Perhaps by 2024, the term cryptocurrency trading (trade coin) is gradually becoming more popular with even those new to cryptocurrency. The rise in prices of crypto assets has brought huge profits to traders. For that reason, more and more people are interested in this field. So what is tradecoin? What are effective methods for new users to join and learn together?

What is Trade coin?

Trade coin is the buying and selling of coins or tokens on the cryptocurrency market to make profits from price differences. You can buy these tokens on centralized or decentralized exchanges.

The ultimate goal of trading coins is the same as other traditional financial transactions, which is to earn profits.

Popular forms of tradecoin

Spot trading (spot trading)

Spot transactions are transactions that are performed immediately, the assets will be returned to your personal wallet immediately after you pay. Profit will come from the increase in asset price since you bought it.

Future trading (future trading)

Unlike spot trading and futures trading, you will be the one predicting the price trend of the asset to invest accordingly. With two orders long (predicting price increase) and short (predicting price decrease), you will receive profits if used appropriately.

What do you need to prepare to start trading coins for newbies?

To start tradecoin, you will need a bank account to be able to exchange from cash to cryptocurrency. In addition, you will need a wallet to store assets such as metamask, Trust wallet, #BinanceWeb3Wallet .

Along with that, you will also need an account with a reputable centralized exchange that allows you to tradecoins like Binance. Binance is currently the number 1 exchange in the market, so you can feel completely secure when trading.

Goals and knowledge

To be able to tradecoin effectively, you will also need to supplement yourself with a certain amount of knowledge (technical analysis, trends, ecosystems...). In addition, you also need to clearly define your goals. Of course, everyone who participates in trading aims to make money, but having a specific goal will also make it easier to achieve.

Identify risks in advance

When tradingcoin, of course everyone will want to be the one to make a profit, but you also need to remember the saying "the market is like a battlefield", there will be no easy money to make. Starting out with the mindset of being ready to suffer losses will help you feel more comfortable when it actually happens.

Mistakes you should not make when tradingcoin

Choose the wrong coin

There are many different tokens on the market, so screening tokens before buying is very important, you need to pay attention.

Suffering from FOMO or FUD

FOMO (fear of missing out) or FUD (lack of consistency) are both negative psychological effects in trading that can easily cause you to lose money. The way to avoid these mistakes is to always stick to your original goal, whether profit or loss.

For example, you buy BTC at 64,000 and expect it to go up to 70,000. But when bad news was released and BTC adjusted down to 63,000, you rushed to sell and forgot your original goal, which was FUD. Always stick to your original discipline and goals.

Indiscipline

Every time you decide to invest, create an investment plan for each asset. Buy price, sell price, target profit, and what level of risk or how long to hold. Then what you need to do is follow that plan, avoid uncontrolled entry and exit of orders, causing heavy losses.

Some effective trading strategies for newbies

Long-term holding

The classic and perhaps most effective strategy is to hold for the long term. With this strategy, you just need to buy and hold a token until the price increases and take profits as desired. It sounds simple, but you will need to accurately determine the potential and price increase cycle of that asset.

DCA (cost averaging)

With this method, you will divide your capital and buy an equal number of assets every day, week or month. For example, if you spend 50 USDT every day to buy BTC every day without change, after 1 month you will be able to buy BTC at the average price and minimize risks related to asset price fluctuations.

Abitrage (price difference business)

As the name suggests, this is a strategy where traders will buy tokens in one market and sell them to another market to benefit from the price difference between the two markets.

For example, Mr. A buys BTC at Pancake swap for 63980 and transfers it to Binance to sell for 63984 and enjoy the difference.

However, this method requires the ability to search for information as well as manipulate transactions and transfer money more smoothly.

Wave trading

Wave here refers to the trend of the asset, users will benefit when trading according to this price trend. This method will require people to have strong knowledge of technical analysis and psychology.

summary

Recently we learned about the concept together #tradecoin as well as effective trading methods. Hopefully newbies have enough knowledge to take the first steps on the path to becoming traders. Wishing you success and making money from the market.
#CryptoTradingGuide