Cryptocurrency Trading For Beginners

Cryptocurrency Trading For Beginners


Cryptocurrency trading usually has a fairly high barrier to entry. Although buying Bitcoin and Altcoins is within the reach of anyone with an Internet connection, in practice it is quite common for people to have doubts about how to start in this market and what possibilities there are in it.

On the Internet you can currently find a lot of valuable content that gives important recommendations and can even teach a person to operate.

At the very least, it allows new users to get by in the first stage, so that they can then continue to deepen thanks to experience or other alternative sources of knowledge.

Recommendations for trading cryptocurrencies

The first step to enter the cryptocurrency market is to understand how Bitcoin works. Blockchain technology is an advance that offers endless possibilities and is by no means limited to the world of financial assets.

Knowing what are the characteristics of Bitcoin and every other cryptocurrency in which you intend to invest, will be how you can really have an objective view of where the money is being deposited.

Many people invest simply waiting for a price increase without really understanding what Bitcoin means for the financial system . Those who seek high profits without prior market analysis are the most likely to lose.

How to get started in cryptocurrency trading

Depending on the objective with which you enter the market, it will be advisable to start with different strategies and steps.

As a general rule, it can be said that once the operation of cryptocurrencies and what they mean have been studied, it is decided whether this is a trustworthy investment or if, on the contrary, it is made for purely speculative or commercial purposes.

If you trust the possibilities of Bitcoin and some other cryptocurrency in the long term and you think that it can appreciate a lot in the future, then the optimal thing will be to make a portfolio that has a large part destined for savings.

It will then be time to look for a place to buy cryptocurrencies that has good opinions and suits what you are looking for. It is important to look especially at the conditions of acceptance that you may have in our country of residence, as well as the commissions that you charge and the cryptocurrencies that you have available.

Then, it will be necessary to decide if these cryptocurrencies will remain on the exchange, or if you will keep them in a cold wallet. That is, being you the protector of the private keys and having full responsibility for your crypto.

electronic commerce

If you have a business and want to accept Bitcoin as a means of payment, or start trading any other cryptocurrency, then you will need to learn about electronic payment systems that use these digital assets.

With this objective, it depends on each one if they intend to keep a part of the capital obtained in Bitcoin or if, on the contrary, the idea is to immediately convert it into a fiat currency to the world after the transaction is carried out.

trading operations

Another option to start trading with cryptocurrencies is to operate in the markets looking for profitability. That is, to trade . Trading is a technique that requires a lot of study and practice. Still, it's hard to get results.

The first recommendation to operate with cryptocurrencies would be to avoid all kinds of miracle programs, trading robots and everything that promises us profits automatically.

It is very difficult to be profitable taking the risks of trading if you do not have the appropriate knowledge and experience. So before you start, take some time to watch videos on technical analysis and learn even the basics to start trading play money on paper.

Once the first results have been obtained and you are used to how price movements work, it will be time to look for a good exchange where you can start trading with real money.

How to learn to trade cryptocurrencies

The general theory of analysis of traditional financial markets is applicable, with its differences, to cryptocurrencies. Any trading method or study that includes money management, candlestick analysis, and understanding chart patterns will be a very good start.

Then, to start having a deeper understanding, the next step will be to study the 'WyckOff' method and the 'Elliot Waves' theory.

There are many books that deal with these topics. Also, there is a large amount of didactic content on social networks. Once we know that it is necessary to learn, it is easy to do it.

Beginner mistakes to avoid

Although each person can make a different type of mistake and it would be impossible to group them all, we are going to list the most common ones that any new participant in the crypto market can face.
  • Buy another asset other than Bitcoin. The main cryptocurrency has had several ' hardforks ' that have led to several coins using the Bitcoin name. BTC is the trading abbreviation that you should look for to ensure that you are buying Bitcoin and not another asset.
  • Get into revenue sharing systems. Be wary of any place that allows you to invest in Bitcoin by buying a promise of future payment or constant profitability. Only buy in places that allow you to have the capital at all times.
  • Confusing the public key with the private key. The public key is our address and can be made public without any risk to the wallet. The private key, on the contrary, is what allows access to the capital, so it must be protected and never shown.
  • Speculate with cloud mining. Cloud mining platforms are very attractive because they allow you to generate income passively. What happens is that we are giving our trust to a third party. With the alternative of ' Staking ', mining is only recommended if you intend to do it seriously by building a node.
With all this information we hope you can take your first steps in trading with cryptocurrencies. With the security of being clear where to start and what things must be taken into account.
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