Many investors like trading cryptocurrency since it is a very volatile asset. If you have already invested in crypto, the next step will be learning how to trade your assets strategically. This article will talk about the basics of crypto trading and answer some questions on how to start trading for beginners.
Crypto Investing VS. Crypto Trading
Before you start growing your digital assets, you first need to learn the difference between crypto investing and crypto trading. The outcome time for investing in crypto ranges from medium to long term; that means that crypto investing is perfect for people who plan to stay long-term in the industry.
On the other hand, crypto trading outcomes range from short to medium term. This is great for beginners who want to increase their assets during market highs to achieve higher returns.
How To Start Trading in Crypto
Trading might seem scary with many complicated terms and lines, candlesticks, stops, limits, and many more things that could deter people from really getting into it. Don’t worry, we’ll help you start your journey and take you through it without the jargon.
Choosing Your Platform
The platform you choose to trade in is quite important. Some platforms have higher fees than others, some may have more features, and other platforms may have higher credibility. Platforms like Decode Global are one of the world’s oldest and most trusted platforms, being in the trading game for many years.
Trading platforms with a lot of experience have developed knowledge and technologies to help their traders make the most of their time and money. Choosing the right platform will get you started on a win.
Know Your Risk
Trading an amount you’re not ready to lose is a very common mistake. Trading is all about strategies, and you need to know when to employ those strategies, so making mistakes and learning lessons are very common. Simply put, experience is what makes money, so start off small and with an amount that won’t hurt to lose.
Not all your trades will be wins, and not all days will end on the green. However, the more experience you gain, your chances of winning are better.
Learning the basics
Strategies are very important in trading; they make gains and prevent losses. Knowing when to stop buying (buy stop limit), when to sell when the market gets too low to prevent losses (stop-loss order), or when to sell your currencies when they reach your desired price (sell limit).
To learn more about the technical basics, visit Investopedia, where they have a large amount of information about candlestick patterns and more information about stops and limits.
Start Trading
Now that you’ve equipped yourself with some knowledge, it’s time for you to gain some experience. We highly suggest starting with a very small amount. There usually is a minimum deposit regarding trading platforms, but the lowest amount you can trade is much lower.
No matter how high your budget and risk capacity are, we suggest you start low, like $5-10. The first few weeks or months of your trading journey shouldn’t be so focused on making the big bucks but on gaining the wisdom to do so. Blowing your whole budget on the first day is a surefire way for you not to trade again.
The Best Time To Trade Crypto
Right before you start trading, you should remember that your goal is to learn how to trade and how the crypto industry works, and not to make a huge profit immediately. Cryptocurrency is traded 24/7, so technically, the perfect time to buy assets is when the value is at its lowest.
Timing your trades throughout the day is also crucial when you start understanding market data patterns. Depending on the type of crypto, their values usually rise in the first ten days of a month and are followed by a collapse in the second half, so use this information wisely.
Frequently Asked Questions About Crypto Trades
Do I need a license to start trading cryptocurrencies?
Crypto traders do not need a license to start trading in crypto. However, the platforms that operate for cryptocurrency exchange will need a license for legal purposes (depending on the country and its laws). Remember to check if the platform you are using when making crypto trades has a legal license for their transactions.
Can I live off of making crypto trades?
Yes, you can. In fact, many people who have been trading and investing in the crypto industry for a long time are earning more than enough to fund their lifestyles. However, to achieve this, you need to master the strategies in crypto trades and be aware of the risks that come with high returns.
How much do I need to start trading in crypto?
Theoretically, there is no minimum amount for you to start trading in crypto but since crypto trading uses platforms for the transactions, you will need to pay for the gas fees when making trades. If you are just a beginner trader, you can even start with $50 and you won’t have to worry about making expensive mistakes. Pros in this industry know that one should never invest or trade money they can’t afford to lose.
Create a Decode Account Today and Get FREE $DECODE! Scan the QR Code Now!
Decode Coin is the cryptocurrency made by the Decode Group, a financial services company that offers educational training, foreign exchange services, and fund management, with two decades of experience.
The Decode Coin ($DECODE) aims to be the most trusted currency used in the Financial Service industry, being used to settle all fees such as transaction fees and referrer fees. $DECODE may soon be used as a payment for all transactions within the Decode Group and over 50 partner establishments worldwide.
Visit decodeex.com/promo, Register and Verify your Email, Sign-in and Input your ERC-Wallet, Submit KYC requirements, and that’s it! You will be AIRDROPPED your FREE 500 $DECODE within 24 hours.