You might worry that the crypto ship has sailed, but fear not! There’s still plenty of time to get in on the ground floor with this cutting-edge alternative to fiat currencies, and newcomers have the opportunity to transform themselves into seasoned crypto traders over time.
Of course, the only way to thrive in this market is to avoid the pitfalls that often afflict the inexperienced, so here are some tips for trading crypto that will prevent mishaps from souring the experience.
Choosing a cryptocurrency exchange, e.g. KuCoin
The first major hurdle is selecting the right exchange on which to buy and sell crypto assets. There is a laundry list of potential platforms you need to choose between, and as a rule you should only choose exchanges that have a good reputation, as well as appealing incentives for new users.
For example, with the help of a KuCoin referral code you can sign up to this respected exchange and get an instant discount on fees as a welcome bonus. That way you’ll pay less to make trades, and get to keep more of your gains as a result.
Picking assets to trade, e.g. Bitcoin and Ethereum
There are an overwhelming number of crypto assets out there, and for those who are new to the market, it’s generally better to start off with the best known currencies.
Bitcoin may be undergoing a period of volatility at the moment, but it’s still a good long term option if you’re aiming to use crypto as an investment.
Ethereum is the second biggest asset class out there, and underpins a wider ecosystem of associated tokens, decentralized apps, NFTs and everything in between.
Setting a budget & establishing goals
Choosing crypto to trade is a lot like picking investments; you can’t do it responsibly without having a budget or knowing what your goals are from the get-go.
It’s obviously unwise to go all-in on a coin and commit every last cent you have to a moonshot. You need some financial cushion to fall back on if a dip hits, so don’t tie up all of your capital in crypto.
Researching assets and beginning to make trades
So long as you’re signed up with a good crypto exchange, as mentioned earlier, you can manage trading from a single platform, buying, selling and swapping assets as you see fit.
Of course you shouldn’t do this at random. Instead you need to thoroughly research each and every coin you buy, understanding not only how its price has fluctuated over time, but also what the fundamentals behind the project are.
Keeping up with the latest crypto news is clearly a good move, because it means you’ll be tuned into trends and alerted to opportunities as soon as possible.
Only once you’ve got to grips with all this info can you begin to make trades in earnest. Try to run before you can walk, and you’re sure to stumble.
Avoiding hype and misinformation
The final thing to note when you’re thinking about setting up as a cryptocurrency trader is that this is a market that’s especially susceptible to hype, and also one which is rife with misinformation and outright lies, usually perpetuated by people who stand to benefit from pumping the value of a particular coin so they can make a bundle before it inevitably crashes.
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Much of this is generated by and exists on social media, where crypto holders can whip themselves into a frenzy and reinforce mistruths through word-of-mouth gossip.
Taking a step back and not buying into whatever bandwagon is making waves from moment to moment is crucial.