Cryptocurrency trading for beginners

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10.06.2021 15:54
Cryptocurrency trading for beginners

    In the cryptocurrency market, you can multiply your money many times over in a single day and just as easily lose it all. 

    The cryptocurrency industry has a short history, and digital currencies are highly volatile compared to euros, dollars and other common currencies. Successful trading in digital currencies depends on a trader's knowledge of the market and its processes. Awareness of the peculiarities of cryptocurrency trading will help novice traders to reduce risks and succeed in the challenging but profitable business of trading digital currencies on exchanges.

    START TRADING

    WHAT TO START WITH

    Every trade starts with a starting capital. Anyone who can invest $100 in the purchase of a cryptocurrency can trade digital currencies. At the initial stage, this amount is enough to try your hand at trading.

    You don't need to invest all $100 in one digital currency. Even if it is bitcoin.

    Experienced traders advise investing no more than 50% of the entire investment amount in the first digital currency, the remaining half is best distributed among liquid altcoins - Etherum, Ripple and others from the top ten liquid digital currencies.

    EMAIL FOR CONNECTING WITH CRYPTOCURRENCY EXCHANGES

    No matter how much money a trader operates with at the start. Security of funds should always come first. Security starts with an email. An email address is required for creating a cryptocurrency wallet and registering with a cryptocurrency exchange.

    It is optimal to use a Google mailbox for this purpose. When creating a new account, Google's two-factor authentication procedure should be enabled, to protect the account from unauthorised access. It is recommended that you only use your inbox for contacting cryptocurrency exchanges, do not leave the address in news subscriptions or for accessing other resources not related to cryptocurrency. In a large number of emails, it is possible to lose an important message from a cryptocurrency exchange or receive an email with a malicious attachment, a computer program that gives hackers access to other users' computers.

    CRYPTO WALLET

    The digital currency has no physical embodiment. Cryptocurrencies are used to store digital coins, or rather keys that give the right to transfer digital money, using special software and devices called cryptocurrencies. 

    Cryptocurrencies are divided into 'cold' and 'hot' wallets. 

    'Cold' cryptocurrencies are special devices that are connected to the network for the duration of cryptocurrency transactions from or into the wallet. 'Cold' crypto wallets provide maximum protection for the owner's funds, but they are expensive.

    Initially, it is better to use a 'hot', permanently online, crypto wallet. Two variants of hot crypto wallets can be used - online and desktop.

    A desktop wallet is a program, downloaded from the developer's website and installed on a computer or laptop. Jaxx and Exodus desktop crypto wallets are well-received by users and can be downloaded from their websites. The advantage of a desktop wallet is that assets are stored on the user's device. The disadvantage is that the desktop wallet remains open when the user is operating the device on which the app is installed.

    Online crypto wallets are accessed through the online crypto wallet developer's website. Transactions using the online crypto wallet can be made on any device. The security of users' assets is the responsibility of the company that developed the crypto wallet and provides the digital coin storage service to users. 

    Handy crypto wallets for storing digital currency are offered by investment platform Broex.  Broex Crypto Wallet is a complete portfolio for novice crypto investor. The crypto wallet supports the storage of 30 digital currencies, gives the owner information about the current balance of the wallet.  The wallet is linked to a trading platform, the user can always buy or sell the required amount of digital coins. 

    WHERE TO TRADE CRYPTOCURRENCY

    The workplace of a digital currency trader is a cryptocurrency exchange. 

    Cryptocurrency exchanges are online venues designed to trade digital currencies. Traders place orders to buy or sell and determine the quantity and price at which they wish to trade. The transaction occurs when there is a suitable offer from another trader. 

    Cryptocurrency exchanges provide the trader with a trading floor and trading tools, with all the information about the current supply and demand on the exchange. The trader can analyze the market situation and determine the trading strategy with the help of charts of changes in the rate of the digital currencies traded on the cryptocurrency exchange. 

    There are more than three hundred exchanges and platforms for trading digital currencies in the cryptocurrency market.

    When choosing a marketplace to start trading, a novice trader should pay attention to the number of cryptocurrencies available, the registration terms, the deposit and withdrawal options. It is also important what language the cryptocurrency exchange works in. 

    Traders from Europe and North America should choose an exchange with an English-language interface. The simplicity of the interface is an important factor that influences the efficiency of the work.  A clutter of links with complex functionality can confuse the trader, and confusion affects the result of trading. The cryptocurrency market is dynamic, and the speed of making and executing decisions determines whether or not a trader will stay in the black.

    A newcomer should also try their hand at investing on Broex. The platform provides access to 30 selected digital assets and will help build an effective portfolio.

    Broex requires users to verify their identity when registering, which ensures extra security. The interface is in English, simple and intuitive.

    The Broex team protects data, customer assets, and servers with state-of-the-art security methods and techniques according to the standards accepted in the cryptocurrency industry.

    Broex has a low commission of no more than 1% of the transaction amount. For a beginner investor with a small initial capital, this commission percentage is a real gift. You can deposit and withdraw cryptocurrency wallet with a bank card.  Deposits and withdrawals are fast and without any delays.

    With Broex a beginner will understand how the digital currency market and digital industry as a whole work.

    HOW TO CHOOSE THE RIGHT TIME TO ENTER THE MARKET

    The best time to buy a cryptocurrency is when the price is falling. 

    During digital currency trading, such moments can occur several times during the day. The history of rate changes will help to determine whether the price decline is temporary and the cryptocurrency rate will go up or whether further declines are to be expected. 

    On cryptocurrency exchanges, the change history is shown on a chart. The chart can be a line chart or, like in the stock market, it can consist of 'Japanese candlesticks', rectangles that show how the price has changed in 15 minutes of trading.

    You need to learn how to read the charts to choose the right time to buy, and then when the price is rising, the right time to sell. The line chart is best for beginners.

    The chart line is not straight, it consists of peaks, i.e. price ascending moments and dips, i.e. price descending moments.

    Straights drawn through the sequence of peaks and through the sequence of dips form resistance lines and support lines. On these lines, the rate, when confronted with an obstacle, turns around in the opposite direction. 

    The reason why the rate reverses is that the support line has the price stated in most of the buy orders and the resistance line has the price stated in most of the sell orders.

    The resistance and support lines form a channel. The position of the channel relative to the chart shows which trend the cryptocurrency is in during current trading. An uptrend, where the support and resistance lines go up, indicates an uptrend; a downtrend, where the support and resistance lines go down, indicates a decline. 

    The direction of the trend will tell you whether to buy the cryptocurrency asset or wait to buy it. 

    CONCLUSION

    The cryptocurrency market is characterised by high volatility, the term used to describe the fluctuations in the price of an asset over a while. High volatility makes it possible with a small starting capital, not more than $100, to earn times more per month from trading cryptocurrencies. Success depends on the trader's ability to correctly predict cryptocurrency rates using rate chart data.

    Trading digital currencies is a highly profitable but risky business, and a crypto trader is required to be fully immersed in the trading process, even if there is little start-up capital in circulation. 

    START TRADING

    With trading experience, the income will increase and the amount of cryptocurrency investment will increase. 

    You need to take the first step. The environment in the digital currency market is conducive to that.

     

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