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- Crypto Trading for Beginners: A Guide to Buy & Sell Cryptocurrency
Crypto Trading for Beginners: A Guide to Buy & Sell Cryptocurrency
Take your First Steps into Crypto
Crypto Trading for Beginners
Over the past few years a new ‘buzz’ word has been thrown around a lot. You have probably been constantly bombarded by ‘cryptocurrency this’ and ‘crypto trading that’. It is absolutely normal to be curious and wonder what the fuss is all about.
Crypto trading refers to the management of digital currency, with the intention of financially profiting. While they have some major differences, it is not entirely unlike stock market trading, which you probably are more familiar with. Crypto trading tends to be a much more volatile market, due to it still being somewhat in its early stages of existence. Ever since Bitcoin took the world by storm in 2009, thousands of other crypto coins have flooded the market, to varying degrees of success.
Unlike flat currency, such as the dollar or the euro, crypto coins are not regulated by a single authority, like a country’s government for example. That being the case, prices for the same crypto coin tend to differ widely from market to market, thus creating many exploitable discrepancies. All of the factors mentioned above contribute to crypto trading’s extreme instability, which in turn opens up the space for keen eyed investors to swoop in and take advantage.
The Basics of Crypto Trading Before taking up crypto trading, one must first become familiar with its fundamental aspects. Let us take a look at the basics of crypto trading for beginners. Crypto trading is the procedure of buying or selling digital coin assets in a market and aiming to turn a profit through successful trades. The core of a successful trade revolves around the central mantra of ‘buying low and selling high’. That could be accomplished through several different approaches that may fit different traders of multiple backgrounds and characteristics. Your initial introduction into the world of crypto trading can be very overwhelming and confusing. Despite that, there is no reason to worry, as analysts and years of experimenting by numerous traders before you, have resulted in an abundance of viable strategies you could employ to your own endeavours.
Crypto trading for beginners is actually much more friendly and inviting, as a novice does not need to be left to their own devices. Although, it is highly recommended to keep your foot on the figurative pedal, because leaving everything on autopilot and relying purely on outside help can only cause problems in the long term. Yes, these tried and true strategies may yield results rather quickly, but if you are not paying attention and learning about crypto currency, you will eventually run into a brick wall without any proper tools. Crypto trading is all about adequate knowledge of the subject, attention to detail and high adaptability. All of which, one could only hope to acquire through daily practice and studying.
There are so many resources to take inspiration from, so many approachable lessons in crypto trading for beginners, it would be a huge waste not to take advantage of them. Effective crypto trading is all about eliminating even the slightest of wastes, so why not start employing that to your education and make it a habit?
Step by Step Trading
As helpful as guides and research can be, actually starting trading is an altogether different beast. Here are the very first steps in crypto trading for beginners:
First of all you will need to find an exchange platform, in which your trades will take place. We will go over the best platform for crypto trading and the benefits it provides, in a later section of the article. Opening a trading account will require a bit more sensitive information than your average online profile (which is only natural for security reasons), but there is no need to worry. We have selected some of the best and safest crypto trading platforms for beginners.
After successfully registering for a trading platform, you will need funding to be able to place bets. This can be done easily via debit cards or wire transfers, which tend to be the cheaper option. Most platforms offer multiple funding options, so getting your digital wallet started should be a piece of cake!
Cryptocurrency is a highly diverse market and it offers thousands of options when it comes to coins. You could opt for the relevant stability of major coins, such as Bitcoin or Ether, which makes anticipating their price shifts much easier for beginners and veterans alike. On the other hand, altcoins provide an excellent investment opportunity, since their extreme volatility makes them an ideal target for high gains.
It is recommended that you do not dive into trading blindly. After all, you have a plethora of trading strategies at the palm of your hand, so why would you not utilise any of them? As is the case with most situations you could face in life, it is always better to be prepared than not. Do your homework, pick the strategy you think is right for you, take the time to really understand it and set your plans in motion. Moreover, a hopeful trader should never refrain from trying things out. It is all part of the process.
Last but definitely not least, you should consider where your assets will be stored to ensure their safety. The wallet you choose to store your assets could be either a digital or a physical one, with the latter providing the better security options.
At this point, we have for the most part, expanded upon all of the basics. We can now confidently take a look at the more specific aspects of crypto trading for beginners. First of all any aspiring trader needs to find a platform that suits their needs in order to begin trading.
Picking the right place to set up your ‘base of operations’ is a very important part of crypto trading, as you need to feel safe and assured about where you invest your hard-earned money. Otherwise, how could one hope to find the composure to make the right decisions at the most crucial of times?
With NAGAX you can rest assured in safe hands. Any information you may be asked to provide when signing up for a NAGAX account, is strictly confidential and secured. Security has been priority number one for NAGAX from the start. NAGAX offers security of the highest possible levels for all its users, guaranteeing that every transaction,exchange or wallet within the platform is as safe as possible. With constantly changing security measures, traders of NAGAX have absolutely nothing to worry about.
Getting started is extremely easy, because NAGAX offers the ability to pay for the crypto of your choice via credit card.
One of the most impressive and helpful (especially for newcomers) features of NAGAX as a crypto trading platform, is its naturally integrated social trading. Social trading allows you to analyse how the platform’s best performing traders operate and copy their strategies. Implementing a strategy used by more experienced traders is never a bad idea, but you should be cautious not to rely too much on copy trading.
NAGAX offers an impressive variety of crypto coins for you to purchase and trade, as well as some high quality educational material that could be very useful to novice traders.
It is a part of the established NAGA group which has been successfully operating for over seven years, so you know the people behind this crypto trading platform can anticipate a trader’s needs. To sum up, there is no reason to fret over having to choose a trading platform, because a platform that provides all of the above should be a no brainer!
No ‘crypto trading for beginners’ guide could be considered complete, without an analysis of the most efficient strategies available. We have chosen some of the most profitable, accessible and easily employable strategies that you should really try to understand and add to your ‘playbook’. Most of the best strategies have been developed by analysts and extremely experienced traders who know exactly what they are doing. Although, you have to accept that strategies are not magic. They do not instantaneously solve all your problems, nor do they guarantee success. Even after understanding said strategies, it takes much practice and continuous effort to be as effective and successful as possible.
A great strategy for beginners is called DCA (Dollar Cost Averaging) and is also used by more experienced traders, which can only mean one thing. It may be simplistic but it yields results. What makes Dollar Cost Averaging such a good pick for novice traders is the fact that employing it does not require very deep knowledge or even an understanding of indicators and graphs, for that matter.
Pretty much anyone can read about Dollar Cost Averaging and implement it immediately. So, what is Dollar Cost Averaging? DCA refers to the action of breaking up your asset investments into smaller, individual instalments. Instead of placing your whole investment in one bet, you divide it into multiple bets which take place within a predetermined time frame. What we hope to achieve through utilising the Dollar Cost Averaging strategy, is to minimise the risks a market as volatile as crypto trading may pose. By investing at set, frequent intervals we avoid most of the unexpected turns the crypto market takes every day.
When diving into crypto trading for beginners, most people will generally have a better understanding of how people operate, rather than how the crypto coin market does.
One could only assume that any strategy that could benefit from this understanding, would be the perfect fit for the inexperienced trader. Here is where Event-Driven Trading comes into play. Event-Driven trading is quite easy to comprehend. Any major, public event that involves a certain crypto coin, is sure to have an impact on the general public’s opinion. For example, a news segment (either a positive or a negative one) covering a specific crypto coin, will have said coin step into the spotlight, thus triggering a change in its market value. You may wonder how these things correlate with each other, but it is actually pretty obvious when you think about it. Depending on the nature of the coverage many traders will decide to take action, by either buying or selling this coin. Which is exactly how an asset’s value rises or drops.
Basically what you need to do in order to employ this strategy, is to keep up to date with all crypto coin news from all over the world and pick up on any buzz generated. However, in order to be successful you will need to react quickly and decisively, because even these trends tend to change in the blink of an eye. You will need to have your finger on the trigger to manage to take advantage of event-driven market swings effectively.
Buying and Selling Cryptocurrency
The market of crypto trading is highly unpredictable and volatile, more so than the stock market for example. Even so, there is one certainty about it and that is that it is not going away any time soon. In fact, studies have predicted an exponential growth for crypto coins over the next decade. That is why there is no time like the present to board the train and try to stay ahead of the competition. It may all seem a bit chaotic and daunting at first, but once you get your feet wet, crypto trading becomes exciting and potentially rewarding.
Despite that, it is of the utmost importance that you do not underestimate it or take crypto trading lightly. It is a ruthless market, where the competition is beyond extreme and huge losses are just around the corner for the unprepared and naive.
In conclusion, cryptocurrency is a big part of the future and you could only benefit from getting acquainted with it as soon as possible. Respect the risks, but do not be afraid.
With proper knowledge of crypto trading for beginners and an adequate preparation, you can take the leap of faith confidently and safely!
Risk Warning: Cryptocurrencies are highly volatile and trading can result in the loss of your invested funds. Before investing you should be aware that cryptocurrencies may not be suitable for all investors. You should therefore carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and not invest money that you cannot afford to lose.