Featured Image Caption: Bitcoin Standing Front with Background Cryptocurrency Trading Chart
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Cryptocurrencies are a new, exciting investment opportunity. Bitcoin, Ethereum, as well as trading pairs such as ETH USDT, DOGE USDT and other cryptocurrencies have been rising in value over the past year, and it’s very possible that the market will continue to skyrocket in 2018.
The problem is that buying and selling cryptocurrencies can be confusing or intimidating for people who don’t know what they’re doing. If you’re intrigued by the huge payouts that people are getting from cryptocurrency investments, but don’t know where to start, this article is for you.
This beginner’s guide will show you how to trade cryptocurrencies like a pro, no matter how much experience you have.
What is crypto trading?
Crypto trading is the act of buying and selling cryptocurrencies with fiat currency. It’s similar to the stock market and isn’t that complicated once you understand the basics.
You can use crypto trading to grow your assets or just make money day trading. If you’re new to the crypto space and want to start trading, this beginner’s guide will teach you everything you need to know about making your first crypto trade.
How to trade cryptocurrency for beginners
Set up an Account
You’ll need to set up an account with an exchange such as KuCoin, Coinbase or Gemini first (more on those later). Once you have your account set up, you can purchase coins using fiat currency through your bank account or credit card (you may want to deposit more than one type).
If you want more advanced features like margin trading or stop losses then we recommend signing up with either KuCoin, Binance or Kraken where they offer advanced features such as these at no additional cost.
Pick a crypto to invest in
Now that you know how to trade, it’s time to pick a crypto. If you’re going to be investing your money in this space, it makes sense to do so with some thought and research. The first thing to consider is the community around a particular coin. If they’re supportive and enthusiastic about what they’ve created, then there’s probably something good going on here.
Start trading
Stop losses are a way to protect your investment by setting a limit on how much you risk at any given time, while taking profits give you the ability to lock in profits as soon as an asset reaches a certain price point, or relative to its own historical performance.
Setting these orders is pretty simple: just select the market—buy or sell—and enter the price at which you want to execute that order, based on the chart above. As soon as your order is filled, it will appear on your dashboard with information about its status (whether it’s pending or filled), quantity and value. That’s all there is to it!
Store your cryptocurrency
The next step is to keep your cryptocurrency safe. You should use a wallet that is able to store cryptocurrencies offline, in cold storage. If you need help with this, there are many great guides online that will show you how to set up an offline wallet.
Make sure that the backup of your offline storage is somewhere safe so that if anything happens to your computer or phone, you will still have access to your funds and you be able to recover them later on.
Basics of Cryptocurrency Trading
Different Types of Cryptocurrencies
A cryptocurrency is a digital asset which has been designed to work as a medium of exchange. It uses cryptography for securing the transactions and to control the creation of additional units of the currency. Cryptocurrencies are classified as a subset of digital currencies as well as are also classified as a subset of alternative currencies and the virtual currencies.
Structure of a crypto trade
As a beginner, you should know that trading cryptocurrencies is a two step process:
- Place the trade order (buy or sell)
- Wait for confirmation of the trade
Remember to always follow the golden rule of investing and trading: buy low, sell high. If you’re new to this kind of investment, then it’s important not to let emotions like greed and fear influence your decisions.
By keeping those emotions in check, you’ll be able to make smarter trades that are less likely to backfire on you. Lastly, don’t trade on rumors or speculation—the price action alone will tell all.
Reading the Markets
If you’re looking to get into the crypto trading game, it’s important that you first familiarize yourself with some of the basic concepts of trading. Here, we’ll discuss some common terms and strategies used by traders who trade cryptos.
Bull market:
A bull market is one in which prices are rising over time. In a bull market, investors are optimistic about future price increases and therefore willing to pay more for assets than they would be if they were bearish on their outlooks.
Bear market:
The opposite of a bull market, where prices are falling over time. Bear markets tend to occur during times of pessimism or fear regarding an asset class Investors often sell their assets during bear markets because they think its value will be lower later down the road than what it is now (and thus want out).
Breakout:
A breakout is a movement that causes a security’s price to break out of a trading range. It occurs when there is an abrupt change in the direction of the price after it has been relatively stable. The security’s price will move beyond the previous point of resistance (the top in an uptrend or the bottom in a downtrend) before turning.
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