thinking about the coins.
Cryptocurrency Trading Strategies
There are more than a thousand crypto coins on the market with some of them not being available for fiat purchases. Due to this, at first, you need to choose a base currency. You can get popular coins like Bitcoin, Litecoin or Ethereum and later exchange them for other promising cryptos.
What you want to look for is market capitalisation – it is an important factor to look at when trading. Starting to buy currencies just because they are currently cheap is a bad decision! The market valuation is what actually matters in the process. You can always check market capitalisations on cryptocurrency price websites as well as in ChangeNOW’s coin price preditions.
The main principle of crypto trading is “buy low, sell high”. Actually, this rule applies to any kind of trading. Buy coins that have a good potential to grow and wait for the peak moment – it is important to get the right time to sell.
Things to Look For When Starting Trading
There are several factors one needs to consider when becoming a trader:
- Secure wallet – you can check the list of our trusted services for more information on reliable cryptocurrency wallets
- Professional cryptocurrency trading platform – choose a service with the best rates and a wide array of currencies.
- Learn your trading basics – you can even choose an online trading academy for cryptocurrency to get more information on the topic
- Do not invest what you can’t afford to lose – this is the first rule!
That’s about it! Hope you’ve gained some knowledge on how to get started in cryptocurrency trading from this neat article! Remember to be vigilant, DYOR, and know when to stop – that way, you will be a great trader in no time!