This is how beginners get started trading digital currencies!
More and more individuals are showing interest in trading digital currencies. The high margins that are theoretically possible attract beginners. In addition, trade can be carried out comfortably from the sofa at home.
What is trading, can you actually make money with it, and what do beginners need to get into crypto trading? These questions will be answered in the following article.
What is trade?
Trading means trading in currencies, stocks and other financial instruments. An investment is not held here long. Trading in digital currencies is called crypto trading.
As the values of the financial markets are constantly changing, a trader can analyze the markets and sometimes make large profits from the sale. However, it is also possible to lose all the invested capital!
Traders can open a securities account with a broker. Traders must not trade themselves. The broker does this part for you and charges trading fees in return.
Can You Make Money With Crypto Trading?
If the trader sells the currency at the right time, a profit can be made. You can actually make money with crypto trading.
However, trading digital currencies is a major challenge for beginners. After all, beginners do not know the necessary software, nor do they have any experience with the financial markets, exchange rates and currencies. Cryptocurrencies are also subject to constant price fluctuations and are difficult to predict even for experienced crypto traders.
What do I need to trade cryptocurrencies?
We present six points that are important for getting started in trading digital currencies.
The seed capital
To get started in trading, beginners need start-up capital. When it comes to crypto trading, a small start-up capital is sufficient in the first place. Because positions can be opened with small amounts. For the demo account with virtual credit, the so-called gambling money, no capital is required.
Anyone who wants to get into cryptocurrency trading should choose a trading platform where cryptocurrencies can be sold and bought. Well-known trading platforms for cryptocurrency thus act as brokers. In addition, the platforms often offer a digital wallet.
Trading platforms should be compared in advance. They differ not only in ease of use but also in the currencies offered. As a rule, the three leading cryptocurrencies Bitcoin, Ripple and Ethereum can always be traded. Some exchanges specialize exclusively in bitcoin.
Many providers, such as the pure crypto trader OKEX, also offer trading training courses for beginners. Experiences with Okex can be read on the Internet.
Some platforms do not offer a wallet. Before a user can start trading cryptocurrencies, a wallet must be opened online or offline. A wallet acts as a bank account where coins are posted. A public key acts as the recipient address for the user.
Trading software includes chart analysis, also called technical chart analysis or technical analysis. The analysis is considered a popular tool for traders, which helps them to predict the price development and to assess the market development correctly.
As a beginner, it is worthwhile to use a demo account and gain initial experience. No real money is spent here and the newcomer gets the chance to handle the market and the software through simulation. As these are test runs, paper trading is used in this context.
Beginners can make many mistakes in the beginning and should therefore concentrate on the most well-known cryptocurrencies. Since there are well over 800 different digital currencies, it is also worth exchanging ideas with experienced traders who can report on personal experiences with individual currencies.
Trading is trading in financial instruments such as cryptocurrencies. With crypto trading, high profits but also losses can be achieved. Beginners can quickly make mistakes that can mean losing real money. Therefore, in order to become familiar with the financial markets, a demo account should first be used to gain initial experience with play money. In addition, beginners need start-up capital, a broker, a wallet and trading software. In addition, they should trade with the stock exchange and the respective coins.