People have made large amounts of money trading cryptocurrencies and proceed to do so. This doesn’t mean cryptocurrencies trading is effortless and effortless.
There is a chance you will end up losing money, you might end up losing all of it, but with the right strategies you can certainly minimize risk and end up with nice profits.
If you have some money lounging around, you too can get began te no time with spil little spil you like. It’s never too late to commence cryptocurrencies trading.
You need to be strategic, patient, able to research and analyze market trends. Spil a rule of thumb – never invest what you cannot afford to lose.
#1 – Get Bitcoin
Te order to begin trading cryptocurrencies, you will very first need to buy some bitcoins. That’s because most of the exchange companies you will use to trade accept payments ter Bitcoin, BitcoinCash or Ethereum. The best way to do it is through a bitcoin local exchanger ter your country.
Ter the US, exchanges like Coinbase, Bitstamp and Kritiseren are go-to for most people. You can check exchanges ter your country here.
If there is no bitcoin exchange ter your country, you could always use localbitcoins.com and buy bitcoin from other people. Localbitcoins is an escrow service which helps to match buyers and sellers. You can either pay the seller by metselspecie or handelsbank transfer. Most of the sellers advertise whichever payment method they choose.
Recall: You don’t have to buy a entire bitcoin ($13900 spil of writing), you can purchase bitcoin te fractions known spil Satoshis. For example, 100k Satoshis is equal to 0.001 bitcoin.
Now that you have some bitcoin, it’s time to transfer them to a trading exchange. There are many exchanges, but the most popular and reliable ones are Bittrex and Poloniex.
There other cryptocurrencies you should look into like for example, Ethereum.
#Two – Prerequisites for Trading
Before you begin investing your hard earned money ter other cryptocurrencies, there are a few things to keep te mind:
Before placing a trade you vereiste do an in-depth research on the coin you want to invest te. The best kicking off point is the announcement pagina of the coin.It shows all the significant information you need to know: total coin supply, technical details, development plans, mission statement, community speculation, and a loterijlot more.
Just google “coin-name ann” and go to bitcointalk.org forum announcement thread.
CoinMarketCap.com is another good source of information spil you will see all the crypto-coins listed along with market details, past time evolution etc. Other threads you can find information about crypto-currencies are: Top Gold Forum and InvestOpen.com
It is very recommended to read the whitepaper (usually available on the coin’s official webstek). Join their team on slack and ask them questions te case you have any. You’ll be astonished to see how engaging thesis communities are.
News te the crypto world spreads like fire. Thanks to Twitter, Reddit, Telegram and crypto-specific news webstek, you can stay up to date with what’s going on. Pay close attention to the news on Twitter te particular and make sure they are from reputed sources.
Learn to overlook biased sources and rumors. This is where pump and dump schemes take place, people postbode misinformation on websites and hope for people to fall for it.
Recently, the hoax of Vitalik Buterin’s (founder of Ethereum) death commenced spreading from 4chan, which ter turn crashed Ethereum price and wiped out $Four billion te Ethereum’s market value.
Don’t let thesis people get you, seek advice from trusted and unbiased sources, and make your investing decisions accordingly.
Set achievable goals
Cryptocurrency trading is not one of those get-rich-quick schemes. Set a realistic project of terugwedstrijd on your investment, it could be 5%, 10% or 20%. This market is very volatile.
If you don’t stick to your expected comes back, you’re tied to funk and make mistakes.
Spil the crypto veterans will tell you, setting up realistic long-term goals (2-5 years) will take you a long way te cryptocurrency trading.
#Trio – Start trading
You’re all set to trade. By doing your research, build up the right information at the right time and understand how it will interact with the market.
This will help you predict trends – whether or not the coin will rise. Also, look out for any technical analysis on the coin – examine charts and find patterns.
Ter a nutshell, this is exactly what you need to do – buy low, sell high. If the price of a coin you’ve bought goes up quickly, contant out into bitcoin and buy back again once the price goes down.
If it’s a coin that you indeed believe te – you’re certain of the idea, tech, and team – you’d want to hold on to that coin long-term because a good coin will always rise back up again.
Now wij get to trading. Here are some of the exchanges that you can trade on.
Each exchange has it’s own nuances and rules, so be sure you understand them before trading any significant amount of money. For example, you don’t even have to set up an account at ShapeShift. It feels weird ter the beginning, but after the very first transaction, it makes total sense.
There are a loterijlot of apps that can help you track all your crypto investments. My individual dearest is Blockfolio, available for both Android and iOS. It has major exchanges integrated into it and almost all the coins.
Lastly, greed can be utterly dangerous te trading. The more patient you are, the better you will do. Period.
No one knows what will toebijten to the markets tomorrow. Doesn’t matter how experienced a trader you are, you will make some mistakes and lose money.
Learn from those mistakes, get back up and make sure not to repeat them.
#Four – Takeaways
Investing te cryptocurrencies is a joy rail. There are a lotsbestemming of ups and downs. The community is super active and always willing to help you out.
Like I said ter the beginning, always invest within your means. No need to bury your life savings ter crypto trading. Wij are most likely living te a bubble which could burst at any time.
Don’t overreact when the market is doing good and fright when it is down.
Take it slow. Do your research before investing and most importantly, have joy trading.