DavidSome countries are actively supporting cryptocurrency trading and mining which shows that just as with things before it such as the internet, many people have hope that it will become the next big thing and want to get in on it while it’s still fresh and the barrier of entry may not be as big as it could be down the line.
If you’re one of these people and are new to the world of crypto coins then this guide should help get you started and understand the basics of how to trade and what to look out for.
- Research what you’re going to invest in
While this may seem obvious to some, it’s important to reiterate as it’s an even bigger deal when you’re new, and even more of a big deal in crypto where the markets are incredibly volatile when compared to the stock market for example. Do all the research you can on a given cryptocurrency before deciding to put your hard-earned cash into it. It’s better to miss out on some potential profit due to staying safe than to lose all your money because you rushed your investments. Take it easy and take your time.
- Risk management is money management
Risk management is a term you’ll see thrown around a lot when discussing the trade of coins, but for good reason. Depending on what you want to do you need to define the risks you’re willing to take and the strategies you will employ. If you want short-term profits then make a comprehensive list of rules for trading. If you are going for long-term profits then you need to be able to hold out and not sell for extended periods. The risks are different for everyone and you need to define them for yourself to be able to avoid making the mistakes that may cost you a good chunk of change.
- Only invest what you’re willing to lose
This isn’t a crypto exclusive tip but it’s one that needs to be stated. Any money you invest into something is money that you will potentially never see again. Don’t go investing your college funds or life savings into anything, especially something volatile like cryptocurrencies. As with any investment you need to separate a certain amount of funds that you are willing to part with in hopes of having them grow and the same is true here. Why take big risks when you can make good cash with minimal risks too.
- Stay on top of the news
It’s incredibly important in the world of crypto to stay informed of every new thing that pops up. Be it something like “Maiar exchange has good rates right now” or even something more general like “electricity prices are up so coin rates might fluctuate a lot today”. These are things that you need to know on time if you want the best shot at making the reads on what will go up or down and be able to make good cash.
Conclusion
The skill floor for cryptocurrency trading isn’t that high and you can get into it without too much hassle, but the most enjoyable part is that the skill ceiling is incredibly high and there is effectively unlimited space to improve yourself when it comes to trading coins. You never stop learning which is why we hope that this guide has given you a good head start for getting a foot in the door and then you’ll be able to learn the rest far quicker since you don’t need to waste too much time trying to wrap your head around the basics. Good luck with all your trades and make sure to enjoy the learning experience as it really is a fun ordeal.