Cryptocurrency trading seems to be a new concept for most people. The technical knowledge required seems to be intimidating to some. Most people are not sure how to get started on cryptocurrency trading.
Let’s start with the obvious question. Is cryptocurrency real money?
Yes, money has value as long as people agree to it. Since bitcoin’s inception, more people accept the fact that cryptocurrency is money. There are businesses accepting cryptocurrency. The entire country, Venezuela, is now using petro, which is a cryptocurrency in its country. So, there is value in cryptocurrency. And the value seems to be increasing over time.
The Intensity of the Cryptocurrency Market
The cryptocurrency market could be a stressful place. Cryptocurrency is on a 24 hours basis and a week in the crypto market is equivalent to 3 months in the traditional stock market. It is a 24/7 market, meaning that crypto traders are normally looking at the market on an hourly basis. Especially with leveraging, a goal could be reached within minutes. Make sure you are paying attention when your money is in the market.
Exchanging Fiat to Cryptocurrency
In order to get fiat money into cryptocurrency, a primary exchange is needed. Here are 2 exchanges you can use:
- Coinbase: The most popular option as it is user-friendly, and it is downloadable from the app store. It also includes a wallet to store cryptocurrency as well.
- Gemini: Started by the Winklevoss twins, it is the most US regulated cryptocurrency exchange service. It also stores cryptocurrency into the account.
Getting a Wallet
You could choose to store your cryptocurrency in a primary exchange, but for security, you should choose a paper wallet or a hardware wallet. Things are the safest when they don’t touch the internet or in the crypto world, it is called cold storage. The Ledger Nano S Hardware Wallet is great for storage. It offers cold storage security ability with the convenient nature of a hot wallet.
Tips on Trading
Here are 5 quick and dirty tips on trading:
- Cryptocurrency market as a totally free market: The order book on exchanges reflect clearly the junction between buyers and sellers according to pure supply and demand. The book of any chart reflects the demand clearly on how many people are buying and selling at any given time.
- Altcoins vs Bitcoin vs Dollar: Compare how the altcoins grow over time with Bitcoin and get the altcoins that can grow more than Bitcoin.
- Do not buy cheap coins: Just because you could buy 1000 of a certain coin with $10, doesn’t mean they are a great investment. Not all coins go to the moon.
- What goes down doesn’t always come up: During the last crash, a bunch of people bought a lot of coins which never came back up. Read the coin market cap to see what the volume is and guess where it will head to next. If the market cap halved by 50%, it is not a great sign.
- Do not follow your emotions: As Warren Buffett states, “Don’t be afraid to buy the dip.”
Information on the Market
Subscribe to Telegram channels as well as Reddit communities. TradingView is also a great resource on trading. Make sure to be careful so you don’t fall into Ponzi schemes. BitConnect had a strong community but it turned out to be a Ponzi scheme. Anything that promises too good of a return is too good to be true. Exercise with any trading advice on the internet with a grain of salt.
Do not ever put anything you can’t afford to lose on any type of investment, especially in cryptocurrency. The world of cryptocurrency is super volatile and you could lose everything in minutes.
Get started on Zeus Crypto today to get your crypto trading game started!