Crypto Trading for Beginners
There has been a lot of debate on this topic over the last couple of years. What does it take to be good at crypto trading? It there some underlying secret or skill people use to take to get rich or does it have everything to do with how lucky you are. Ever since some people who started from zero took themselves to millions using Crypto, everyone wants to learn how to do Crypto trading and the numbers have been going up ever since. With the younger generations keen to learn the ways to make it big instantaneously, the graph of new users has taken an uptrend now that there are many apps and companies focusing on the aspect of easy transitions. But we all know, not everyone makes it big and for half the new comers, they suffer an early loss or don’t see much result in the early stages and quit very soon. Like everything else in the world, if you want to be good at it, you have to practice and work hard and I can guarantee one thing for certain. Crypto Trading is more than luck and I will give you some tips below on how to make it work for you.
If you are completely new to the concept and don’t know where to begin, then this paragraph is for you. The first thing you need to do is choose an exchange you want to trade on. Make sure the exchange is dealing in the coins you want to trade and that it is reliable. I recommend going to one of the well-known ones such as Coinbase or Binance for your first transaction. Next thing you will need is a Crypto Wallet to store your assets in. It is highly recommended that you be extremely careful at this point as if your wallet is breached, then you could end up losing all your cryptos so choose a wallet very wisely. Our suggestion would be to download Tyslin Wallet which focuses on security and ease of use. It is the perfect wallet for a beginner. It is useful to find some good sources of information first on the web to get an idea of the do’s and don’ts. And there are advanced technologies such as indexes and analyzing software’s etc that can help make your experience easier and more fruitful.
Research, Research & Research
Predictions and smart guesses sometimes work but we can chalk that one up to plain luck. No one would have thought that Bitcoin would go so high in 2017 back when it first came out. Yet there were some people that actually went in and bought a lot of BTC only to find themselves swimming with riches when it finally hit the All time high. But not everyone can afford BTC now. Prices of every coin can be found online on some great sites such as Tyslin or Coin Desk. Historical data can be looked at from trends and past increases or decreases in value. There are certain links of Altcoins with Bitcoins and certain links with company stocks and even the stock market but the good news is that all the information is easily accessible. Now I will not be telling you which cryptocurrency to buy but I will let you know that monetizing through cryptocurrency is possible and the more you research, the more you will be able to accurately predict the trend and earn a profit. Key note, this isn’t 100% guaranteed but it will improve your chances.
Types of Trading
There are two common types of Crypto trades one can do in moving towards earning. The first or the most used one is called Spot trading in which you purchase a cryptocurrency and wait for it to rise on value or exchange it for other cryptocurrencies that you think will rise in value. The value changes frequently so it’s a good practice to stay updated with all the latest. The other type usually reserved for advanced traders but good knowledge to have for all is known as derivative trading. In basic terms, a derivative is a sort of financial contract between two or more parties regarding the price of an underlying asset in the future. These aren’t actual cryptocurrencies but mimic the price of one. Once a contract is signed, you can purchase an asset/derivative at a future date on the price that is fixed now. Point to note! This can be extremely risky as well so better understand this fully before making any moves. I would stick to spot trading for the newbies.
Short Term vs Long Term Trading
It doesn’t take a veteran to understand what I mean by this topic but it is important to know that both options are available for you once you get into it. With Short term trading, users can buy a cryptocurrency and hold it for minutes, hours, weeks or months before selling it for a profit. Depending on if you think the price will react, you can immediately sell or keep for more earnings. If you have good analytical skill and keep track of markets day in and day out, then short term trading might be a great path to take. But bear in mind that crypto market can be very unstable. History has had multiple cryptos crumble in under minutes and that is why it is very important to understand the importance of being careful while trading. As for long term trading, it refers to buying and holding for more than a year. Ever heard of HODLing? In crypto slang terms, it means Holding on for dear life. The term popularized by the crypto community comes from the belief that no matter the price now, it will definitely increase in the future and it is true in some cases. Bitcoin was once worth under a dollar in 2011 and then almost reached $20k in 2017. People gained a 50000x return for long term trading of bitcoin. However, the disadvantages associated with long term trading are that users usually miss out on short term gains and some companies have even gone bust meaning that users can also lose investments. Any changes in regulations to policies can also affect users profit so once again, be careful!
This might not sound like much but it matters a lot. Most exchanges and brands might have you believe that trading fees won’t make much of a difference to your earnings but this is not true. 1% of every trade or a one-time payment with fine print clauses are all written down by companies who do not want to be upfront to their customers. This usually ends in the user not being able to maximize his or her profit. Our tip in this case is to always look for the best rates to ensure your max profit and return. Do check out our whitepaper to see how we are planning on making it convenient for all our users here.
I wont lie to you. Crypto trading is a risky business. While there are many who have made profits from it, keep in mind that there are those who have lost a lot of money as well. We cannot emphasize how important it is for users to be careful while trading and making life changing decisions. Hedging might be a great idea to reduce risk. Staking and DeFi earnings can also be an alternative but the fact stays the same that everyone should be extremely careful. Even veterans have off days and there is no 100% guarantee. You can improve your chances by getting more information and experience but it will never take you to a confirmed profit. I guess a little luck is definitely involved. If you wish to know more about trading, why not reach out to us and we will get you in touch with one of our experts to give you that edge. We are always willing to give our users the extra benefit and hope you have a very successful trading experience!