We are in the 21st century, and if you are yet to join the train of those making money from cryptocurrency trading, then you are really missing out. Bitcoin or Crypto related investments are the real things now. This article was carefully written for you, do well to read patiently to the end.
Cryptocurrencies (Bitcoin in particular), are the new rave in the digital financial circles. Despite their volatility, the ease of use and security features in cryptocurrencies, and so many other beautiful features they possess, have made them so popular that many people are beginning to get involved.
Today, cryptocurrencies have provided a lot of beautiful opportunities with which people make decent amounts of money online. Among these is by trading the volatility; also known as cryptocurrencies trading or crypto trading for short. Other ways can be through cryptocurrency mining, becoming market speculators, ‘hodling’ and lots more.
Cryptocurrency trading if done well can bring immense profits for pro traders or even beginners. Though the market is somehow new and still in the green phase and widely fragmented; margin trading, futures, arbitrage trading, spot trading etc. are all available, and with very little spreads.
Many people are now making cool money from the online trading of cryptocurrencies. Compared with some other financial instruments and trading that go with them, cryptocurrency trading is very easier to start, with very little or no entry barrier. Anyone can jump in or out at any point in time.
If you already have some cryptocurrencies in your crypto wallet, you can start crypto trading immediately. In most instances, verifications are not required or mandatory before you can start to trade.
What Is Crypto Trading?
Crypto trading is not too different from stock market trading, for a layman’s understanding, it basically entails buying at a low price and selling as the price has gone up. Cryptocurrencies are very volatile in nature, this means that a particular cryptocurrency or pair can rise or fall many times in a given day.
This ‘up and down swing’ in prices make it a perfect instrument for people who wish to invest their funds and try out their skills in analytic speculations or predictions.
As a crypto trader, you are simply buying cryptocurrencies at low prices and selling them off when the prices go up, and repeating the process when opportunities present themselves again. Crypto trading provides a good profit margin and you may not necessarily have to wait too long for price swings. These happen almost every time with significant differences.
Six (6) Simple Steps To Get You Started With Crypto Trading
#1 Sign up for a trading account in a Cryptocurrency Exchange
The first step you must take in order to become a crypto trader is to sign up for a trading account in a reputable exchange or crypto trading platform.
Cryptocurrency exchanges are those platforms set up basically for trading cryptocurrencies online, just like you have the stock exchanges. There is, however, no central crypto trading exchange, instead, there are countless numbers of crypto Exchanges online, and they operate 24/7.
Having the above in mind, you have to make a choice or pick an Exchange that suits your trading needs. Consider the following when choosing a given cryptocurrency Exchange:
Account funding and ease of withdrawal
It is important to go for an Exchange that makes it easier for you to deposit fiat currency into your trading account considering the country or location you are creating the account from. The same thing goes with fund withdrawal.
Try to find out what percentage of the trading amount of each trade is being charged as trading fees, then go for the Exchange that will offer the most favourable fees. You may read reviews online or follow the recommendations of someone already in the trading system.
Traded volume or Liquidity
Liquidity in cryptocurrencies trading makes it easier for crypto traders to easily get in or get out from a given trade. To really be a successful and profitable trader, you have to choose an Exchange where high volumes of cryptocurrencies are traded on daily basis and with a good market depth.
Binance is top on the list of the most traded crypto Exchanges in the whole world. Binance exchange operates the world’s biggest cryptocurrency exchange by traded volume. Their trading fee is comparatively very low. Binance is just best for beginners or newbies in cryptocurrency trading.
- Huobi Global (https://www.huobi.com)
- Kucoin ( https://www.kucoin.com )
- Luno (https://www.luno.com)
- FTX (https://ftx.com)
- Poloniex (https://poloniex.com )
- OKEx (https://www.okex.com)
- FTX US (https://ftx.us)
- Bitstamp (https://www.bitstamp.net)
In fact, there are over 300 cryptocurrency trading and digital exchanges out there. This is not to scare you, the crypto space for your information is flooded with frauds and scammers. There are many crypto trading exchanges out there without good reputations. Always bear this in mind and stay guided, and make diligent findings before settling for one.
To help our readers stay informed, and to make informed decisions when picking a crypto trading Exchange, we have compiled a list of the top ten (10) cryptocurrencies Exchanges in the world, ranked by volume. Use the link below to navigate to the page:
Once you are done with the signed up process on your choice Crypto trading Exchange, then fund your trading account with fiat or cryptocurrency, depending on the choices available, or one you have chosen; this can be done on the exchange, or you buy from outside (maybe via peer-to-peer) thereafter, make the transfer to your Exchange account.
#2 Study the market and develop a trading strategy.
Having funded your crypto trading account is one thing, trading and making profits from the account is another ball game entirely. This brings us to the second step on the list, which is to study the market and come up with a trading strategy.
You shouldn’t dive into crypto trading without having properly studied the crypto market and how it behaves, this is always a very bad mistake beginners make. Before you carry out any trade, study the market, then develop a good strategy, and review the strategy very well.
Cryptocurrency trading without properly studying your strategy and the entire market can be likened to a warrior who took a knife to a gun battle. No matter how long the fight lasts, he will definitely lose.
Pro traders and experts do put in a lot of time to study the market, they are also very patient. Most time, they don’t even trade until the market provides them with good entry, and when they do, even if for short time, they make a very good profit. Remember they put in lots of time in studying the market. You should emulate this too!
“Always remember that not trading is still a very good trading decision”
More so, being greedy will not make you a profitable cryptocurrency trader. Whenever you see profits in relatively good percentage, take it without blinking. Always bear in mind that you are dealing with a very volatile market. At one time you may see a good rise; the next moment, everything will come crashing. So once you are seeing it, especially if it reflects what you have in your trading plan and strategy, take it and move.
Crypto trading is never a get rich quick scheme; though it can make you rich overnight no doubt. So do not jump into crypto trading with the mindset of becoming a millionaire overnight. When it comes to crypto trading, you require a great deal of patience.
#3 Get a lot of practice while at the same time, sticking to your plan.
It is one thing to study a lot of theories or even to draft a good cryptocurrency trading plan, that is the easy part. The other side of it and which is the difficult part is the execution of the plan. Most times, fear makes most cryptocurrency traders deviate from their original trading plans. Even the veterans in the crypto world are sometimes guilty of this.
The fear of missing out (FOMO) and sometimes emotions do make crypto traders make decisions on impulse; very awful decisions that are not just contrary to the trading plans and or strategies, but decisions that may make them get stuck in a trade or lose money on the other hand.
No matter the market condition or circumstances, always stick to your crypto trading plan. If you feel you have missed an opportunity, just be patient, it will swing back to you…it requires just patience!
To prevent trading with fear, or being emotional while trading, a whole lot of cryptocurrency traders do automate their trading activities with good crypto trading robots (bots for short). Learn how you can automate your trades with crypto trading bots, and trading profitably
with them. Click Here
Many years of crypto trading experience can teach you how to stay calm while under pressure that comes with trading cryptocurrencies, so to be a proficient crypto trader, you must get a lot of practice, also learn to exercise patience and you will be very profitable in your trading endeavours.
#4 Join Crypto Trading Forums and Communities
To be a successful trader, it is very important you consider joining a few communities of like minds. There are whole lots of crypto trading groups on social media websites like Quora crypto communities, Reddit crypto communities, Facebook crypto trading groups, Twitter, WhatsApp crypto groups and even Telegram groups etc.
Participating or following such forums where important crypto-related topics are discussed, a following a very good crypto analyst can make you get a piece of information just at the right time, information that can bring you immense profits. Just know it that crypto space is impacted a lot by fundamentals and news; getting information on time will make you very successful in this business.
#5 Read, Study, Research.
You can find many free resources about cryptocurrency trading online. This will help you a lot. You can easily download free PDFs online about candlesticks analysis, indicators, technical analysis, etc. On YouTube in the same vein, you can also get good videos that will teach you one thing or the other about trading cryptocurrencies.
Just make sure you are studying and making researches day after day. The internet has loads of good resources to help you.
#6 Get a very good mentor.
A mentor can be anybody you already know and who you feel has been in the cryptocurrency trading game long before you, and who knows better than you do. Mentorship can also come in the form of paid services or subscriptions from another person you stumbled onto possibly online.
A mentor can really guide you to becoming a very proficient crypto trader. Most times, they don’t come cheap, but they can help you to master the art of crypto trading in less than no distant time.
Having done all these, you are sure becoming a very successful crypto trader and no difference from a pro or veteran trader who has long been in the crypto trading space. Waste no time again. You still have the opportunity to join the crypto world, and make a good sum of money from it. THE TIME IS NOW!
Disclaimer! This article is for information and educational purposes only. Do not consider it as a bit of financial advice.
Kindly share this article using any of the social buttons below.