How to Trade Crypto : A Brief Beginner’s Guide?
Cryptocurrencies become more and more popular, attracting new investors each year. To trade crypto, you can find a special exchange. This article will provide you with some guidelines on how to make your first steps in cryptocurrency trading.
Step 1: Find the best exchange/broker
Cryptocurrency exchanges are numerous and it is not an easy task to find the best one. Traders Union experts recommend focusing on their reputation, security, and conditions. To find out more about a particular exchange’s reputation, you can read trader’s reviews that are put together in most cryptocurrency exchange reviews that you can see on our website.
As for trading conditions, you can also find this information on our website. Choose exchanges that require smaller commissions and offer as many crypto assets as possible. Some cryptocurrency exchanges offer a lot of additional features, including investment opportunities or crypto loans.
Aside from crypto exchanges, you can trade crypto via Forex brokers offering crypto CFD assets. By registering there, you will not buy cryptocurrencies directly, but special contracts with crypto underlying assets. This is a good way to profit from cryptocurrency price fluctuations without going into the blockchain.
Step 2: Market Research
If you are wondering how to trade crypto, the next step is to find out which coin or token may have the potential to grow. To analyze a particular cryptocurrency, you can use both technical and fundamental analysis. Modern cryptocurrency exchanges allow you to use the most sophisticated tools like trending or oscillator indicators, graphic tools like trend lines, channels, support resistance levels, etc.
Step 3: Define the Amount You Are Ready to Trade with
Before buying a particular coin/token, you need to think about the sum you are ready to invest in this field. The amount should be enough to benefit from considerable eventual profits. Keep in mind that Forex brokers with crypto CFDs allow you to enjoy leverage, which can boost your initial deposit amount.
Step 4: Mind Your Risks
Before we place the full stop, there is one more important aspect to mention. All professional traders regardless of what market they choose use stop losses and take profit orders to cut their trading risks. Risk and money management should be part of each trading strategy. By properly managing them, you can improve your long term trading results even with 50% trading strategies.