Crypto trading beginners guide, how to start?
Here is the Crypto trading beginners guide.
The development of blockchain technology brought many changes to the way of business with internet media.
Crypto trading has become a lucrative branch of business.
Before starting a business, knowing the ins and outs of the business is very necessary, how it works, how to start it, and other questions related to the start of the business.
There is no doubt that today the world of crypto has attracted many actors from individual investors to large companies.
They are a high interest in the development of blockchain, crypto trading and all about crypto.
The growth of cryptocurrency market capital has led to a new style of trading in the financial world.
If you are interested in starting your journey in crypto trading, we will study it in the Crypto trading beginners guide.
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Crypto trading market
Crypto trading beginners guide
We know that the use of blockchain technology has begun since 2009.
At that time there was the only bitcoin that became the first digital currency.
While discovering bitcoin is an anonymous person named Satoshi Nakamoto.
Then after bitcoin whose value gradually rose.
Another digital coin emerged which was also based on blockchain technology, namely Ethereum, Litecoin, Namecoin and so on.
Even now there are thousands of digital coins that have entered the market, thus making the cryptocurrency market even greater capitalization.
Every day more than a billion-dollar transaction has occurred on the cryptocurrency market.
So it is not surprising that many forex traders who then also enter into cryptocurrency trading because it is very tempting.
The way of trading is also similar to trading forex in general, which is buying or selling cryptocurrency one with another.
In crypto trading, you need an exchange, which as a bridge between buyers and sellers, same as the forex market, crypto trading is also in pairs.
For example, you will sell Bitcoin to get Ethereum, the symbol is BTC/ETH, the exchanger will find a match with your order.
Exchangers will charge fees for your transactions according to each exchanger’s policy.
Or you can also use broker services that provide crypto account services, for example, TenkoFX is our sponsor, that also you can trade cryptocurrencies, you can buy BTC, LTC, ETH, XRP, BCH, etc …
Short-term and long-term trading styles crypto trading
Crypto trading beginners guide
Cryptocurrency trading can also be done by short term trading and long term trading.
It depends on the trading habits of each trader because both have advantages and disadvantages.
Short-term trading is that you buy or sell a cryptocurrency pair and then close a position for only a few minutes or hours.
Your target is not too large but can take advantage of rising and falling prices in the short-term swing.
Short term trading advantage
The main advantage of short-term trading is the possibility you get a fast, high gain.
But the difference in risk when you trade crypto through an exchange.
The risk is smaller but the potential gain is also small because there is no leverage system.
In contrast to margin trading through a broker (TenkoFX for example).
The potential for higher profits but also high risk, some exchangers currently have also offered margin trading with leverage.
With short-term trading in a day, you can make several transactions to buy or sell crypto pairs.
So the possibility of accumulation of profits is also high, but of course, this depends on your skill to analyze crypto pairs.
Interestingly, there are now thousands of cryptocurrencies, and you can choose which ones have the potential to provide future gains.
This will certainly affect the trading volume which is an important measure in market capitalization.
Because with the increase in trading volume, the market will be liquid so that the velocity of money will be quick from hand to hand.
Short term trading disadvantages
Short-term trading can upset your emotions, this requires extra patience, and also the ability to analyze movements with high accuracy.
And this is not easy in high volatility, making the vulnerability of price changes will occur so quickly, it may occur after you buy, instead, the price drops.
If you are impatient and unable to control your emotions, you will quickly panic and be reckless in trading.
And also to get high profits, this requires a large transaction volume that can make traders less comfortable.
Long term trading advantages
Long term trading refers to buying a crypto asset and holding it for a long period of time, with the expectation that in the future the price or value of the asset is more valuable than it is today.
There is a term that is quite interesting in crypto trading that may not all be familiar with this term, Hold On for Dear Life or HODL.
One advantage of long-term trading is that we are not too stressed in analyzing assets.
It’s mean after choosing an asset that is considered to have the highest potential to increase its value in the future we can do other things not necessarily in front of the monitor.
For crypto trading with a long term trading style, you can start with a small amount of money, you can buy a crypto asset and leave it.
Long term trading disadvantages
Long term trading is far from trading pressure, but you will missing the good momentum that occurs in the short term.
For example, because there is important news related to assets that cause good price moves.
And also you have to have high patience waiting for your assets in the future.
This does not happen in short term trading, because traders can get profit or loss in just a few minutes or hours.
What is the best one?
Crypto trading beginners guide
After knowing the advantages and disadvantages of each trading style, then which is the best?
This depends on the condition of your ability in some ways, if you have good psychology, not easily emotional, short term trading promises faster profits.
Conversely, if you still don’t have strong psychology, then long term trading will be the best choice because it will lower the emotional pressure.
But both require good market analysis skills and a little luck.
A few things to know about cryptocurrency trading
Crypto trading beginner guide
For those who are new to cryptocurrency trading, knowing the following points is very important in utilizing platform trading from your exchange or broker
You need to understand about order types
On platforms provided by the exchange, there are function type functions such as market orders and limit orders, and also you have to understand how to stop orders work.
Market orders are type orders at current market prices, whereas limit orders are pending type orders at a certain price.
By knowing the basic types of orders, you can plan your trades for profit by adjusting your analysis.
Account security is very important, you must protect your account so that it does not get hacked.
If you lose access to your wallet, if this happens you will lose all your cryptocurrency assets.
Write copy your seed/pin onto a device kept offline.
If you use an exchanger, you should choose an exchanger that provides a high-security standard with 2fa.
The crypto market is very volatile.
At high volatility, it is possible to meet losses with dynamic price changes that occur.
You better have an understanding of technical analysis both with indicators or with candle patterns.
Invest according to your financial capacity and not all of them for crypto trading.
How to start cryptocurrency trading?
Crypto trading beginners guide
After understanding a few important things before starting crypto trading, in the end, you want to start immediately.
Before deciding to buy bitcoin through an exchange, you can monitor the market through their platform and learn how changes in crypto assets occur.
Learn first this will be better than in a hurry to start cryptocurrency trading.
Before choosing an exchange, there are some important things that deserve your consideration.
- The validity, Make sure the exchanger is available for your area
- Reputation, Find out if the exchanger gets good reviews from users.
- Exchange Rates, different exchangers also have different commission rates taken, exchangers who take low fees are preferred.
- Safety: safe exchangers usually require ID verification before using their services and using multiple-layer account security.
Open account Coinbase
Coinbase is a popular exchange among crypto players, you can start trading crypto from there.
Therefore the validity of exchangers in your area is important to be a concern, you need to check this.
Opening a Coinbase account the first stage you fill out the form requires data.
- First name.
- Last name.
After filling in the registration form and agreeing to the terms and conditions, and proving you are not a robot, the next step is to click create an account.
Next, you need to verify the telephone number for additional account security.
You need to write down your telephone number and you will receive code through a message that you must enter in the box provided to verify.
Add payment method
Before starting trading, you must complete the account by adding a payment method.
In the payment method option, there are two choices of bank transfer or credit/debit card.
The next step is to verify identity because Coinbase is a regulated company, they obey the KYC/AML rules.
Click upload ID, and you have several verification options with driver licenses, or passports or can with country ID.
Next, you are asked to upload an ID, you can use a webcam, mobile camera or file upload.
If the image that you upload is accepted, there will be a successful notification, but if the image is unclear you must repeat the upload again.
The next step is to complete the payment method.
In this example, we choose to use credit/debit cards.
You need to fill in the billing address for your credit/debit card
The final step is to complete your credit/debit card data, not to worry because the data you entered is encrypted.
After this process is complete, you have now completed an account verification, added a payment method, and finally, you can start buying bitcoin on Coinbase.
Buy Bitcoin at Coinbase
To buy Bitcoin you log in to your account, at the top of the dashboard click Buy/Sell.
Then you choose Bitcoin
Then scroll down to fill the flat currency, you can buy the amount you want to spend, for example, 150 euros.
The platform will automatically convert to the Bitcoin value that you will receive.
Then click buy bitcoin instantly, then you are faced with a payment method, confirm the payment card you have chosen and click confirm to complete the order.
Now that you have bitcoin on Coinbase, you can forward to open an account at Binance to start trading
Open account Binance
Besides Coinbase, there are still many exchanges that provide cryptocurrency trading services.
Binance is also one of the major exchanges, and even though hacking has taken place few years ago, but there are still many who believe in this exchange now.
Please read the Binance review for more information.
Opening an account at Binance is also simple. You need to type an email and password.
After opening a Binance account you can make a bitcoin deposit from the Coinbase you just bought.
The steps are as follows below.
- Log in to a Coinbase account and click accounts in the top screen then click send.
You will be asked to enter the address of the wallet where you will send bitcoin.
- Back to the Binance account and scroll the mouse at the top of the screen by clicking Funds, then selecting a deposit.
- Click select deposit coin and select Bitcoin.
- Then you will see the address of your bitcoin wallet, and then copy-paste in Coinbase
- Back to Coinbase account and enter how much bitcoin will be sent and paste the Bitcoin Binance wallet address, then confirm your order.
- You only wait for bitcoin to be sent to the Bitcoin Binance wallet, about 15 minutes you wait patiently.
Once you have Bitcoin at Binance you can go to the Binance market and make your first order.
Other exchanger options
Crypto trading beginners guide.
In addition to bitcoin trading on Binance, you can choose other exchangers which you think are the best and are available in your country, please choose the best exchanger.
Another option for crypto trading is to use a forex brokerage service that provides crypto account types.
The platform used is MetaTrader 4, so for forex traders, who choose crypto accounts at a broker, they are familiar with using this platform.
Faq about crypto trading
1. How do I learn crypto trading?
Many sources of information for learning crypto trading, but the best teacher is experience.
To start you need an exchange where you will buy and sell crypto assets.
2. How much money do you need to start trading Cryptocurrency?
Most exchangers give a minimum of $ 10 to start trading, but that is too small for a profit to be worthy.
100 $ is also still considered small to start trading crypto, ideally 1000 $ is enough for serious trading.
3. How do beginners trade Bitcoins?
Open an account at an exchange or broker, verify the account, deposit the account and start trading.
4. Is crypto trading legal?
Globally there are no official regulations for crypto trading.
But this trade is through exchangers and there are many investors entering the industry, although they do not yet have legal status, but are accepted by many circles.
5. Is crypto trader safe?
Although not yet legal, crypto trading is safe, easy deposit and many payment options.
Crypto trading is alternative trading besides stocks and forex.
For forex traders who have experience in forex trading, it will be the same as crypto trading, the method of analysis and trading.
But this is also risky because dynamic market changes will make a person experience a loss when the position against the trend.