Cryptocurrency is a considerable investment choice, so many people look for information related to cryptocurrency tips for beginners. The trend of crypto increases time by time. Perhaps, it is one of the reasons why people start this investment type. If you are interested in crypto trading, let’s continue reading this article.
Just like any other investment option, crypto is worth it to try. This impacts the result. Newbies often make mistakes which then lead them to get a loss.
As a newbie, you can find out the suitable cryptocurrency trading tips for beginners. The different way works for different people. First off, you must know what cryptocurrency is. In simple words, crypto is the digital currency used for any virtual transaction. Since it is designed with complicated programming codes, nothing to worry about its security.
Start from a Small Level
Everybody wants to get as much ROI (return on investment) as possible. However, it doesn’t sound so simple to get it. The higher chance of investing cryptocurrency with a lot of money, in the beginning, is a loss. It means that you will get nothing. No profit, no income, no money!
Beginners must remember and realize it. So, whenever you want to trade crypto, know how to trade crypto for beginners. Start it out from a small level. After getting good results and return, you can try a higher level.
Choose Your Cryptocurrency
You are about trading crypto, right? It is important to know well which crypto type you will choose from. It seems so complicated and confusing because there is hundreds choice.
For your information, bitcoin is the most dominant cryptocurrency in recent days. It is a type of cryptocurrency that draws the most attention and investment dollars.
Simply talk, bitcoin seems to be the most reliable among all cryptocurrencies available on the market. However, you are still able to consider Ethereum, Litecoin, Cardano, or others.
Select The Platform to Trade Your Crypto
Choosing the right crypto trading platform is no less important. With a bulk choice out there, you can make a mistake like getting trapped with a non reputable platform.
If you want to trade crypto in Indonesia, then you can choose the trusted platform. Aside from Zipmex, it is good to consider Koinku, Tokocrypto, or Upbit. There are also many other platform choices. Do simple research and review to find out the most suitable one. The platform must be able to meet your desire and need.
Do a Technical Analysis
To monitor the movement of crypto prices, most traders use technical indicators. What to keep in mind that the price of cryptocurrency is unpredictable. That’s why you need to rely on the right technical analysis.
Generally, Technical analysis is a technique for predicting price movements by reading charts. One of the most popular charts is the candlestick. Just like the name implies, This type of chart shape resembles a candle and is easy to learn, even for beginners. Candlesticks record price changes over time by depicting candle-like wick boxes with attractive colors.
Store Your Cryptocurrency
You need a crypto wallet to store your crypto, which can be the cold or hot wallet. Crypto wallet is a software program, which you can use to store private and public keys. Those keys connect you to the blockchain where your crypto exists.
By using a cryptocurrency wallet, you can also get the transaction records stored on the blockchain as well as your current balance. There are different types of digital wallets for crypto storage.
To be able to use a desktop wallet, you must install it on your PC or laptop. The information can be safer than using an online wallet because the storage is on your computer.
Using an online wallet means you can access it from any computer. Of course, it is more convenient to use. Unfortunately, your private key is controlled by a third party and stored online. Although it is less secure, it is good to try after considering few things based on your crypto storage needs.
Mobile wallet enables you to store your cryptocurrencies on the application you install on smart devices. One of the advantages of this wallet type is you can use it to make a purchase where various cryptocurrencies are accepted.
If you want to store private keys on hardware devices like USB devices, then you can choose a hardware wallet. Another benefit of this wallet usage is your freedom to access your crypto from multiple devices.
Secure Your Crypto
Securing crypto after you make a purchase is important. It sounds to be true, especially if you have a hot wallet or you want to use your crypto to buy something. Whenever you need to use your crypto online, your investment must be secure.
VPN will secure and encrypt any online transaction. It provides an online connection. Your data will get encrypted, which means nobody can see your online transactions. It can be an extra layer of protection for both your data and crypto purchases.
Pay Attention to the Spreads
You will get purchase and withdraw expenses when trading crypto. Aside from that, don’t forget to always check the spread. Spread is the margin between the highest buy order price and the lowest sell order in the exchange market.
Mostly, when it comes to trading, the seller offers crypto at a high price rate while the buyers want a low price. It then causes the spread. Spreads will affect liquidity and price volatility.
What to most important even before implementing these cryptocurrency tips for beginners is never trading crypto in a hurry. Learn all about crypto; get to know its pros and cons. After you know where and how to start, you can check your budget. As said, don’t start at large amounts to trade crypto. Start with small amounts, and go to higher amounts after you get the return. To be a successful crypto trader, it must be about profit gain, not crypto loss. So, do get ready to try a new trading experience?