How to Trade Cryptocurrency: A Brief Guide

The advent of crypto assets and blockchain investments was taken to a new level. People who used to trade stocks easily handle crypto trading. However, novice participants in financial markets may need help in this field. This article will tell you the basic things about cryptocurrency trading and help you take your first steps.

The Essence of Crypto Trading

Like with any financial market, crypto trading is the way to make money on the volatility of assets. With the crypto market, the chances to capitalize are higher, and it is much easier to reach several zero profits from investing just a small initial amount. However, at the same time, the risks are much higher compared with traditional markets. The reason is higher volatility and lack of control on the part of banks and governments. So it is much harder to predict crypto market movements and much easier to lose everything.

The main rules of trading:

  • Never invest your last money in crypto

  • Always track cryptocurrency live prices and charts

  • Use reliable crypto platforms for trading

  • Evaluate risks and be ready to lose funds (so invest only the amount you are ready to lose)

  • Do not allow emotions to guide your decisions

  • Adhere to a strategy

  • Use stop-loss and take-profit tools.

Trading strategies include:

  • Long-term investing: you buy crypto and hold it for many months.

  • Swing trading: you take a couple of weeks to a couple of months to decide to sell coins.

  • Daily trades: your trades are opened and closed within one day.

  • Scalping: short trades that take a couple of minutes. You may make many such trades a day and take many profits on small portions.

What is the First Step?

The first thing to do is, of course, to buy crypto. You may do it using a crypto exchange or address to a crypto broker. The easiest way is to register on a large and reliable platform, such as WhiteBIT or Coinbase, where you will be confident about the safety of your investments. Their interfaces are intuitive and easy to handle on the first try. Register, pass verification, add your bank card, and buy coins with the fiat currency you have in your account. Read more about crypto trading on the WhiteBIT blog.