Interest in cryptocurrency is growing despite the fact that the market is experiencing a temporary decline. Even at this stage, it is clear that sooner or later there will be a new upsurge. That’s why crypto trading has been and remains relevant. You are about to learn how to get into crypto trading.
How much to start with
Many exchanges offer the opportunity to trade with a demo account, but it is nothing more than a simulator or training. Trading with real money shows the real component of trading. You can start trading crypto assets with a small amount of $50 or $100. If it goes well, you can gradually increase that amount, the analyst said.
How to safely store cryptocurrency
One of the most important tasks of an investor is to ensure safe storage of their investments. Web wallets are the most popular among beginners and active traders. They are usually offered on the websites of major cryptocurrency exchanges, can store any currency purchased, and help you quickly sell it or transfer it to other users.
What trading strategy to choose
For beginners, the best approach is the swing trading, when transactions are made for a period of one to several days, and sometimes weeks, for one or two assets. The price movement for such a period is smoother than the intraday movement. The beginning trader will react less to small fluctuations and will be nervous.
The strategy for beginners is simple — buy and forget for a while. The main thing is not to watch what happens on the market every half an hour, because the volatility on the news can drive you crazy.
Profit can be low at first, but you should learn to manage risks first and then use non-standard strategies. In order to get more profit you can take a crypto loan with CoinRabbit. Thanks to this site, you can leave Bitcoin or another asset you don’t want to sell as collateral and take a loan in another currency you can use for trading. That way, you’ll make a profitable exchange and at the same time keep the asset you want.
What mistakes should not be made
The main mistake is a trader’s pursuit of maximum profits. You shouldn’t chase super profits, because it is always associated with high risk. Those who get rich on cryptocurrency quickly are, to a large extent, just lucky. There are hundreds of people who lost their capitals per one who got rich.
The second gross mistake is not to take into account bad scenarios. You need to consider the worst possible outcome of market events and plan your actions accordingly. If you buy bitcoin at $50,000, you should realize what will happen to your position when it falls $5,000 overnight, when it’s worth topping up or reinvesting. A lot of people don’t do that because they don’t believe it can happen to them or simply don’t know how.
The third mistake is not sticking to the principle of diversification and investing the entire amount in one asset. This mistake is made by traders who already have some experience in trading.
If a trader is lucky for a few months, they begin to think that this will always be the case, they get emotional euphoria, which prevents a sober assessment of the situation. You have to keep a cool head.
Check the details
Don’t get seduced by the incredibly great offers while selecting a cryptocurrency and an exchange. Crypto is undoubtedly a unique universe, but there’s no free cheese. Find the catch if they make extraordinary profit promises.
Characteristic signs of dubious crypto projects:
- The members of the project team have never before been mentioned in cryptocurrency news. In certain situations, you can even find the faces of well-known actors on the project team with completely different names; this, however, is a very exceptional precedent.
- The creators of the cryptocurrency promise a guaranteed profit. Most likely, it is a pyramid scheme.
- The project code source on GitHub hardly ever receives updates. This means that either the project as such does not exist at all, or no one is working on it.
If any of this applies to the cryptocurrency you were considering for investment, it is better to choose another, more reliable target.
Conclusion
Everyone can do trading, the main thing is to use the right amount of money, to be able to analyze the situation and cope with emotions. Don’t forget that you can get even more profits thanks to crypto loans.