The first trading with own assets is an exciting process, since in real time the market can change in just a few seconds. If you are interested crypto market should be distributed in such a way that a significant part is devoted to practice on demo accounts. If you have mastered this, do not forget that the real conditions are also different from those presented on such accounts, although they are as realistic as possible.
Cryptocurrency: how to start trading
Working with digital coins is always a risk, even if you invest in stable and most stable coins. If you have worked with demo accounts, then you have already chosen a platform and registered on it. Next, it is important to decide where you will store your own assets. This function is performed by the wallet. It can be exchange (if you work with small amounts) or hardware, desktop, cold.
- Hardware – suitable for long-term storage, provide a special access key.
- Desktop and mobile are the most convenient, but prone to hacking. The main plus is that you can access your coins literally at any time.
If you do not plan to conduct operations with cryptocurrency, then it is better to transfer it from the exchange wallet, for example, to a hardware one. But be careful, because the loss of such a wallet is a 100% guarantee of losing coins.
Be sure to replenish the balance and form a suitable trading pair. Having chosen a suitable currency ratio, open an order and make a purchase of the first coins. Learning cryptocurrencies for beginners involves going through this process, so it will not take longer than a couple of minutes.
Building a strategy
The essence of trading is deciding whether to buy, sell, or even take any action in a particular period of time in the market. In cryptocurrency, when learning from scratch, it is difficult to deal with this without experience. To simplify your task, it is important to form your own trading strategy. Its key components:
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Technical analysis.
It implies the analysis of price movements in order to find out the patterns of behavior of quotes. It is also important to identify and learn how to work with technical indicators in order to establish a price range at which the market will begin to reverse.
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Fundamental analysis.
It involves tracking and analyzing the latest news from the world of the crypto market, namely, the emergence of new developments, the adaptation of technologies.
After that, learning cryptocurrencies involves choosing a specific trading style. The main ones available are:
- Detrading.
- Swing trading.
- Automatic trading.
- copy trading.
By mastering these processes, you will be able to build a market entry strategy that is right for you.
