Cryptocurrency trading is gaining considerable traction in the mainstream, with crypto payments being available at banks and businesses offering it as a payment method. For beginners getting into the world of crypto, there’s a steep learning curve for success. This article assumes that you already know how to open a digital wallet and buy initial assets, which is why we dive straight in below to discuss the basic guide to cryptocurrency trading.
Pick Your Exchange
There are countless cryptocurrency exchanges out there, and they all boast to be the best in the business, which is why you need to practice caution and do your research. You need to find one that is well-reviewed and has powerful security features including two-factor authentication (2FA). Our favorite crypto exchange for trading any coin is Cryptology, which offers secure transfers between over 1000 coins.
Basic Strategy
When you start trading cryptocurrency, you don’t need to overcomplicate it. Put a basic strategy in place before you start diving in. You can learn from forums and on social media platforms how to trade effectively but remember that there is no secret formula to cryptocurrency trading; the very nature of the coin makes it this way.
Automation
Humans need sleep to stay functional, unlike the crypto market. Therefore, you should automate your systems to make sure that you never miss a beat. With just a little bit of research, you will find plenty of tools that will automate your portfolio. You should make sure that the service you use is reliable and won’t rinse your accounts dry.
Portfolio Building
No matter which crypto you decide to invest in, don’t stake all of your investments on one coin. Instead, build up a steady portfolio by investing small and often. Distributing your risk across multiple markets will help you to mitigate the volatility risks involved. When considering your complete investment portfolio, it’s suggested that you don’t invest any more than 5% into cryptocurrency.
Cold Store Assets
The chances are that you have a hot storage wallet, which means it’s connected to online services. Having a hot wallet doesn’t mean your finances are unsafe, but it makes your assets more vulnerable to attacks. Instead, you should transfer your assets into a cold wallet, and look after the drive and keys with your life; if you misplace your private keys, you lose access to your entire wallet.
Have Patience
The crypto market is in a constant state of change, and there’s no real way to predict which way the market will grow. If you back a coin and see its value drop, you need to have some patience and trust that the market will come back full circle.
Cryptocurrency has become extremely popular over the last decade, which is why more people are looking for trading options. When you start trading, you need to find a secure platform with plenty of currency availability. To avoid missing important times when you are asleep, automate your wallet to do the hard work for you, just be careful not to get robbed. Crypto trading is a patient game, so try to have faith when the market looks hopeless.