People either learn how to mine or how to trade cryptocurrency to make a profit. Trading is a more elaborate method that will require more than you renting or buying a mining machine. It involves a lot of knowledge and a certain amount of luck. We’ll focus on the first quality. Whether it’s Binance or Coinbase, Bitcoin or Ripple, you can learn how to trade cryptocurrency for profit in a short time.
We’ll look at the basic terms, facts, and rules, as well as where to get practice and learn how to trade cryptocurrency.
Where to Learn How to Trade Cryptocurrency: What Sources You Will Need to Succeed
First of all, let’s see what you will need to learn trading BTC, ETH, or another crypto in the market:
• Online courses
Find a free or paid online course on how to trade cryptocurrency in the USA or another country. Usually, the USA methods work worldwide, but if you need a version in your language, look for the relevant options.
• Crash courses
If you’re short in time and need to know how to learn to trade cryptocurrency asap, look for crash courses. There are some on YouTube if you perceive visual information the best. You can also find lessons for beginners with fast learning options.
• Following successful traders
If you have some knowledge already, find a trader who knows exactly how to trade cryptocurrency successfully and make money. Ask them for guidance, follow every step, and things will work out for you.
Don’t forget to update your knowledge every time you see an opportunity for it. Useful articles with up-to-date information are issued almost every month. And of course, remember about practice. The more you do it, the better your own feeling of how to trade cryptocurrency on Binance and other platforms will be.
How to Trade Cryptocurrency for Beginners: Basic Points Everyone Needs to Know
Here you have a basic step-by-step guide on how to trade cryptocurrency for beginners. The topic is enormous and for every step, there should be 10 additional articles, so make sure you don’t lose the chance to educate yourself of every point below:
1. Get familiar with blockchain.
Yeah, it might be too technical and seemingly too far from how to trade cryptocurrency short term, but you wouldn’t want to invest in a company you know absolutely nothing about, right? Research the term, understand the block structure, how transactions are made, and more.
2. Learn about the top coins.
As of March 2020, there are about 1,600 coins listed. The top ones are the least risky and volatile, the most stable to work in, whether it’s a long-term investment or a quick hunt for cash. The most popular and stable coin is Bitcoin, some other good options are Ethereum, Ripple, Bitcoin Cash.
3. Research the coin you want to put your money in.
While Bitcoin and Ethereum are almost always a good choice, traders who want fast profit usually choose less popular coins. In this case, it’s important to learn as much as you can about those. Learn about the periods of growth and drop, maybe there’s a pattern or maybe it depends on some other financial events.
4. Learn the key rules of day trading.
Day trading allows gaining profit by selling and buying in crypto pairs, choosing a proper time and rate for the operation. Choosing the Bitcoin-Ripple pair, for instance, you can buy 100 XRP in the morning (day, evening, anytime) at the cheapest rate available at the time. Following the market, in several hours you can sell those 100 XRP for a much higher price, gaining more BTC.
5. Learn to use market, limit, and stop orders.
To make the human error as small as possible, learn the difference between the orders. Emotional trading usually isn’t the best thing compared to knowledgeable trading. Learn when to use said orders, how they work, and how to make the least mistakes possible. This won’t guarantee loss elimination since the market is very volatile, but you’ll definitely save a lot of finances from perishing.
Continue learning until you get all the basics. Try using apps with play trading first, understand when to buy and when to sell, and only then proceed to trading real crypto.
How to Successfully Trade Cryptocurrency: Professional Tips for Success
Here are some golden rules of cryptocurrency trading:
• Invest the money you can lose without falling into financial scrutiny. Spare a certain part of your income for investment, it may be 1%, 10%, or even 30%, depending on how much you don’t mind losing;
• Always follow Bitcoin changes; if its price grows or drops drastically, altcoins may drop, and if it’s steady, altcoins may grow;
• Don’t invest everything in one coin, make your investments diverse. Yes, compared to Bitcoin, all the altcoins are quite cheap, but you never know when the big rise for one of those coins will be;
• Don’t let your greed take control. If you see a 30% rise, consider withdrawing at least a part of the funds. The prices may go up 50% but it may also drop 50%, in which case your desire for more will lead to a big loss.
In conclusion, yes, once you get into trading, it may be difficult and confusing. After some time, a bit of losses and wins, you’ll understand certain patterns, turn on your intuition, learn which services to use, where the fees are the best, where and how to buy. When things are getting out of hand, consider backing up your investment and follow the changes closely.
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.