You want to learn Crypto trading, and you don’t know where to start, so what are you waiting for, here we’ve explained each and everything you need to know about the Cryptocurrency and Trading.
Cryptocurrency is the next hot thing in today’s trending world. Gen-Z are the most who are getting attracted to this new financial innovation. It is a generally accepted theory that if the prices are going up, you should sit in the middle of the boom to benefit from the upside. The cryptocurrency market is up by almost 50% in the past year.
So if you’re a beginner and you are looking forward to hopping on this train, here is a precise step-by-step guide to start Crypto trading.
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Crypto Trading for Beginners!
Step 1: Learn Technical Analysis.
This is undoubtedly the most important part of Crypto trading. Financial Analysis is of two types: Fundamental analysis and Technical Analysis. Crypto barely have any fundamentals responsible for their price movements. You would see charts with small green and red bars in them.
If you learn to read those charts and analyze them, you can make decisions on the price movement. This is a technical analysis.
To learn this skill, you can find a lot of videos on YouTube, or maybe you can take a course, or read articles like these on the web. Any platform you choose, remember analysis is at the heart of any financial instrument.
Step 2 – Understand the Cryptocurrency market.
To trade this instrument, you have to first understand the basics of it and the various dynamics involved.
Cryptocurrency is a digital, decentralized currency that is not issued by any central authority but is traded on an open market where the traditional supply and demand decide the prices.
Transactions are stored on a public ledger called blockchain which can be viewed by anyone. Due to its decentralized nature, Cryptocurrency prices are highly volatile but it can also serve as an innovative medium of exchange.
Like in the real world, currencies are of many types like the dollar, euro, pound, etc, there are many cryptocurrencies which are available in the market like the famous Bitcoin developed by the pseudonymous and unknown Satoshi Nakamoto, Ethereum, Tether, Dogecoin, etc.
Generally, the whole cryptocurrency market is gauged by the price of Bitcoin.
Step 3 – Open Cryptocurrency Trading Account.
Now as you’re geared with all the necessary equipment, the next step is to create a trading account. A trading account will be the place where your Cryptocurrency transactions will occur.
There are many famous brokers in the market like Binance, OKX, and CoinDCX, through which you will get access to the cryptocurrency market. You can choose the broker as per your convenience but remember, the broker should be reliable and trustworthy.
For opening a cryptocurrency account, you will need your phone number and e-mail ID and sometimes the broker will also ask you for an official ID like a Driving license, passport, Identity, etc. Some brokers might ask you for selfie verification after which your account will be created and activated within 1-3 days.
Step 4 – Maintain a Ledger.
Now that your account is created, apply your skills to the market. Many brokers offer a demo account for practice trading which beginners must use to get a hands-on experience of trading with no real money involved.
Remember to maintain a ledger to assess your profits and losses and parts where progress is needed.
Step 5 – Risk Management.
Cryptocurrency is an innately volatile market and thus involves a lot of risk. Moreover, its deregulation makes it hard for any governmental agencies to take risk management steps.
So you must learn some common risk management techniques like Risk-Reward ratio, loss and Take-profit, Risk per trade, etc. You will find tons of this content on the internet.
So this is your step-by-step guide for trading cryptocurrency. You can use this guide to start your cryptocurrency journey. Hope most of your questions are addressed and if there are any more questions, feel free to reach out to us.
Happy Trading!
