How to start cryptocurrency trading in 5 practical steps 2022

 

How to start cryptocurrency trading in 5 practical steps 2022

In other articles, we have talked about cryptocurrency trading in detail, going from one topic to another to provide you with all the information you need to understand cryptocurrency trading.

But there is one thing we haven't talked about yet, which is how to really get into cryptocurrency trading and apply all the information and tips that we have given you in this series of articles.

That is why in this article we will discuss the real way to enter the world of trading through five simple and straightforward practical steps.

It may seem a little complicated and confusing at first, but don't worry, I guarantee that after reading this article, the whole picture will become clear to you and you won't find it mysterious anymore.

We have summarized everything you need to do in five simple and straightforward practical steps that you can follow to enter this world and start enjoying it.

Step One - Learn the Basics of Cryptocurrency and Trading

The first step in anything is always the hardest, getting to know this world and getting used to its terms and ideas can feel a bit overwhelming at first.

But after a while you will become familiar with these strange terms, you will become very curious about them and you will want to know more and more about them.

After all, trading isn't the same as building rockets or learning medicine, it's much simpler than that, and you can think of this stage of learning as an apprenticeship. "A..B", where you just need to connect things. .

Fortunately, there are tens, if not hundreds, of thousands of sources on the Internet, and you will not have difficulty finding them, on the contrary, it will be difficult to choose among them due to their abundance.

Of course, foreign fonts are the best, most professional and most accurate, but if your English does not support them, then read these fonts and learn.

There are also many courses and online courses on the Udemy platform that you can buy and take advantage of.

And if you don't want to pay for these courses, YouTube is full of professionals who are happy to share their experience with you.

Personally, I believe that you should not pay money without a good understanding of what digital currencies are, the economics behind them, and how they work.

Also learn the difference between investing in cryptocurrency and trading, the different types of cryptocurrency trading, and the platforms you can trade on.

Finally, you should familiarize yourself with the principles of analysis methods, whether technical or fundamental, and the most popular trading strategies.

Of course, this is not all, the world of trading is very big, but it would be a good start to survive in the ocean of cryptocurrency trading until you become a shark.

Second Step: Choose the right trading platform for you

There are hundreds of cryptocurrency trading platforms these days, and each has many advantages as well as many disadvantages, and it is your turn to choose the best one for you.

And you will always find that there is an eternal struggle between the fans of these platforms who are trying to talk about the best trading platform out there.

But there is no such thing, you cannot say that there is a platform that is absolutely the best, the problem is rather the ratio and proportion between the platform and the merchant.

So take the time to study and compare these platforms until you find the best station to start trading.

We devoted a previous article to trading platforms and compared their features and benefits, and I put the link to them at the beginning of this article.

In general, there are many factors that you can compare or prefer between one platform and another depending on the platform, such as:

a) Cryptocurrency provided by

There are many digital currencies on the Internet, and although almost all platforms support the two major currencies, Bitcoin and Ether (which is part of the Ethereum system), but if you want to diversify your investments and trading, you should deal with other currencies. . .

This is the platform's role in providing you with a variety of cryptocurrencies to meet all your needs and support your trading strategy.

For example, a day trader may need to trade altcoins to earn higher profits.

b) years in the market

Of course, the more reliable and popular a platform is, the better, the platform’s reputation and market presence are among the most important factors I consider when choosing my trading platform.

c) Platform-specific costs

Cryptocurrency trading platforms are not charitable donations, but rather companies that are created for profit and therefore impose many costs and commissions on the traders.

Each trading platform has its own system of charging fees, with some fixed fees, fixed fees, etc.

Therefore, before dealing with any platform, you need to carefully study it and understand its cost system.

d) Forms of payment and receipt of benefits

When choosing your platform, be sure to choose the one that facilitates the process of pumping and withdrawing funds from your account.

For example, if you prefer to work with PayPal or Payoneer, check the platform first, or if you prefer to do it directly from your credit card, also make sure you have this option available before you start working with it.

e) Merchant Reviews

Trader reviews are one of the best ways to help you choose the best trading platform for you. It is the true mirror of all the pros and cons of the platform, so be sure to read these reviews carefully.

Third Step: Create your account on the platform

This step will be very simple, all you have to do is create an account on the platform and follow the registration procedure.

Most likely, registering an account for you on the different trading platforms is completely free, and you will need simple things like email, phone number and some other personal details, but some platforms require a lot of additional things to be able to log in. for example. For example, a national identity card or passport.

You may also need to enable two-factor authentication or two-factor authentication to provide an extra layer of security for your account.

This step is very simple, and if you encounter any problems, you will find many videos and articles that explain how to register, or you can even contact the customer service of the platform.

Step Four: Choose Your Wallet

As I told you before; It is dangerous to keep your coins on the exchange, whatever it is, you may get hacked and lose all your money, so you should deposit these coins in an external wallet that protects your cryptocurrencies and your money.

If you are a beginner and do not know much about digital wallets, then this article we wrote earlier will help you: the best cryptocurrency wallets, their types and how to choose the right wallet for you.

In general, digital wallets or cryptocurrency wallets are the things that you keep your digital currencies like bitcoin just like your wallet you put them in whether you wear them or electronic wallets on your phone, etc.

There are two main types of these wallets:

1. Hot wallets: They are online wallets, often called software wallets.

They are available on mobile phones, browsers, or even desktop computers. These wallets are quick and easy to manage, but they are not the best when it comes to security.

2. Cold wallets: These are offline wallets, which are a little slower and more difficult to manage, but they are more secure than hot wallets.

These wallets have two types, hardware wallets or paper wallets.

There are many options for these wallets, the most important of which we mentioned in the article we mentioned above.

In general, traders prefer mobile digital wallets or hard wallets, and I personally recommend hard wallets because they are the most secure.

Before deciding on the wallet you want, you need to do some research so that you find the right option that is right for you.

And if you want us to write a dedicated article on the best digital wallets that merchants use, just mention them in the comments of the article.

Step 5 - Follow a strategy or plan to trade your cryptocurrency

Once you have completed the above steps and purchased your cryptocurrency, the last and most important thing to do is to trade.

Cryptocurrency trading is not random at all and if you try to do it without a plan, I guarantee you will lose your money and fail miserably.

You need to know exactly what you're doing, why you're doing it, and why you're not doing something else, and while what I'm saying seems counter-intuitive, a lot of beginners don't do it at least early in their career.

The first thing to do is to choose a trading method, yes as you know, there are many types or methods of trading, in addition to this:

a) daily operations

Ce type de trading, comme vous le savez, est basé sur l'achat et la vente rapides de devises numeriques qui se produisent en une seule journée, et depend en grande partie de l'expérience du trader et de sa capacité indicate à lire les from the market.

This type of trading may not be best suited for beginners as it requires a lot of focus and knowledge, but it also has some advantages that we talked about earlier.

b) resale

The other type is scalping, which is very similar to day trading, except that it happens faster in minutes or even seconds, which is also not the method I would recommend for beginners.

c) temporary trade

And now with the best trading method for beginners, swing trading, where the trader holds the cryptocurrency for a while.

The goal is to buy coins at the lowest price and then sell them at the highest possible price to make the highest possible profit.

The advantage of this type of trading is that you do not need the experience required for day trading or fast speculation, and you do not need extensive monitoring of the forex market throughout the day, the duration of which varies from a few days to a few days. weeks.

I recommend this method to all the beginners who want to make their way into the world of cryptocurrency trading.

Next, you will need to decide which trading strategy to follow, trading has so many strategies that it is difficult to put them all in one article.

Determining which strategy is right for you depends on many factors, the most important of which are:

Your level of trading experience and knowledge.

Your personality and the time you can devote to trading.

The loss you can bear and your ability to risk.

The strategies are very different from each other, although many of them are financial strategies, there are also strategies that depend on the behaviors and psychological factors of other traders.

You can choose the strategy that suits you best, then make some adjustments based on your situation and ability.

You can find these strategies by following the great traders on social networks or YouTube, through courses or even through articles and explanations.

After choosing your strategies, you need to prepare your trading plan, develop a risk management plan, and constantly develop your strategy and plan.

A business plan will help you a lot because it will reduce stress and pressure on you and know your next steps.

Make sure you put your feelings aside while trading and include them in your plan, the important thing here is to continue to trade responsibly and follow the plan.

The moment you give in to feelings like fear or greed, you will lose a lot of money, and we have already covered this in detail.

Also, do not forget to put this continuous learning into your plan, you need to keep track of everything that happens in this world, because it is constantly changing every day.

Conclusion

Cryptocurrency trading is a never-ending challenge whether you are a beginner or an expert, but fortunately the outlines of this trading process are clear and not everyone agrees with the details below.

In this article, we have explained these charts in detail and introduced you to five key steps to start trading cryptocurrency and as a reminder, these are:

Learn the basics you need to trade cryptocurrency.

Choose the right trading platform for you.

Create an account on this platform.

Choose the digital wallet you will use to store your cryptocurrency.

Follow a strategy and plan to trade your cryptocurrency.

I hope we have effectively helped you to know everything you need to start trading cryptocurrency, but you can ask us anything you want to know about trading and we will get back to you as soon as possible.