Crypto industry is currently passing through a bearish phase given the back-to-back crashes in May-June 2022. While that sounds bad news for the industry, the crypto experts have predicted a bullish trend in the coming year and after that. On another hand, as the crypto prices are still low, it provides a wonderful opportunity for aspiring crypto traders to enter the world of crypto trading. This way, you can buy crypto at low prices and sell the assets on high when the market will surge up in later months.
There are different trading platforms to enter the world of crypto trading, such as crypto exchanges, OTC platforms, and P2P trading platforms. Among all these, crypto experts mostly advise to go for crypto exchanges to enter the world of crypto trading.
Steps to choose as you plan to enter the world of crypto trading
Do your research
Crypto is a new and complicated world for traders and investors. Thus, you should proceed with in-depth research on the crypto world and related businesses. You need to gather a clear understanding on how the trading platform works, the different cryptocurrencies, and the technology behind the crypto industry.
Find your coin
A lot of people would advise you to register with an exchange first as you aspire to enter the world of crypto trading. But, technically, your first step should be to select the right coin prior to signing up with an exchange. According to crypto experts, you should maintain a diversified trading and investment portfolio. But, since you are new to the scene, it’s better you start with one coin or token. You need to check your compatibility with the crypto world. If you feel comfortable, you can always add in more coins or tokens to your portfolio later.
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There are certain things to remember while choosing your coin as you plan to enter the world of crypto trading.
- Strong fundamentals
- High ROI
- Functional use case
- High market cap
- High trading volume
- Fast rate of recovery from a crash
- Listing on big exchanges
Choose a reliable exchange
Now, you will proceed to find a compatible exchange to enter the world of crypto trading.
There is no dearth of crypto exchanges around but not all would be compatible for you. Thus, you will have to be selective while choosing the right crypto exchange to enter the world of crypto trading.
Here are some tips to follow while choosing the right crypto exchange-
- Great market reputation
- Listing of a long line of cryptos, including new promising altcoins
- Updated security features like 2FA authentication, cold wallet storage, and so on
- Provision of compensation for lost funds, in case of hack
- Lower fees
- User-friendly dashboard
- Allows traders from your country
Let’s assume that you have already selected your preferred coin to enter the world of crypto trading. Now, after you find the right exchange, you will sign up with the platform.
Choose payment mode
Crypto exchanges generally allow a diverse range of payment options. You can choose from credit/debit cards or bank/wire transfer. The other option is wallet money.
If you choose card transfer, you will be able to receive the purchased crypto immediately. But the problem is that card-based transactions generally charge a wide range of fees that you don’t have to encounter with other payment modes. In regard to common fees, card transfers generally incur higher fees in comparison to other payment modes. Thus, if you have to trade in a rush, you can choose card transfer. But, if you can afford to wait for a few days, go for other options.
Another thing to remember here is that not all crypto exchanges accept fiat money. Only the centralized exchanges allow payment via fiat. As you are new to the crypto world, it’s likely that you would have spare crypto to buy crypto to enter the world of crypto trading. Thus, look for a crypto exchange that allows fiat payment.
Find a trading strategy
Depending on your chosen coin and the condition of the current market, you can choose from a wide range of trading strategies. If you have chosen a legacy coin, you can try position or long-term trading. In this case, you will buy the coin and wait for a few years for the coin to incur a magnified value so that you can sell it at an amplified price.
But, if it’s a meme coin, you never know about its sustainability. In that case, you can try day trading. Another popular trading option is leverage trading where you will trade with lent funds. But, this particular trading strategy is extremely risky and hence should be tried once you attain a certain level of experience in the trading world.
Store the crypto
You might not trade off the entire bunch of crypto that you buy immediately. A smarter option would be to save the larger portion for long-term trading and utilize a minor bunch for immediate trading, such as day trading. The maximum portion should be kept in a cold wallet to keep the hackers at bay. The portion that would be allotted for day trading should be kept in the exchange’s hot wallet. However, your exchange might not allow fund transfer. In that case, you should make sure that the exchange has adopted a cold wallet and keeps 100% of user funds there. buy coin
Crypto trading is no cakewalk but it’s no rocket science either. It’s just that you would have to be a little strategic and cautious in this case. When you are starting out, don’t allot more than 2% of trading capital. Also, it would help a lot if you can sign up with a crypto trading course. It will help you to gain a better understanding of the crypto trading market, the strategies, the exchanges, and more. Look for a course that offers live examples of the entire crypto trade. Also, settle for a course that is ready to offer money-back guarantee and free trial.
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