There’s a new population of people that have created wealth and entered the ranks of the world’s rich. And it’s those that invest in cryptocurrency.
Crypto has only been around since 2009. Many people say that this asset class is still in its wild west phase. That means there’s a lot going on, too much for most people to understand. Things move fast.
And anyone willing to pay attention and participate can make money. But how do you make money in crypto? By trading.
We’ve put together this cryptocurrency trading for beginners guide to help people like you go from zero knowledge to an experienced crypto trader in no time at all.
Keep reading below to learn how to invest in cryptocurrency and start making gains right away.
How to Buy Cryptocurrency
Before you can trade crypto for profits, you need to know how to buy it. If you know how to buy stocks then you know how to buy crypto. One difference is you can Buy bitcoin with debit card or an ATM if you like.
Most people use an online crypto exchange like Coinbase. You’ll need to create an account, which requires identity verification. It can take a few hours or even days to get verified.
Once your account is active, you can link your bank account or buy crypto with a debit card (for a fee).
Alternatively, you can trade cash for crypto using a crypto ATM. You can buy the best cryptocurrency (such as bitcoin and Ethereum) as well as some other altcoins, like Illuvium. This source has more info on buying crypto for cash.
What Is Cryptocurrency Trading?
Now that you know how to buy, you can start actively trading to start making money. At its core, trading is very simple.
You buy particular crypto when you think the price is low. Then, when the price rises, you sell, pocketing the difference. It sounds deceptively easy. But no one knows how to time the markets, even professionals.
The process of buying and selling crypto is simple, as outlined above. Active traders will use platforms like Binance or Coinbase Pro, which provides a detailed trading window with tons of information to help you make trades.
The trick is determining when the price of crypto is about to change.
Many traders rely on technical analysis, which analyzes past price performance to find patterns and predict what might happen in the future.
Others prefer fundamental analysis, which takes into account the overall market sentiment and latest news headlines. A combination of both is likely the winner.
Cryptocurrency Tips for Beginners
The most important tip is to only invest and trade money you are willing to lose. While established cryptocurrencies are unlikely to go to zero, they can drop in value dramatically.
Also, only trade small amounts of crypto at a time. Many traders say you shouldn’t risk more than 1% of your capital on an individual trade. This ensures one bad trade doesn’t wipe you out.
Lastly, educate yourself. Understand crypto through and through. And follow along with the latest updates in the crypto industry.
Cryptocurrency Trading for Beginners; Think Long-Term
When it comes to cryptocurrency trading for beginners, most should probably avoid active trading. Instead, develop a long-term mindset. It’s much easier to win when you are willing to hold long-term.
If you can buy crypto in a bear market and hold until the next bull market, you can make a lot more money than active traders anyways.
Looking for more crypto tips and tricks? Visit our blog now to keep reading.