Cryptocurrency Trading: Everything You Should Know To Start

People invest in cryptocurrencies as they see immense wealth-building opportunities. But cryptocurrency trading may seem to be a tough topic for beginners. No panic! We prepared a compilation of articles on fundamental things to help you understand cryptocurrency trading.

Basics of cryptocurrency trading

Crypto trading is simply buying and selling assets at the right time. You may have participated in trading if you already purchased some crypto, feeling that was an appropriate moment to do so.

Learning trading cryptocurrency for beginners is all about being armed with the necessary tools and knowledge. Let's break down topics to consider and explore before getting started trading crypto.

7 things to learn to start with crypto trading

1. Set up a crypto wallet
It all starts with the crypto wallet. Having a reliable self-custody wallet helps keep your hard-earned money away from exchanges and make sure it's as safe as possible.

For extra guidance, visit our beginner guides:

• How to set up a crypto wallet

2. Know what you're stepping into

Blockchain basics: Starting to learn crypto trading begins with understanding the market: comprehending how blockchain works, what is DeFi, meme coins, — all that we post on our blog's education series.

Bitcoin is a good starting point: understanding how Bitcoin works gives a basic knowledge of how other altcoins function and act.

3. Choose the cryptocurrencies to hold

Apart from understanding crypto volatility and risks associated, it is crucial to research the tokenomics and underlying project fundamentals before adding it to your portfolio. Crypto with good fundamental evaluations generally leads to more profitable results.

Find more in our Guide to Smarter Portfolio Management.

4. Select an appropriate trading platform

Research centralized and decentralized exchanges (CEXs and DEXs), their policy, security, and fees. Centralized exchanges often fall under regulations and request your private data for KYC (Know Your Customer) procedures.

Binance is the #1 centralized exchange among crypto traders and investors. Coinbase is known to be more beginner-friendly. Some wallet apps like Arctic Wallet have basic trading tools integrated, quite enough for beginners to start with cryptocurrency without any hassle.

Image Source: Arctic Wallet App

5. Choose your trading style and strategy

Work out a personalized trading system that fits your crypto investment goals.

Long-term investments:

Passive trading is the least effortless approach of all. Passive traders stick to buy and hold-for-months-and-years strategy, also known as HODL.

Fundamental traders make their investment decisions relying on project research. They focus more on logic and facts, buy and hold strategy, and long-term trading methods.

Technical traders use graphs and charts and review historical data to consider when to buy and sell.

Shorter-term trading:

Day trading is taking advantage of changes in price and short-term positions. Price action trading is tedious and time-consuming — a little too much for beginners.

Swing trading is seeking short and medium-term gains, based on deep research, technical analysis, price trends, and general market patterns.

6. Learn the basics of technical analysis

Crypto traders, as well as stock traders, rely on technical analysis. Long-term holders may benefit from understanding tech details to find the best entry points. Reading cryptocurrency charts and identifying chart patterns & indicators is essential, as it helps to avoid investment decisions based on pure emotions. Other types of trading require more specific knowledge and skills.

Image Source: IBTimes

7. Store your holdings safely

Once you got some crypto, the most critical part is to keep it somewhere safe, ideally away from exchanges. Centralized cryptocurrency exchanges are an easy place to start. However, they are not the safest ones to store your crypto, as they take full ownership of funds kept on their platform.

Conclusion

Investing in cryptocurrency comes in as a great tool to gain some financial freedom and avoid the dangers of a failing economy. Yet, you must be all-prepared to mitigate the risks involved and approach investing with a cool head. Once you're packed with the basics of cryptocurrency trading, you're unstoppable! Especially if you never stop learning.

Keep reading our blog! And see you in the next educational posts!