Cryptocurrency Trading Guide For Beginners

Cryptocurrency Trading 

Trading is the standard practice of transacting that involves money, a valuable asset, or a commodity. The world economy relies upon the phenomena. It dictates the prices of every entity, which is in demand or otherwise. Contemplating the similar behaviour in cryptocurrency, the mode of transaction and trading in cryptocurrency is understandable.

 Need of cryptocurrency

The basis of any invention or discovery is the need. If it works in tandem with human welfare, acceptance is the subject matter of time. To serve the concern of the digital economy and its far-reaching effects on humanity, it came into existence. Besides, keeping safety the priority, the crypto form of the digital economy is finding places in people’s hearts.

Precisely, it is the way ahead and mode of keeping your hard-earned money within the purview of your pockets. Thieves can have no claim on it.

 What is the utility of crypto trading?

It is a question that validates the importance of cryptocurrency trading. Why did the need arise? What was the requirement to jump on it from the conventional and traditional stocks and commodity market trading?

One answer that suffices it all is the responsive feature. It is time that we all are running short. In that way, stocks take a longer duration to fit in your portfolio. On the other hand, cryptocurrency is right there in your account within a few minutes.

For now, crypto trading is a decentralised entity. No government, authority, and administration control it. The liberty that it warrants makes it an attractive option for users.

Stocks and commodities have to follow the rules and regulations. It abides by the laws of a nation. So, companies listed in stock markets across the world have a governing body regulating them.

Whereas cryptocurrency does not depend on outside dynamics. It has its own set of advanced computer mechanisms, networks, and software running it.

The technology heads it ahead of other volatile markets. And security features are a given.

Mechanism of cryptocurrency

It relies on cryptography for verifying each transaction. It is posing as an alternative form of economy for many. However, for now, it overtly depends upon the third party as the means of exchange. The deduction in the overall value of amount hurts the prospects.

Banks may take a day or more to acknowledge receiving the payment. It causes inconvenience.

Though, Bitcoin is one such cryptocurrency that delivers on all the doubts. Its optimum transparency technology can help cut down on corruption and help in mitigating inflation.

 Cryptocurrency trading for beginners

Before we invest our time, energy, and money in anything, proper research does not harm. And beginners should remain wary enough before initiating a step. In-depth research, study, and investigation can pave the way for understanding the dynamics of this trading.

 Steps aiding you to deal in the game of crypto trading

  • Beginners need to be cautious about every stepping stone. They should consider noting down their activities in a diary. This exercise enriches their experiences and teaches them a lesson.
  • Write down all your passwords, URLs, login credentials, confidential information regarding your crypto wallet.
  • As you are new to the game, make sure to invest in the blue-chip or the best prospects.
  • Do not store your password on a browser or your login manager or devices that have access to the internet.
  • Violating the above step can make you easy prey for hackers, so watch out.
  • Long and convoluted passwords are saviours for life. It applies handsomely for everyone.
  • To keep up with the first line of defence, take up complex questions and answer them likewise.
  • Sanitise your system before making any transaction on it. A single malware or virus can lead to mayhem.
  • Make exchanges from official currencies to deny any cheating.
  • Using the same password for other accounts can dupe you.

Platforms assisting cryptocurrency trading 

Cryptocurrency trading platforms help you in buying and selling of your favourite virtual currency. Here will we shed light on the best performing platforms that are ruling the chores of the trade.

Bitfinex:

This platform plays on its user-interface acceptability. It is the tipping point that attracts a vast footprint. Its support to all renowned virtual or cryptocurrencies makes it a good prospect for traders. The less time lag allows here, allows the buyer to get hold of the entity in a budget. Though, not everything here is hunky-dory. The threat of security looms large. It has a past of landing in the hands of hackers.

Coinbase:-

It is one of those platforms that trends Bitcoin. People lay their faith in it without inhibitions. It comes packed with multiple features that work in favour of buyers, sellers, lookers, learners, beginners, technicians and everyone involved in it. Folks keep it on their priority because of unbreachable security features and acceptance of money from a plethora of wallets. It offers a fantastic buying limit at a low cost. What else would a beginner want? Despite heavy traffic, it manoeuvres your transaction in no time.

Changenow:-

If you are willing not to take too much botheration, then the platform serves the purpose effectively. Sign-up is not required for an account opening here. It is a tailor-made space for those who want everything quickly. They provide 24 hours support for 365 days a year. No extra penny gets charged for a transaction. The artificial intelligence-enabled element in it informs the best buys regularly.

Poloniex:-

It is gaining momentum in the hearts of people because of the deliverables. Investors are finding their friend on the platform due to high exchange and volumes in some cryptocurrencies. It provides seamless trading to its clients. The platform can store the data in offline mode also, which adds to the security purpose—Poloniex strategies its ideas with algorithmic technology to serve people with better chances of earning.

Changelly:-  

People who wish to keep their identity under wraps or conceal it, the platform assists them in doing so. The trading finds its initiation through an email, and it makes everything hassle-free. It is accessible to all from across the globe. So, the universal appeal is translating into positive word of mouth. It has the potential to convert cryptocurrencies using other applications. Clients can use it as a widget also. Changelly does not have any limitations cap to man it.

Kraken:-

This website works on leveraging the user experience through its simplified and super responsive features. It offers solutions to all types of traders who visit Kraken. The site provides plans that are accessible for beginners to veterans, coupled with flawless customer support. The enchanting services that it swears by have cut short the possibility of fraudulent to bare minimum.

Bittrex:-

The platform is revolutionising the dynamics of trades by enhancing public perceptions. It stands out in standards in terms of technology trading cryptocurrency market. The resourcefulness in the stream transactional capacity and faith of customers has led it to become one of the finest. It is one of the rarest sites that allow third party intervention through API. Digital wallets, advanced blockchain technology, swift transactions, and focus on security concerns make it viable.

How to go about trading in the cryptocurrency market?

As others would mention, there is no rocket science to it. You should take your chance but wisely. Consider the virtual currency market as some traffic signal. Stop when it is reds (dipping furiously), get your funds in yellow, and in green just invest.

There are no rules for guessing, and you have to be patient with your greedy appetite. An appetiser in these scenarios should quench your thirst. Quest for more significant profits can cast troubles.

 Some of the essential tips that one pay heed to:- 

  • Rewards and risks may seem synonymous with each other. There is a thin line manning both intentions. So, never invest more than you can lose.
  • Averaging your portfolio from time to time is advisable to learn tricks of the trade.
  • Do not hesitate to make small profits.
  • Greed takes a toll on your wealth. So, be wise and exit while the crypto market is surging.
  • Do not make a significant investment at once. Take your time and picture the volatility, fundamentals, and fluctuations.
  • Unlike stock markets, cryptocurrencies trade for twenty-four hours a day and three sixty-five days a year. This phenomenon makes it highly unpredictable.

Recommended Read: https://fxreviews.best/blog/9-step-plan-to-being-a-stock-trading-expert-2020/

Eye bitcoin:-

If you are willing to scale heights in the market, then you must keep a tab on how bitcoin performs. The reason for it is that most of the crypto or virtual currencies get traded using bitcoin. If it is on the rise, the market shows signs of a surge, else it slips.

Small portion investment:-

You cannot gulp the entire food at once. Small portions intake with some variety helps in better digestion and taste, of course. Similarly, investing your money on a single virtual currency can incur losses. It can cause a deficiency in the wallet and your account. For result-oriented and profitable outcomes, invest in a few currencies. If one causes you some loss, who knows the other one can provide you with some respite. It is like being mindful.

Important categorisation:-

While putting yourself into research, categorisation plays a pivotal role. You come across relatively volatile coins, which have limited volumes but enormous fluctuations. There are some that trail with great publicity and fall short on delivery point. A few currencies seem right for the future, holding them for long-term is profitable. Bifurcate or categorise them to create a balance in your investments.

Do not Panic:-

Beginners tend to feel helpless when markets shatter. These are the testing times. Have patience, consider them as an opportunity for calculated investment. That can result in a profitable venture. Correction or dip in the market is like rain for farmers. You can sow the seeds and wait for good crops. Here your calm works as the sunlight to ream them.

Put a stop loss:-

Initially, when you are susceptible and vulnerable regarding your coins’ performance, put a barrier. It is known as stop-loss in the technical term. If you do not want to hold a coin for a longer time and it’s dipping, put a stop-loss on a specific price. Once it touches that, you’ll exit automatically, as your asset gets sold. That can save you from incurring heavy losses.

If you are a fresher and thinking of getting into the unknown waters of cryptocurrency trading, just do it. Never have two thoughts once you decide to experience something new. Research about it, learn from other’s mistakes, analyse, check the volumes and see the past. Take one step at a time. Once you claim expertise in the domain, I’m sure that you will over time, experiment. Once you make profits, keep your invested money on the shelf and use it instead for future transactions. And pass on the sound advice.

 

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