- January 7, 2022
- Posted by: admin
- Category: Learn
beginners guide to successful trading: Over the years, cryptocurrency has become one of the most popular financial ventures. Cryptocurrency is also known as crypto, and it is a form of digital currency that is not regulated by any central authority or governmental bodies. Hence, you don’t need to go to a bank to trade cryptocurrency, and it solves all the shortcomings associated with local currencies. Cryptocurrencies are created using cryptographic techniques through which traders can buy and sell securely and successfully.
beginners guide to successful trading
Nowadays, cryptocurrencies serve as an investment vehicle more than any other thing. Cryptocurrency is a gold mine that only the fierce and patient can profit from if done wisely. Bitcoin is the first successful cryptocurrency introduced to the world in 2009 by Satoshi Nakamoto. Bitcoin has often been referred to as “digital gold” because of its spontaneous increase over the years, which has yielded high profits for investors.
When Bitcoin was first introduced, it was valued at a little less than a fraction of a penny. In 2011, it rose to a dollar, and since then, there’s been a very significant increase in its value. In November 2021, Bitcoin reached an all-time high of $68,990. That means if you had purchased 1 Bitcoin at a dollar in 2011, you would be reaping more than 1000% percent in profits by now. The success of Bitcoin has encouraged the creation of other cryptocurrencies. Currently, over 5,000 different altcoins are serving over 20,000 markets.
beginners guide to successful trading
Is cryptocurrency a sound investment plan?
The value of cryptocurrencies is volatile. Many factors like the demand and supply of the coin affect the prices of cryptocurrencies. Still, cryptocurrency is a good investment plan, especially long-term. Most professional traders might discourage you from trading because of the market’s volatility, but it is always worth the risk in the end if you are patient. By finding the best crypto investment platform, you become ahead of any future liquidation.
Beginner’s guide to trading successfully.
As a beginner, you must trade with an open mind and without bias. Currently, Bitcoin and Ethereum might be the most popular cryptocurrencies, but other coins can also yield you profit in the future. Read the guide below to help you trade successfully.
Create a cryptocurrency brokerage account
As a beginner, you will have to create an account with a crypto brokerage before starting trading. Some of the best crypto trading platforms in the market include Coinbase, Binance, and Gemini. You will find a myriad of crypto investment platforms to choose from.
All you need to create an account is your personal identification information, social security number, email address, mobile number, and residential address.
Invest funds in your brokerage account
After creating your account, the next step is funding your account. You will need to link your local bank account with your brokerage wallet to allow easy funding.
Buy cryptocurrencies – beginners guide to successful trading
This is the most delicate step because most beginners are usually confused about what coins to buy that would yield immediate profits. The first choice for most beginners is usually bitcoin and ethereum because they are trendy. However, other altcoins will generate earnings in real-time than significant market cap crypto, which is why veteran traders typically opt for them. Although these smaller altcoins are pretty risky, they offer high profits. Over the years, there have been situations small altcoins have increased in value by over 1000% within a few months. In this vein, you have to study the market by checking coin trends and their market caps before deciding on the coins to buy.
Choose a strategy
There are three well-known trading strategies in cryptocurrency, including smart trading, automated trading, and HODL.
- Smart trading: The significant advantage of intelligent trading over the other strategies is that it gives the trader an edge over their risks and returns, which can help them plan better positions. There are different trading option combinations in smart trading, but the most lucrative are profit and stop-loss. While stop-loss limits the losses when the market value goes south, accepting profit ensures that you profit when the market is booming.
- Automated trading: if you want a strategy that would yield daily returns from the trading platform, this strategy is for you. For this strategy, you will need a crypto trading robot to analyze the market 24/7, identify the best trading options, and make profits for you even as you sleep. In a way, automated trading is less tedious.
- HODL: HODL is the most popular trading platform amongst crypto traders. HODL is the short form for HOLDING. With this strategy, the possibilities of losses and profits are unlimited. You need to buy the coin without setting the take profit or stop loss option. This strategy doesn’t yield quick returns like the other strategies, which is why you need to consider the risk before investing. When using this option, it is advisable to buy coins when their prices are low and take the profits whenever it increases drastically.
Store your cryptocurrency
To store your cryptocurrency, you will need a cryptocurrency wallet. Cryptocurrency wallets are software or hardware wallets in which cryptocurrencies are stored. You can find either type online and keep your cryptocurrency securely.
Cryptocurrency is yielding profits for many people around the world; it is only fair that you enjoy it too. Follow the steps above and ask questions whenever you are confused to prevent mistakes. Visit croft financial for further enquiries into the best crypto investment options.