Trading cryptocurrency can help you get your hands on some serious money, but it’s no walk in the park. It’s a cutthroat business where newbies need to keep their wits about them or risk losing all their hard-earned cash.
If you’re just getting started with cryptocurrency trading, don’t worry: we’re here to help get you up and running with some simple trading tips for beginners from blockchain technology companies.
1. Study the different types of cryptocurrencies
The first thing to understand is that cryptocurrency trading takes place on exchanges, which allow you to swap fiat currencies (such as US dollars) for coins.
Some of these coins are more established than others, while some newer projects have yet to prove their worth.
Bookmark these articles to jumpstart your research:
2. Learn about crypto trading security
Your coins will be stored in a digital wallet, which is available as an app or online. You control your private keys and so you’re responsible for the safety of your coins.
The best advice we can give is to look after your private keys and back up your wallet.
This is an essential step, since even the most careful of traders can experience a hack – you might think it’s enough to use a strong password or 2FA, but it’s still possible for hackers to get into some wallets at some point.
And if that does happen, make sure you know what to do.
If your coins are in a wallet with private keys, for example, they’re not accessible by anyone but you. If you don’t have the private keys or seed, those coins are lost forever.
New to the concept of crypto wallets? Start here.
3. Start trading BTC and ETH first
When it comes to cryptocurrency trading, BTC is king.
It’s the most popular cryptocurrency and also has a practical use – you can actually spend it, whereas ETH is more of an investment token at this point.
The main benefit to trading BTC or ETH is that they’re universally recognised as valuable tokens, meaning you won’t have any issues with accepting them as payment from another trader.
4. Brush up on your crypto terms
The more you know about the crypto space, the easier it will be to understand how other traders are talking about the different coins.
You don’t need to become an expert in all of them, but knowing what you’re doing is half the battle when it comes to being a successful trader.
Do you know what the words “whale,” “pump and dump,” and “P2P” mean? Here you go!
5. Understand market caps and trading volume
In cryptocurrency, market capitalisation refers to the total dollar value of all coins in circulation.
You’ll hear the term a lot from blockchain technology providers, news, and investors, and it’s useful for keeping track of how popular different coins are.
Different coins have different trading volumes at any given moment – used alongside market cap, you can get an idea of how active a cryptocurrency is.
Here’s how to use market caps to make more money in crypto.
6. Diversify your portfolio
Investing in coins is a great way to start, but if you want to become a serious crypto investor, you need to diversify with ETFs, ICOs, NFTs, blockchain technology companies, and other opportunities.
This way, you’ll have a much better chance of ensuring your investments don’t suffer because one coin fails.
Explore Crypto Investment Opportunities with Key Coin Assets!
Whether you’re looking to get into ICOs, cryptocurrency trading or simply interested in finding out more about the world of crypto and stay updated with blockchain news, you can find it all here at Key Coin Assets.
As expert traders and crypto investors ourselves, we know how to succeed in this space while avoiding scams and other pitfalls.