INTRODUCTION TO CRYPTO TRADING

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Cryptocurrency Guide for Beginners.

Step :1  Open an account with a Cryptocurrency Exchange

Once you have a grasp around the cryptocurrency industry, the blockchain technology, and different cryptocurrencies then you can start building your own cryptocurrency portfolio.

The first thing you really need is access to the “marketplace” from where to buy these cryptocurrencies.

If you’re interested in trading Bitcoin then you have a broad range of cryptocurrency exchanges from where to choose.

Secondly, you want to make sure your preferred cryptocurrency is listed on the exchange. The most popular is BINANCE. Majority of the altcoins are only listed on specific crypto exchanges so you want to only research those.

An altcoin is basically a cryptocurrency that isn’t Bitcoin like Ripple, Litecoin or Ethereum.

If you want a bunch of fancy tools with which you can buy and sell cryptocurrencies you’ll want to use one of the exchanges that offers you a large variety of order types.

Note: An important factor when deciding your preferred cryptocurrency exchange is to research it thoughtfully and also listen to other user reviews and experience.

Consider the following tips before choosing an exchanger wallet

How to choose the best  cryptocurrency exchange (exchanger wallet)?

It depends on the goals you follow. If you are an investor, you should care about following the listed below characteristics:

✔% of the commission for transactions;

✔limits of  the amounts of withdrawals;

✔the availability of trading pairs you need, example (BTC/ETH);

✔ the complexity of verifications(KYC & AML).NOTE:

(KYC=KNOW YOUR CUSTOMERS,AML= ANT-MONEY LAUNDERING)

For investors the question of account’s security doesn’t matter so much, as there is no need for them to keep their funds on the exchange.

But if you are a trader, the security should be very important for you, as you always hold some amount of  money on the exchange. You will also need a variety of pairs, different trading tools and detailed graphs.

If you are a miner, or you just want to exchange on currency to another, pay attention to following things:

✔availability of trading pair you need;

✔ speed of transaction;

✔ there should not be any negative reviews concerning the delay (or impossibility) of  withdrawal.

Remember: the right choice of  the exchange is one of the most important aspects for everyone, who deals with cryptocurrency.

Be careful and make a right decision!

Step 2: Select your coins you want to invest for the long-term

This cryptocurrency guide for beginners is more focused on the long-term investing in crypto coins. You can invest in multiple cryptocurrencies but I recommend to first start trading one coin.

Am going to show you all the basic steps to make sure you purchase the right cryptocurrency.

There are thousands of cryptocurrencies available to trade on exchanges across the globe so there is a big variety to choose from.

By using CoinMarketCap a free cryptocurrency resource website you can find all the different types of coins and what their market capitalization is and how much money those currencies are worth.

NB: Consider this image below as an example 😄👇

We can say there are three main valuation types that define cryptocurrencies:

1. Large cap (top 5 coins)

2. Mid cap – anything bigger than $200M

3. Small cap anything smaller than $200M

Don’t make the mistake and buy cryptocurrencies just because they are cheap and trading at 1 cent. It’s highly unlikely that a 1 cent coin will go up to $200 because the actual dollar value per coin doesn’t matter in the grand scheme. It’s the market valuation that counts.

The market valuation is calculated by the number of coins or tokens multiplied by its current price

Note: I recommend only investing in large and mid cap cryptocurrencies.

Step3: What price is your preferred cryptocurrency trading at? Check through multiple cryptocurrency exchange.

Another thing you need to consider when trading cryptocurrencies is the price of your preferred coin.

Where’s the price of your cryptocurrency?

Is it cheap; is it at all time new highs (ATH) or maybe at new lows?

As we already mentioned you should never buy cryptocurrency solely based on their price, but use it in combination with other factors such as valuation, available coin supply, what technology uses and what is the targeted market.

If you want to maximize your cryptocurrency gains you have to apply the “buy low, sell high” principle. This is part of the basic of a successful cryptocurrency trading strategy. You need a guide to cryptocurrency investing that can teach you how to trade bitcoins to make money.

Step 4:  Why are you optimistic about your cryptocurrency choice?

Why you are optimistic about your cryptocurrency choice is a fundamental question that you need to answer if you want to catch the next Bitcoin.

I have put together four major categories that you should keep an eye when trading cryptocurrencies:

1. What market or industry is the coin disrupting (virtual payments, cloud storage, finance etc.)?

2. What is the technology behind the coin? Make sure it’s easy to use, accessible and the fact that the blockchain technology is actually addressing an issue.

3. Solid team. Do your research and make sure the team behind your favorite cryptocurrency has experience is big enough and has the necessary skills to implement the claims these coins are stating they are going to make.

4. This is probably the most extreme and important factor because this will increase the demand for the cryptocurrency and it means people are using the blockchain technology.

You should not invest in any cryptocurrency that doesn’t meet at least three of these four categories.

Don’t be caught in the fear of missing out the next big opportunity in the crypto space. In the crypto community and cryptocurrency lingo this has been coined as the (FOMO) trade.

Don’t do the FOMO trade.

Do your research and only invest in the best cryptocurrencies.

Step5: Store your Bitcoin and altcoins using a cryptocurrency wallet.

A cryptocurrency wallet is like your bank account for your crypto coins. Your bitcoins need to be stored in a bitcoin wallet the same as your ethereum coins which need to be kept in an Ethereum wallet and so on and so forth.

In other words, a Bitcoin wallet is a piece of software that you use to communicate with the bitcoin network. You can tell the blockchain when you want to send or receive transactions.

There are multiple ways to store your cryptocurrencies both online and offline. You can even store your bitcoins on the exchanges from where you bought them which is not recommended because there is a high risk of hacking that can result in you losing your cryptocurrencies.

Cryptocurrencies can be stored both online and offline on a paper wallet or you can do it on a hardware wallet.

The best alternative to safely store your cryptocurrencies is to use a harder wallet or a paper wallet.

Conclusion – Crypto Guide for Beginner traders

This cryptocurrency guide for beginners is intended to be just a template into the crypto investment world.

Cryptocurrencies have the highest potential way to make money investing today. Don’t make the mistake of missing out this one in a lifetime opportunity.

If you want to invest in cryptocurrencies you need to follow a process and have a cryptocurrency trading strategy.I hope that this cryptocurrency guide for beginner traders will put you on the right track.

#GPT-4 #Launchpad #CreditSuisse #Fed #BTC

BY LEON TECH