With over 1500 available coins on the cryptocurrency market, the opportunity to make money is huge. It therefore comes as no surprise that interest in trading crypto is rising every day. for most beginners though, starting to trade cryptocurrency can be quite confusing because cryptocurrency trading is very different from normal fiat trading. Here are three simple steps that will help you jumpstart your crypto trading career.
1. Choose a wallet
Before you start trading crypto, it is important to choose a good cryptocurrency wallet. Using your physical wallet to store money is the same way you use digital wallets to store your cryptocurrencies. The crypto wallet will not only allow you to store your coins but it will also allow you to send them back and forth from different exchanges, merchants or individuals. Most exchanges offer a wallet for storing the digital assets on their websites, but this is never a good idea. There have been cases of exchanges being hacked and users losing all their digital assets. You can either use the individual wallet for the crypto you are buying (which you can find on their main websites), or you can also go for multi-currency wallets which you can use to store all the cryptocurrencies in one place.
2. Pick an exchange
An exchange is a company that provides a platform for traders and investors to buy and sell their digital assets. Once you settle on a suitable wallet, the next thing you need to get is an account with an exchange. There are quite a number of exchanges, in fact, experts estimate that there are at least 200 exchanges that have a daily trading volume of at least $3.2 billion. But not all of these exchanges are reliable so you should take some time to research them before signing up. The different exchanges also have different terms of service and their trading platforms are also unique. This is why it is a good idea to visit a few of them and compare notes before settling on one.
3. Be informed
Cryptocurrency is quite a volatile market because it is not regulated by any government or body. This can be good or bad news depending on how you look at it. Traders who are well informed take advantage of this volatility to make lots of money on the price movements. In order to benefit from these oscillations, you need to stay informed on the latest happenings in the crypto world. For instance, it is advisable to use coinmarketcap.com to research important coin metrics before putting your money in it. Additionally, subscribing to a good cryptocurrency news site and blog will also help to keep you abreast of the latest happenings in the industry.
The next step is to start trading. It is advisable to size into trades instead of going all in. As you get more confident with your trades, you can gradually increase your position sizes. However, even after lots of experience as a trader, continue practicing conservative position sizing in order to maximize profits and minimize losses.