Cryptocurrency Trading for Beginners
Abhigyan Singh 26th May 2022
Being inspired by the success and enrichment that crypto trading brings, novice crypto users are eager to try it too. So in this article, we will propose a few cryptocurrency trading for beginners.
Cryptocurrency trading has become really popular due to the crypto market's high volatility. How does cryptocurrency trading work? - the core of trading is buying assets at a lower rate and selling them at a higher price. However, trading is not that easy activity, as it could seem to be, and a novice trader should keep in mind important rules for trading.
Tips for crypto trading
- Pick one crypto trading strategy and follow it.
- Pick the assets to invest attentively. Don’t follow hype coins; better assess the project critically, find out how serious it is and what stands behind it, who its founders are, how many users it has, and what issues the project solves. Empty and promising the Earth projects do not seem to be trustworthy at all. So pick those serious and comprehensive projects.
- Diversify your investment portfolio. It is not recommended to invest only in one crypto asset. Pick a few coins and diversify your investments among them.
- Do not panic when the rate goes down, and plan your long-term investments. Often novice traders start panicking when the asset's price drops and sell them. It is wrong. Better keep your coins for the long term and wait for the price to soar.
- Don’t be tempted to invest extra money, don't borrow money to invest. Separate an exact amount you can afford to invest every month.
- You may set up automated trading, that is, when you configure your crypto exchange account to buy a specific cryptocurrency for a particular amount every month, no matter how its rate changes. For example, every month, you buy Bitcoin for $100.
- Pick a credible crypto exchange.
These were some tips for crypto trading. Now let’s talk about how to pick the best crypto trading platform.
First of all, pay attention to the platform’s rating on the Coinmarketcap resource. The daily trade volume indicates how many clients the exchange has every day; if it is low - that means the exchange is not very credible.
Also, pay attention to the fees. Every cryptocurrency trading platform sets its own fees policy.
Pay attention to the number of crypto pairs and the option to buy digital assets with fiat currencies and through bank cards.