Cryptocurrencies were launched to disrupt the way people conduct value transfer in today’s time. The first cryptocurrency that made a breakthrough in this segment was Bitcoin. Surprisingly, it is still the number one cryptocurrency despite facing turbulent crashes in the market. Investors who chose Bitcoin in its early years reaped massive profits, which tempted others to join the cryptocurrency bandwagon.
The cryptocurrency market, in general, has always been highly volatile and has thousands of coins for trading. These factors make it overwhelming for many to make the right direction. The only problem that potential investors faced while proceeding in this direction was the lack of knowledge and guidance. If you’re planning to begin your crypto trading journey at the earliest, this guide will help you with the ways you can self-learn the art of profitable crypto trading.
From learning the fundamentals like what is liquidity to safer ways of picking the right cryptocurrency- everything should be learnt before proceeding with crypto trading. So let’s quickly explore the ways to self-learn crypto trading shared below.
Start by Learning the Difference between Crypto Trading & Crypto Investing
Some people mistake the terms ‘crypto trading’ and ‘crypto investing’ and often use them interchangeably. Although the end goal of both is the same, i.e., generating profits, the ways they are conducted differ. In crypto trading, the outcome timing ranges from short to medium term, and traders generally hold positions ranging from some seconds to a few weeks.
But in crypto investing, the outcome timing ranges from medium to long term, and traders hold positions that range anywhere from a few months to years. Now that you know the difference between crypto trading and investing, you can set clear and realistic goals for your upcoming cryptocurrency trading journey.
Easy Ways to Cryptocurrency Trading
If you’re ready to begin your cryptocurrency trading journey, start by opening a crypto trading account in a reliable and top-notch exchange platform. The right platform will help facilitate smooth cryptocurrency buying and selling, preventing unwanted hassles.
Opening crypto trading accounts is simple; you just have to follow the instructions on the respective website. Once the account is created, follow the tips shared below to learn crypto trading while implementing.
Do Your Research
It may sound cliché, but researching diligently about your shortlisted cryptocurrencies is the first thing you want to do before buying or selling any cryptocurrency. Learn about the fundamentals of the cryptocurrency, news making headlines regarding the particular cryptocurrency, its blueprint for the upcoming years, the team behind its development, etc. The more information you have regarding a specific cryptocurrency, the better returns you’ll gain.
Experiment with Different Trading Strategies
There is no one person fits all crypto trading strategy that would work for everyone. You can keep reading the best crypto blog to determine which strategies to implement. If you’re a beginner, create a dummy account and start trading smaller quantities of a few different cryptocurrencies.
You will learn the market nuances and winning strategies as you actively trade. An excellent way to discover what’s working is by joining cryptocurrency forums, online groups, etc., and seeing what seasoned traders are doing.
Start with a Select Few Cryptocurrencies
Beginners should be careful about the cryptocurrencies they invest in. The market has over seven thousand cryptocurrencies, but very few are valuable. You should conduct your own research to make your own list of promising cryptocurrencies that are worth adding to your portfolio. Start with two to three cryptocurrencies and include more as you understand more about the market.
People with little knowledge about cryptocurrency trading should avoid investing in ICOs because their success rate is highly volatile. Pick a few cryptocurrencies that have been performing steadily in the market for the past few years to gain trading experience.
Don’t Pick Cryptocurrencies Based on FOMO
As someone new to cryptocurrency trading, it is easy to get tempted by recommendations from people that appear successful online. It is a mistake you should avoid at all times. Random recommendations will generally lead you to losses, so always avoid them. If you want to learn crypto trading correctly, make it a rule to always invest in cryptocurrencies you understand.
Learning Crypto Trading is a Long-term Game
You cannot expect to learn crypto trading profitably in the short term. But if you follow all the tips discussed above, you can learn it in a significantly lesser timeframe. Always remember that the entire cryptocurrency market is volatile and deep research is always the key to preventing losses.