How to trade any cryptocurrency as a beginner – Complete guide

Cryptocurrency trading can be highly profitable if handled properly. But no profit comes for free and in case of trading or investing in cryptocurrencies you will need to study and read the news. It is very hard to stay ahead of the market, especially for cryptocurrency beginners. That is why I will give following tips which might help you with trading cryptocurrencies.

Always follow the news and public statements

Each news can significantly affect the price of a cryptocurrency. Therefore, it is only necessary for you to closely monitor it and act upon it. Which means that if you see for example, that China banned ICO, you have to count on the fact that the price of cryptocurrencies might at least slightly drop. The same goes for public statements of individuals or any other well-recognized entity in the finance world. Jamie Dimon, the CEO of J.P.Morgan is a great example of this. When he publicly stated that the Bitcoin is a scam which will eventually end, the prices of Bitcoin went rapidly down. He shared this opinion many times on several occasions, but later on, the cryptocurrency market realised that this is no news anymore and the price was not affected by it anymore.

Crypto beginners need to choose trading capital wisely

If you decide to trade cryptocurrencies, you should have a capital that you will not necessarily need and that you can always afford to lose. Every cryptocurrency is very volatile and the market moves very often suddenly up or down even by dozens of percent. Even though most beginners in crypto trading know this fact, they don’t realise the significance of the impact it might have on their capital. Therefore, I think it is mandatory to always use for investing in cryptocurrencies money that is not crucial for your well being. If you use this approach, you will have a better chance of successful crypto trading. Investing in cryptocurrencies is possible already from 10 dollars, so you can literally choose your capital depending on your financial situation. So the myth that you have to buy a whole coin of a cryptocurrency is untrue.

Basic information that every cryptocurrency beginner needs to know

Unlike other markets, cryptocurrencies can be traded 24/7. Which means that you can trade them whenever it suits you the best. With that in mind, you should decide whether you want to become a day trader of cryptocurrencies or rather a long-term investor. Both choices have their pros and cons. As a day trader, you can benefit from high price spikes that occur during a day on the crypto market. Which means that you open and close several positions per day and at the end of the day, you do not own any cryptocurrency, just your dollars. As a long-term trader, you have to see a great potential in a cryptocurrency and then take a big portion of your funds and invest them in it. You will not see your results at the end of the day but in a matter of months.