The Ultimate Beginners Guide to Cryptocurrency Trading

Cryptocurrency is a notion that confuses a lot of people. It’s easy to understand, though: think of any cryptocurrency as a digital substitute for the real-world dollar, euro, pound, etc. There you go. It’s that simple.

Even though cryptocurrencies are easily fathomable, trading them is an entirely different story. Investing in them, again – it’s quite a hassle when you’re a beginner. We hope that this brief cryptocurrency beginner guide will clear out some of the issues you might have with trading and investing in cryptocurrencies.

How to Trade Cryptocurrency

Mind that the process is extremely simple, but as tempted as you might be to get to the bottom of it immediately, you must get a deep understanding of how cryptocurrencies work. You should also learn what they’re used for and know some precautionary measures you can take to make sure you won’t end up broke.

  • The first thing you have to do is create an account on an exchange market online. It can be Poloniex, GDAX, BTC-E or any other you might like better. Create a strong password no one can break.
  • Transfer funds into your account. You can do this by wiring the money via your bank. You can also use BitCoin (and you might actually have to). After you’ve completed this step, select whatever cryptocurrency you want to trade and make the deposit. Don’t worry if the money doesn’t show up in your account immediately. It takes a bit to be processed.

Now you can start trading. Go through the available markets and stick with the one you find most optimal. You can buy a cryptocurrency, then sell it for some other one. Do not place an order without analyzing the market first. The biggest issue with cryptocurrencies is the fact that they are volatile.

They can be traded 24/7, sure, but you have to keep your eyes peeled on the prices. They can drop or sky-rocket in a matter of minutes. If you have no background in trading, you should give yourself 2-3 months to acquire at least some minimal knowledge on how it’s done properly and safely.

How to Train yourself as a crypto beginner

The best way to experiment with trading a cryptocurrency is to use a demo account. BitCoin, for instance, offers the Plus500 platform, where you can trade USD and BTC. This practice will be extremely helpful in the long run because you’ll know how to predict certain market movements that would elude a beginner’s eyes.

You can also use the Forex Demo Account to familiarize with trading. BitCoin was introduced to Forex, so you can trade it on their platform. Practice as much as you need to improve your techniques.

Concluding Remarks

Cryptocurrencies are really no different from fiat currencies. They work in the same way. They only differ in their degree of volatility. This beginner guide is short, it’s true, but it contains all the information you need.

Before you trade, allow yourself to learn as much as possible about cryptocurrencies and trading in general. It will pay off when you make a profit on a regular basis.