Crypto Trading for Beginners | 3 Important Tips to Learn Crypto Trading
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Crypto trading for beginners. Do you want to make money with crypto through trading, but you have no idea how to start or how to go about it? No problem! You’ve landed on the right page.
In this article you will learn more about what crypto is exactly, which crypto coins there are, what crypto trading is, you will discover eight important tips for beginners and where you can best learn crypto trading. Are you reading along?
What are cryptocurrencies?
Many people hear and read how other people get rich with crypto. A large part of these people have no idea how this is possible and how to do it.
The best way to explain what cryptocurrencies are is by using another well-known term: Bitcoin. Bitcoin is simply a new digital means of payment that is also called crypto or cryptocurrency.
Unlike the money we know today, it is possible to use a so-called blockchain technology with cryptocurrencies such as Bitcoin.
This technique stores data digitally, but not at one central point as our current banks do. The information is stored in every block of the blockchain and is therefore spread over a large network of different computers.
This makes it a lot more difficult to attack Bitcoin, which banks and therefore our standard currencies are susceptible to. Just think of DDoS (Distributed Denial-of-Service) attacks.
What types of cryptocurrencies are there?
Bitcoin is the best-known cryptocurrency. Since the beginning of 2021, the digital currency has broken record after record and has even been able to tap 50,000 euros per coin.
But besides Bitcoin, there are MANY MORE other crypto coins that you could invest in as a novice crypto trader. However, many of these coins have little following or trading volume, so they are not interesting.
But if you want to trade crypto as a beginner, then you would do well to also take a look at other coins besides Bitcoin. In
What is crypto trading?
You now know what cryptocurrency is and which coins there are. But what is crypto trading?
Crypto trading is trading in crypto where the goal is to buy cryptocurrency for a low amount and sell it again for a higher amount.
But before you can trade crypto successfully, it is useful to first learn more about this and only then invest. But I’ll tell you more about this later in the article.
3 Crypto Trading Tips for Beginners
By trading with cryptocurrency it is possible to achieve substantial profits. Nevertheless, the loss of your investment can never be completely ruled out.
By ensuring that you have sufficient knowledge, you can limit any loss. If you are one of the novice crypto traders, use a RELIABLE platform and do not take unnecessary risks.
By going through the tips below, trading cryptocurrency becomes a bit easier.
Tip 1: Determine your goal
The first crypto trading for beginners tip is to determine your goal. Determining your goal helps you make the right decisions. Moreover, it provides the right motivation.
It is important that you have something you can look forward to. As a result, you work more focused and you are therefore more willing to give more to achieve your goal.
Fortunately, the results of crypto trading are easily measurable. And when you see progress, you’re also much more motivated to keep going.
Therefore, write down your goals. But you don’t worry yet how you are going to achieve these goals, because that is for later. Because if you know what you want and who you want to be, then that motivates enormously to get started with crypto trading.
Once you’ve written down your goals, write a deadline in years behind your goals. Also describe why you want to achieve these parts.
Tip 2: Develop a winning mindset
Know that crypto trading has setbacks. Especially when the crypto market goes up and down, there are a lot of feelings and emotions involved, so you are guaranteed to make mistakes.
If you can’t control your feelings and emotions, you won’t be able to achieve your goals and you will stop at the first setback.
SIN! Because how you think determines your success with crypto trading. Therefore, dig deep into your “why”. The why ultimately determines whether you are sufficiently motivated and whether you will be successful in crypto trading.
Some questions that will help you find your “why”:
- Why do you want to start trading crypto?
- What do you want to achieve in your life?
- How do you want to look back at your life later?
- What would you like to do if you had enough money?
- What would you want if you could “work” wherever and whenever you wanted?
Write down all kinds of answers that come to mind, no matter how small the reason. The list you have now made is the basis of a good motivation to eventually become successful with crypto trading.
Tip 3: determine your strategy
Having a strategy is 1, but sticking to the strategy is a lot harder. Therefore, choose a strategy that suits you best and that you feel comfortable with. The advantage of this is that you are much more likely to persevere.
There are two different strategies you can choose from. You can choose from a long and short term strategy. I’ll go through them with you below.
Long term
If you want to focus on the long term, you will only earn money in a few years. You put the money in a well-researched crypto currency and you assume that it will have increased in value considerably in a few years. This is also called HODL in crypto terms.
The advantage of a long-term strategy is that you do not have to continuously follow the course. If you are – like me – someone who does not want to or cannot look at the price on a daily basis, then this strategy suits you best.
Short term
If you want to make money faster with crypto, it is better to focus on the short term. You then buy crypto currency from a crypto broker or crypto exchange and sell it for profit within a few weeks.
You also have the option to buy crypto coins and then sell them again within minutes. You then respond to small changes of course.
By buying crypto coins with high amounts of money, you ensure that you can make a profit. Keep in mind that you have to have a lot of time, practice, perseverance and patience in this way of trading.
