Non-Experienced Trader - Where Can I Start Trading Crypto?

non-experienced trader where to start trading crypto inexperienced beginner cryptocurrency

The crypto market is a trader's playing field. Cryptocurrency prices are significantly much more volatile in contrast with traditional financial instruments. This means that the price fluctuations are juicy for professional traders who are experienced and dangerous for those who have no idea what they are doing. 

If you are keen to learn and expand your trading knowledge further, there is an excellent detail of learning to await you, but it's not a task you cannot manage. Discipline is key to winning the cryptocurrency trading race. As a new trader, you should remain focused, disciplined, start small and work your risks efficiently. 

The safety of your funds should be the top priority. It would be best if you steered clear of risky trades at all costs. In the end, it's the profits you made that will count. In this guide, we are going to explain the trading process step by step. 

Choosing A Trading Platform 

Selecting a suitable cryptocurrency trading platform or broker is the first step in journeying in the crypto world. This might sound easy, but it is not. There are hundreds of trading platforms on the internet, and each of them offers different products and services. To make sure you select the most suitable trading platform that suits your needs, you should consider the following factors: 

General Security

Before selecting a cryptocurrency platform, it is vital to find out whether your funds and private information will be safe. The very last thing every crypto trader wants is to lose vast sums of money due to a lack of adequate research. By adequately testing the security features provided by a platform, it is possible to tell whether your funds will be secure. 

The Number Of Supported Crypto Assets

You should find out the number of cryptocurrencies a platform supports before joining. With thousands of cryptocurrencies circulating in the market, you will need to conduct a thorough investigation to determine the cryptocurrency you will invest in. 

Fees And Commissions

Most crypto trading platforms generate their revenue by charging a percentage-based commission on every executed trade. It's essential to find out the types of commission and fees charged before joining a specific platform. The fees charged have a direct impact on the profits made and even the losses. 

User Interface

If you're jumping in for the first time, you should select a trading platform that is easy to operate and navigate. Some platforms are specifically designed for professional traders. Coinbase established the Global Digital Asset Exchange (GDAX) in 2016 to complement high-volume professional traders with advanced features and functionalities. 

Choosing a complex platform as a beginner would likely result in making mistakes, which would ultimately translate into losses. 

Every cryptocurrency trading platform has its way of handling traders. If you put the factors mentioned earlier under consideration, you will likely end up trading on a reliable cryptocurrency platform that suits your preferences. A perfect platform will easily complement your trading method and strategies. Experts recommend trading Bitcoin in the Bitcoin era. This website is an excellent place to trade crypto for beginners and professional traders looking for alternative platforms. 

How Do I Manage My Crypto Portfolio? 

If you choose to buy, sell or trade crypto assets, you will have to keep a watchful eye on your investment. No matter the market value of the crypto assets you are holding or trading, it is essential to monitor it closely. 

To effectively manage your portfolio, analyzing the cryptocurrencies you are investing in is crucial. There are thousands of cryptocurrencies in the market today, and each is relatively different from the other. Before trading a specific cryptocurrency and adding it to your portfolio, it is essential to perform proper research and analysis on the token. 

Every crypto project has its distinct whitepaper detailing everything about it. Besides, visiting the crypto project's official website can also provide many details and statistics about a project. Again, online review platforms also provide crucial information regarding a crypto project. 

Cryptocurrency distribution on your wallet is also essential. There are various methods you can follow to distribute your cryptocurrency portfolio. One of the strategies to adopt is maximalism towards your favorite digital asset. For instance, if you are a Litecoin maximalist, a maximum percentage should be allocated towards Litecoin, and the rest can be distributed among the others. However, it would help if you remembered to be conservative as well. 

Another critical aspect of portfolio management is diversification. The most basic rule is never to invest all your capital under a single cryptocurrency. You should consider other solid cryptocurrencies as well. Portfolio diversification helps minimize the risk of losing all your money to volatility. For instance, when the price of BTC is dropping, the cost of Ether may be on the rise. This would help minimize the losses incurred by BTC. 

How To Establish A Trading Plan 

The disparity between gaming and trading is that in trading, you must have a definite plan. You can establish an effective technique by: 

Identifying Patterns

The idea behind reading price charts and having a trading plan is to identify patterns from the asset's historical price movements. You can now try to speculate the future price of the crypto asset using these patterns. Some patterns have appeared multiple times in several financial markets such that they have been designated their names. For instance, support and resistance, ascending and descending trendlines, etc. 

Define A Plan And Stick To The Plan

The two critical elements of an effective plan are identifying where to take profits and where to cut your losses. This ensures the profits you make or the amount you lose in the capital is within a natural borderline. 

Testing

Thoroughly experimenting with a trading strategy is vital before investing real cash. Paper trading and backtesting are highly significant here. 

Crypto Conclusion 

No matter the crypto trading strategy you will adopt, you must prioritize funds security and risk management. The crypto market is notorious for its high volatility, and the likelihood of making a profit or a loss is extremely high. For this reason, first-time traders are advised not to invest more than they can afford to lose.

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