Cryptocurrency Trading Tips for Novices
Do you want to invest in cryptocurrency? You’ve come to the right place. Read on for some basic tips, tricks, and suggestions for your first cryptocurrency trade.
Having set out on my adventure in cryptocurrency trading I was soon confronted with a pretty steep learning curve. Before you jump into things with both feet, here are some helpful tips to get you started on the right path.
Set Specific Goals
Cryptocurrencies are extremely volatile and open to high levels of manipulation. If you want to make money, think long-term and set specific goals for your investments. Do not get sucked into the hype created by other traders who are trying to encourage you to buy at their chosen price or time.
Study up on Market Cap
The price of any cryptocurrency is nothing more than the current market cap, calculated by multiplying the current price with the total number of coins or tokens in circulation. Do your research and make sure you are always updated on what factors influence the value of a certain coin.
Do not use Margin Trading
Margin trading is the act of using borrowed money to increase your buying power. This is extremely risky and should only be done by experienced traders who fully understand the consequences. With cryptocurrency, there are no regulations so if you go belly-up it’s gone for good.
Protect your Coins with a Hardware Wallet
One of the most secure ways to store your coins is by using a hardware wallet. These are physical devices that can be connected to any computer through USB or Bluetooth and allow direct transactions via an encrypted channel. Although they cost a little bit more, they are worth the investment.
Do not Trust New Exchange Sites
One of the best ways to secure your coins is by storing them offline in a hardware wallet. When you want to buy or sell, connect your device and complete the transaction on the exchange website. Many new sites are popping up every day with little to no reputation. If it’s too good to be true, it probably is.
Cryptocurrency trading can be extremely profitable, but you have to learn how to ride the waves. It’s a very volatile market and it will take some time before you learn how to spot an opportunity from a red flag. Do not get discouraged if you see your investments going down, sometimes the best moves are made when the prices are low.
Your goal should always be to make a profit, but if you can’t manage that with cryptocurrency trading you might want to consider other ways of making money online. There are plenty out there! Good luck and happy trading!
I hope these basic tips help you get started. Thanks for reading!