What is Cryptocurrency Trading?
Cryptocurrency trading is a kind of digital asset trading whereas you buy and sell certain cryptocurrencies like Bitcoin and Ethereum for other cryptocurrencies or for your local currency, and vice versa; in the hopes of making profit.
What are the Types of Cryptocurrency Trading?
Also known as “day trading”; whereas you only hold your cryptocurrencies for a short timespan, usually for not more than a day. Short-term trading is mostly a lot safer than long-term trading, as your cryptocurrency holdings can dramatically rise or fall while you’re doing something else.
Long-term trading is a type of trading whereas you hold certain cryptocurrencies for longer periods of time, mostly from a few weeks to a few months, in the hopes of the prices to rise.
Is Cryptocurrency Trading Profitable?
It depends. Cryptocurrency Trading is profitable if you’re making the right trades, which will come through experience. A lot of pros and experts on trading does trading as their main income as it definitely can earn you A LOT of money if done well.
How do I learn to Trade?
You learn to trade by studying and learning from different sources and different people, and actually trying to trade yourself to get a feel on how the markets work.
You could study and watch videos on trading for 24 hours a day and 7 days a week, but wouldn’t learn much unless you try it yourself.
Some trading guides, articles, and videos will be listed at the end of the page.
Trading Tips for Beginners
Manage Your Risk
As you’re starting out, you’re most likely going to lost most of your trades. Keep your trading stack small for now, until you feel confident with your trades.
When prices significantly drop while you’re still holding some cryptocurrencies, sometimes panicking only makes your position worse. Analyze the situation, then calmly act accordingly.
Take Note of Fees
Always take note of the exchange fees of the exchanges when making your trades. Exchange fees are mostly in the 0.1 – 0.3% per trade, depending on the exchange.
Don’t put all your eggs in one basket. This is especially more important for long-term trades, to potentially decrease the risk of 100% of your holdings decreasing in price.
Take Your Time!
Make sure you understand the reading materials and videos before moving on. You might miss important tips along the way.
Don't Give Up!
Like stated earlier, you’re most likely going to lose your trades as a beginner. Don’t give up if you lose frequently. As you lose more of your trades, your experience and knowledge with trading improves.
Start Trading Now!
“Intention without action is useless.”