Cryptocurrency Trading – How to Start Guide
You’ve learned all there is to know about crypto. Now, it’s time to start trading! You’re likely buzzing with questions. How do I go about crypto trading? What’s the best crypto to start with? How do I stay safe while trading? Well, you’re in the right place! We’ll discuss all you should know in this cryptocurrency trading guide. Are you ready? Let’s get started!
Cryptocurrency Trading Guide – Where to Start?
If the world of crypto still feels new to you, you’re not alone. It does take some getting used to. Here’s a brief recap to ease you in.
Trading is all about buying and selling assets for profit. With crypto trading, you’re buying and selling digital assets. The goal is to gain from price movements in your crypto assets. Whether that’s an upward or downward movement. You can decide to bet that the price of an asset will improve. This is called a long position. Or you can bet that the price will drop shortly. This is called a short.
There are tons of strategies you can employ for crypto trading success. For instance, you can decide to look into short-term trading. This gives you slight but quick returns. Compounded over several trades, you can amass a tidy haul. Popular short-term strategies include margin trading, copy trading, day trading and swing trading. Or you can decide to hold your crypto for the long term. It’s entirely your choice!
What Do You Need to Start Trading?
Now we’re through with the basic, we can get down to business! How do you start trading? Here are practical tips to follow.
How to Start Trading
First, you need to find a trustworthy crypto exchange. That’s where you’ll meet people you can trade crypto with. You want an exchange that is credible and secure. It should have great exchange rates and fees that are competitive and transparent. CoinMetro is a great exchange for fast trading with transparent fees. It’s available in more than 100 countries worldwide. Check it out!
After signing up on an exchange, you’ll need to purchase crypto next. Some exchanges only allow you to trade if you already have crypto. While others will let you buy crypto with fiat first. You can do both on CoinMetro. After signing up, you’ll see clear instructions on how to buy your first crypto, then trade crypto to crypto. If you’re unsure about which crypto to buy, no worries! Check out our guide on best crypto to buy now, and the best crypto tokens in 2020!
Lastly, be certain to find a secure wallet to store your crypto. While most exchanges allow you to store crypto on them, it’s safer to have a dedicated wallet. There are many great options to pick from. These include web-based wallets like MyCelium. You can also try out a hardware wallet like Ledger. Now, you’re ready to see exactly what a crypto trade looks like.
Walk Through a Crypto Trade
You can check out the markets page, view more info and price movements per assets. Here, you’ll see all the available assets, their price movements and market cap. Here’s how to place a trade. Let’s say you want to trade bitcoin (BTC) for some ethereum (ETH). First, you’ll need to deposit crypto in your account from your wallet. Locate a page called “funds”, “balances” or simply “deposit”. There you’ll see instructions to deposit crypto from your wallet. This might take a few minutes.
After funding your account, go back to the exchange page. Select trading pairs or assets you wish to trade with, enter the amount and start a trade. And that’s it, you just completed your first trade! You can buy at the current market price or you can set up limit orders.
In addition to this, you can also use leverage to enhance your profits on our margin trading platform. But make sure you practice trading beforehand as margin trading can be risky.
How to Stay Safe When Trading?
Although completing a trade is easy, you should know that trading crypto is risky. As a result, you should take proper care when trading. How do you remain safe? First, is by recognizing the possibility of loss. You won’t win all trades. Knowing this will be key to learning when to end bad trades. And not getting into one in the first place.
Learn to diversify your portfolio. Don’t spend all your funds on a single asset. That can be very risky. Leverage on tools such as charts, indicators and cryptocurrency trading bots. They can be very helpful to reduce risk. Want to learn more? We’ve created longer guides to help you start trading. Check out our articles on cryptocurrency trading for beginners and our comprehensive guide to cryptocurrency trading.