Beginners guide how to start trading cryptocurrency.
All the stuff you need to know to start trading crypto. Things like: crypto wallet, crypto exchanges, diversification and others…
1. Cryptocurrency wallet
2. Choose cryptocurrency exchange
Cryptocurrency exchange - place where you can trade and exchange you cryptocurrency for the other cryptocurrencies and fiat currencies like US or EUR.
A cryptocurrency exchange isn’t a part of regular stock exchange. Not the same as Forex or Wall Street, but they have some common mechanism. You can pick up a crypto exchange from top 5 list cryptocurrency exchanges ranked by volume.
For begginers the best option might be superorder.io.
Superorder is a trading terminal where you can share your strategies with friends, track your portfolio and run conditional strategies within 1 minute.
Trade with 0% fees.
Also when you are choosing crypto exchange, do not forget to pay attention and compare cryptocurrency exchanges fees among other things. You can have more info and more clear understanding about what crypto exchange feets you here.
Similar to investing. To lower down possible trading risks, DO NOT PUT ALL YOUR MONEY into one cryptocurrency otherwise if this currency will fall down, you might lose all your money. Best option is to diversify your portfolio. While some cryptocurrencies might fall down, other might grow.
Before you investing do a research about each coin you want to buy.
There are thousands of coins - means lot of research. Start with few and slowly adding new coins.
Pro traders are pointing out three main factors to define cryptocurrencies:
- Large cap — top 5 coins
- Mid cap — coins bigger than $200 Million
- Small cap — coins smaller than $200 Million
You can choose large coins by market cap at coinmarketcap.com.
Build your portfolio with any proportions you like for ex: large cap 33%, mid cap 33% and small cap 33%.
4. Buy fractions.
There is no reason for buying the whole coin, you can buy a fraction. Top coins are expensive, so consider to buy a small fractions of coins if don’t have a fat bank account.
For ex: instead of buying whole BTC, you can buy 0,45 BTC plus some ETH, LTC and others.
5. Don’t invest your last money.
Just remember that there is always possibility for market crash.
Always use a 2-factor authentication. If you will get cheated and someone will steal your coins there is nothing you can do about it.