Are you interested in trading cryptocurrencies, but don’t know where to start? If so, you’re in luck. In this blog post, we’ll provide seven tips for absolute beginners who want to get started in the world of crypto trading. By following these tips, you’ll be on your way to becoming a successful trader. So, without further ado, let’s get started!
Don’t Jump In
One tip that is incredibly important for absolute crypto trading beginners is to avoid jumping in straight away. When it comes to crypto trading, there is a lot to learn and many mistakes that can be made.
This means that if you are an absolute beginner to crypto trading, you should try your best to take it slow. A good way to take it slowly would be to make a few small steak trades to get a handle on how the market works or try copy trading until you learn how the platform you are using operates.
Beware of Scammers
Another important tip for absolute beginners in crypto trading would be to beware of scammers. Just like any other industry, scammers are rife within the crypto trading world. More than this, scammers tend to target absolute beginners because of their lack of knowledge of crypto trading.
Three things to keep an eye out for would be Ponzi schemes, which is when you are promised increased returns if you recruit more investors, fake crypto wallets and exchanges that are essentially created to steal your information, and malware that can infect your computer if you download just any file from unverified sources.
Always Do Research
Of all the tips that beginners should take to heart, always doing the research before making a trade would probably be the most important. Any great crypto trader worth their salt will tell you that doing the research before making a trade is the only approach to ensuring it will be successful.
Of course, while there is no surefire way to research the market, and with crypto trading being so volatile as it is, there’s no guarantee that even if you do research you will be successful, you should always do research to mitigate risk and to assess whether a trade is worth it or not.
Budgeting and Knowing When to Let Go
Very similarly to always doing research, one thing that you should get into the habit of doing when crypto trading is setting a budget and knowing when to let go. In terms of setting a budget, this means choosing an amount you are going to be using to buy cryptocurrency every month, deciding how much you can afford to lose on trades, and deciding how much you are aiming to make.
When it comes to knowing when to let go, this means that if you have started a trade, there’s no reason to hang onto the cryptocurrency you have bought in the hopes that it will increase in price. Unfortunately, sometimes a trade will be a lost cause, and knowing when to let go can make the difference between losing some money and a lot of money.
Choose a Great Wallet
The next thing that you are going to have to do as an absolute beginner in crypto trading would be to choose a great wallet. As mentioned above, scammers do exist and some crypto wallets have been designed to just capture your information and should be avoided at all costs, by choosing a reputable wallet.
More than this, you need to decide whether or not you are going to be using a hot or cold wallet. Hot wallets are connected to the Internet and do offer encryption. However, they are generally considered not the best for storing large amounts of money. Cold wallets, on the other hand, are not connected to the Internet and are generally considered the best for storing large amounts of money.
Understand the Different Types of Traders
Finally, the last tip for absolute beginners to crypto trading would be to understand the different types of traders. This is a relatively important thing to understand since it will determine what type of trader you will be.
For example, day traders only make trades within a 24 period and focus on short-term movements in the market, whereas passive traders hold onto their position for a long period. Over time you will develop a trading style, but as a beginner, it would be worth your time to get an understanding of the differences between each.