Before you read our article it is important to realize that it takes some time to learn how to trade cryptocurrencies. At the end of the day, it comes down to you if you are willing to sacrifice a lot of time in order to understand how basic trading fundamentals work. Thus, our guide is only providing you a gross overview of what you should pay close attention to. Last but not least, you should be ready to lose money before you see the first profits since the cryptocurrency market is volatile.
A lot of newcomers jump right into “trading” cryptocurrencies without really understanding basic crypto terminologies such as FUD, FOMO, wallet, staking, ICO etc. You will have a hard time surviving long term in this market without basic crypto knowledge.
By knowing FA (Fundamental Analysis) you can determine if a specific project is valued correctly. Therefore, we recommend getting more information about the project’s future growth, earnings, revenue, team before putting money into it. With TA (Technical Analysis), on the other hand, you can forecast the direction of the prices through an analysis of the historical market data such as price and volume. Thus, we recommend using both (TA & FA) in order to have a higher success rate when trading a specific coin.
After you have learned the basics of cryptocurrency trading it is time to find a trusted exchange where you can transfer your fiat to crypto. We suggest using Coinbase or Cex.io for the beginning since they are both easy to use.
Now you can start looking for trading exchanges. We suggest using Binance or Bittrex for trading cryptocurrencies. Both are trusted and established exchanges that are not laggy. After you found your right exchange you can simply transfer your money to the exchange of your choice and start trading with the knowledge you have acquired beforehand.
Safety is sexy, especially when you are dealing with cryptocurrencies. Thus, we strongly advise you to get 2FA no matter where you created your account. Additionally, keep your crypto gains in a hardware wallet (Ledger or Trezor) in order to make sure that you are not an easy target.
On Tradingview or Twitter you can also learn from other traders who have built a good reputation. Just be aware that many are intransparent about their trading record and like to delete their market predictions when they don’t go as planned.
We hope this little trading guide encouraged you to make the necessary steps forward and helped you to understand what is needed to get started in crypto trading.
Safe trading everyone!