Cryptocurrency also called crypto is a form of currency that has digital or virtual existence and uses cryptography to secure the transactions. The currency can be stored for an extended period to grow its value, which may differ as per the fluctuation in the trade market. Whereas the buying & selling of these currencies earn a profit is termed “cryptocurrency trading.” Being a safe and authorized method of trading, crypto trading has increased very steeply in the last few years.
Before you start investing in crypto you either need assistance from experts in crypto trading or train yourself well by undertaking a certified course to become familiar with the trading concepts and further gain expertise in the same.
The recommendation here would be to invest in learning about cryptocurrency trading by making good use of the available online education source and resources on crypto trading.
In this article, shared are some tips on how to start crypto trading as a beginner that will help in planning the right strategy for crypto trading:
Learn about the type of cryptocurrencies in the market
There are thousands of different crypto coins available to trade within the market. You should have a detailed understanding of the cryptocurrency you choose to trade by closely analyzing its behaviour over time. To do so your first need to have knowledge about the crypto coins and related important facts like:
- Cryptocurrencies are decentralized.
- The trading coins are secured (encrypted) with specialized computer code known as cryptography.
- The cryptocurrencies are stored in digital wallets and you should have knowledge about how to manage & trade coins.
The basics should be clear and for this, you must opt for certified courses as a beginner so that in the long run they add value and not just act as a piece of information.
Create a cryptocurrency brokerage account
Once you are done with the basic research and understanding of what cryptocurrency is all about? And the important elements associated with it, it’s time to create a cryptocurrency brokerage account.
To start trading you need a crypto brokerage account that is a common platform where the crypto seller and buyers meet.
The simple step to creating a cryptocurrency brokerage account is:
- Visit the crypto broker’s website
- Enter your personal information & documents asked to support your identity
- Once the account is verified, add funds to the wallet for purchasing the crypto coins.
Discover Trading Methods
The crypto market has a lot of changes going on, for which you need a certain level of understanding of trading methods/strategies depending upon return expectations. The “Elliott Wave Theory” is one of the trading methods that work on the principle of market psychology and market sentiments. Other basic beginner trading methods include:
- Day Trading
- Scalping
- Range Reading
- Dollar-Cost Averaging
Build a Portfolio
Once your account is verified and you have selected the trading strategy, it’s time to build your portfolio. Make sure you have multiple crypto coins as it minimizes the volatility risks. As a beginner, you should focus more on buying stable coins bitcoin.
Manage Investment Risks
Minimizing the market risk is important and for that, you need an in-depth understanding of the rate of return and the risk involved. Your portfolio plays an important role here so do maintain diversity in the coins to avoid volatility.
Final Thought
You need proper understanding and in-depth knowledge to start trading in crypto on your own. It is always suggested to start with a certified course as beginners to keep the learning graph on track. To gain more insights and knowledge about crypto trading, bitcoin, blockchain or other digital technologies, you can browse the list of courses and resources available online at Taking Bigger Steps website.
