Cryptocurrency Trading For Beginners
A long time ago, in a galaxy far, far away, in 2017, the entire world started talking about cryptocurrency. Some at that time had already earned a fortune on their investments; others were just beginning to understand the meaning of a blockchain. The cryptocurrency’s high volatility always has a risk exposure, but according to a wise saying “Nothing ventured, nothing gained”.
It is the volatility that has brought popularity to crypto trading as price fluctuation in the right hands often turns into a profit. However, in order not to spend all savings on the crypto market on the first day, there is a need for theoretical and practical knowledge. In this article, StealthEX will guide you on the basics of crypto trading knowledge.
Successful trading of any assets has one main recipe for success: buy low sell high. Cryptocurrencies are no exception. Unlike investing in crypto where profits are expected in the long term run when trading it you need to predict price changes over shorter periods of time.
Methods for predicting cryptocurrencies rates
There are various methods for forecasting cryptocurrencies prices, but the main methods are the following:
• Determining the internal value of crypto takes into account any factors that affect the value of this coin. So it is necessary to study carefully the crypto project, its mission, and originality, technical aspects, team and RoadMap.
• General analysis of the crypto market. It’s worth remembering that the rates of the “biggest” coins such as Bitcoin and Ethereum are correlated with the state of the entire market.
• News regarding state regulation of cryptocurrency. Prohibited activities significantly affect the cost of crypto.
• This method consists of determining patterns and trends in the price through the construction of the mathematical models. The goal is to determine the most likely scenarios of price change.
We can say that both methods are important and necessary. If you buying a new cryptocurrency – pay attention to the fundamental method, if the coin has been trading for a long time – take a closer look at technical analysis. It is also necessary to take into account the impact of extraordinary events on the market, such as coronavirus.
Crypto trading methods.
• Day trading — profit from several short-term transactions during the day. In this method, the trader opens and closes all orders during a single daily session to avoid the risk of volatility between sessions.
• Scalping — hundreds of transactions during the day with a minimum drop in value to reduce risks. In this case, the trader places a lot of small orders instead of playing big. The profit for each transaction is minimal, but the total result can be significant.
• Swing trading — profit from price volatility in the longer term. Here investor buys cryptocurrency and waits for its price to rise, then fixes a profit.
The main mistakes of novice crypto-traders.
Take a greater risk than you can afford.
Be sure not to you invest all your savings in cryptocurrency or take out loans that, sooner or later, you will have to pay back. Trading like this leads to hasty decisions and inevitable losses. So only invest what you can lose.
The lack of plan and strategy.
You need to learn your strategy and to stick to it, even if other traders convulsively starting to sell falling coins. Ask any successful trader about the beginning of their career, and they will tell you that they repeatedly “drained” their savings before they realized how to trade correctly.
Give in to emotions (greed, fear).
The price of some crypto changes so fast that even experienced investors find it difficult to keep their emotions under control. Remember that most of the trading mistakes are usually made under the influence of panic, fear, greed, etc. So it is better to wait for the end of the price correction and enter the crypto market with the expectation of continuing the trend.
Forget to learn from mistakes.
Everyone makes mistakes. But just remember:
“Only who does nothing is not mistaken! Do not be afraid to make mistakes — be careful not to repeat mistakes!” — Theodore Roosevelt
We hope that this guide will be useful to get started on your journey of cryptocurrency trading. And don’t forget that on the StealthEX platform you can unlimitedly change coins already today without providing any personal data. Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example BTC to ETH.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
The article reflects the author’s opinion. Cryptocurrency trading is always associated with risk. To make a decision, you need to conduct your own research on the crypto market situation.
April 15, 2020