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How to start cryptocurrency trading in 5 practical steps 2022

 

How to start cryptocurrency trading in 5 practical steps 2022

In other articles we have talked in detail about cryptocurrency trading in detail, moving from one topic to another to provide you with all the information you need in order to understand cryptocurrency trading.

How much do you need to start crypto trading


But there is one thing we haven't discussed yet, which is how to get really started in cryptocurrency trading and apply all the information and tips that we have given you during this article series.


That is why in this article we will discuss the actual way to enter the world of trading through five simple and clear practical steps.


It may seem a bit complicated and confusing at first, but don't worry, I guarantee you that after reading this article, the whole picture will become clear to you, and you won't find it mysterious anymore.


We have summarized all that is required of you to do in five easy and clear practical steps, and you can follow them in order in order to enter this world and start profiting from it.


Step 1: anything is always the hardest. Getting to know this world and getting used to its terms and ideas can seem a bit heavy at first.


But after some time you will become familiar with these strange terms, you will be very curious about them and you will want to know more and more about the subject.


In the end, trading is not in any way like making missiles or learning medicine, it is much simpler than that, and you can consider this stage of learning as learning “A.. B”, where you will only need to link things together.


Fortunately, there are tens, if not hundreds, of thousands of sources on the Internet, and you will not find it difficult to find them. On the contrary, it will be difficult to choose among them due to their abundance.


Of course, foreign sources are the best, most professional, and accurate, but if your English does not support you to read these sources and learn.


So, do not worry about the language barrier at all, just browse the winner's site, and even if you did not find an article on a topic you want to know more about or want to expand on an article we have already written, just contact us and we will be happy to write a specific article for you.


There are also many online courses and training courses on the Udemy platform that you can buy and benefit from.


And if you don't want to pay for these courses, YouTube is full of many professionals who will be happy to pass on their expertise to you.


Personally, I think that you should not pay any money without a good understanding of what digital currencies are, the economics related to them, and how they work.


Also, learn about the difference between investing and trading in cryptocurrencies, the different types of cryptocurrency trading, and the platforms through which you can trade.


Finally, you should familiarize yourself with the principles of methods of analysis, whether technical or fundamental and the most famous strategies for trading.


Of course, that's not all, the world of trading is very wide, but this will be a good start for you to survive in the crypto trading ocean until you become one of the sharks.


Step 2: Choose the right trading platform for you

There are hundreds of cryptocurrency trading platforms these days, each one of them has many advantages and also a lot of disadvantages, and here is your turn to choose the best one for you.


And you will always find there is an eternal quarrel between fans of these platforms who are trying to talk about the best trading platform out there.


But there is no such thing, it is not possible to say that there is a platform that is the best in the absolute, but the issue is a relationship of proportion and proportion between the platform and the trader.


So take the time to study and compare between these platforms until you find the best station to start trading from.


We have dedicated a previous article that talks about trading platforms and compares their features and advantages, and I have put the link to it for you at the beginning of this article.


In general, there are many factors that you can compare or prefer between one platform and another according to it, such as:


a) cryptocurrency provided by


There are many digital currencies on the Internet, and although almost all platforms support the two most important currencies Bitcoin and Ether (which is part of the Ethereum system), if you want to diversify your investment and trading, you should deal with other currencies.


Here comes the role of the platform in providing a variety of digital currencies for you in order to meet all your needs and support your trading strategy.


For example, a day trader may need to trade some AltCoins in order to get bigger profits.


b) Years of presence in the market


Of course, the more reliable and well-known the platform, the better. The reputation of the platform and its presence in the market is some of the most important factors that I consider when choosing my trading platform.


c) Platform-specific costs


Cryptocurrency trading platforms are not charitable endowments but rather companies that were established for profit, and therefore they impose many costs and commissions on traders.


Each trading platform has its own system for imposing costs, some of them impose fixed costs, some put rates, and so on.


So, before dealing with any platform, you should carefully study it and understand its cost system.


d) Methods of payment and receipt of profits


Make sure when you choose your platform that you choose a platform that facilitates the procedures for pumping and withdrawing funds from your account.


For example, if you prefer to deal with PayPal or Payoneer, check the platform first, or if you prefer to do this directly from your credit card, also make sure that this option is available first before you start dealing with it.


e) Trader reviews


Trader reviews are one of the best ways to help you choose the best trading platform for you. They are your true mirror of all the advantages and disadvantages of the platform, so do not neglect to read these reviews carefully.


Step3: Create your account on the platform

This step will be very easy, all you have to do now is to create an account for you on the platform and follow the registration procedures.


Most likely, registering an account for you on the different trading platforms is completely free, and you will need simple things such as an email, phone number, and some other personal data, but some platforms need many additional things in order to register you, for example, a national number card or a passport.


You will also likely need to enable 2FA or 2-factor authentication in order to provide an extra layer of security for your account.


This step is very easy, and if you encounter any problems, you will find many videos and articles explaining how to register, or you can even contact the customer service of the platform.


Step 4: Choose Your Wallet

As I told you before; It is dangerous to keep your coins on the exchange, whatever it is, you might get hacked and lose all your money, so you should deposit those coins to an external wallet that keeps your cryptocurrencies - your money - safe.


In general, digital wallets or digital currency wallets are the things that you keep in your digital currencies such as bitcoin, just like your wallet in which you put money, whether you carry it or electronic wallets on your phone so on.

There are two main types of these wallets:


1. Hot Wallets: These are wallets connected to the Internet, which are often called software wallets.


They are available on mobile phones, browsers, or even desktops. These wallets are fast and easy to handle, but they are not the best in terms of security.


2. Cold Wallets: These are wallets that do not connect to the Internet, which are a bit slower and more difficult to deal with, but are more secure than hot wallets.


These wallets contain two types, either hardware wallets or paper wallets.


There are many options for these wallets, the most important of which we have mentioned in the article we previously mentioned above.


In general, traders prefer either mobile digital wallets or hard wallets, and I personally recommend hard wallets because they are the safest.


Before choosing the wallet you want, you should do some research until you arrive at the right choice that is right for you.


And if you want us to write a dedicated article about the best digital wallets that traders use, just mention it in the comments to the article.


Step 5: Follow a strategy or plan to trade your cryptocurrencies

After you have completed the previous steps and bought your cryptocurrencies, the last and most important thing left for you is to trade.


Cryptocurrency trading is not random at all, and if you try to do it without a plan, I guarantee you will lose your money and fail miserably.


You have to know exactly what you're doing and know why you're doing it and not doing something else, and while what I'm saying seems very self-evident, a lot of beginners don't do it at least at the beginning of their career.


The first thing you have to do is to choose the way you trade, yes, as you know there are many types of ways to trade, on top of them:


a) Day Trading

This type of trading, as you know, is based on the rapid buying and selling of digital currencies that take place within one day, and it depends largely on the experience of the trader and his ability to read the market indicators.


This type of trading may not be the most suitable for beginners as it requires a lot of focus and knowledge, but it also has its advantages that we talked about before.


b) Scalping

The other type is scalping which is very similar to day trading, except that it happens much faster in minutes or even seconds, which is also not the method I recommend for beginners.


c) Swing Trading

And now with the best trading method for beginners, swing trading, in which the trader holds the cryptocurrency for some time.


The goal is to buy currencies at the lowest price, and then sell them at the highest possible price so that you get the largest possible profits.


The advantage of this type of trading is that you do not need the experience required for day trading or quick speculation, and you do not need to monitor the currency market intensively around the clock, as its duration ranges from days to weeks.


I recommend this method to every newbie who wants to make his way into the world of cryptocurrency trading.


After this you will have to decide which trading strategy to follow, trading has so many strategies that it would be difficult even to collect them in one article.


Determining the appropriate strategy for you depends on many factors, the most important of which are:

  • Your level of experience and knowledge about trading.
  • Your personality and the time you can devote to trading.
  • The loss you can afford and your ability to risk.


The strategies differ a lot among themselves, although many of them are financial strategies, there are also strategies that depend on the behaviors and psychological factors of other traders.


You can choose the strategy that best suits you, and then make some adjustments to suit your circumstances and capabilities.


You can find these strategies by following the big traders on social media or YouTube, or through training courses, or even through articles and explanations.


And maybe in the winners, we can offer you an article that combines the most important of these strategies, just tell us in the comments and we will prepare it for you.


After you choose your strategies, you have to prepare your trading plan, make a risk management plan and constantly develop your strategy and plan.


The trading plan will be very beneficial to you, as it will reduce the stress and pressure on you, and you will know the next steps for you.


Make sure you leave your feelings out while you trade, and put this into your plan, the important thing here is to continue trading responsibly and follow the plan.


The moment you give in to feelings, such as fear or greed, you will lose a lot of money, and we have talked about this in detail before.


Also, do not forget to put in your plan this continuous learning, you must follow everything that happens in this world, as it is constantly changing every day.


Conclusion


Cryptocurrency trading is a never-ending challenge whether you are a beginner or an expert, but fortunately, the outlines of this trading process are clear, and just everyone disagrees on the details below.


In this article, we have explained those outlines in detail, and we have provided you with five main steps to get started in cryptocurrency trading, as a reminder, they are:

  • Learn the basics you need to trade cryptocurrencies.
  • Choose the right trading platform for you.
  • Create an account for you on this platform.
  • Choose the digital wallet that you will use to hold your cryptocurrency.
  • Follow a strategy and plan for trading your cryptocurrency.


I hope we have effectively helped you to know everything you need to get started in cryptocurrency trading, however you can ask us about anything you would like to know about trading and we will get back to you as soon as possible.


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