Crypto Trading Guides 2024: Here’s 5 Tips You Should Know
Congratulation! You finally decide to get your hands down on cryptocurrency trading. You have made at least 50% progress, moving from hearing to actually doing it.
The global pandemic in 2019 brings a tremendous highlight to the cryptocurrency. I remembered it was massive! Bitcoin was THE headline and Dogecoin was the related article.
That fun was five years ago, and you are not too late to start in 2024. If this is you, you are on the right track. Let me share some tips on how to start your first trade on cryptocurrency.
# Tip 1: Learn the Basics
At first glance, crypto trading shares a similar concept with foreign exchange and the stock market. The most notable feature of the crypto market is that it is live 24/7, 7 days a week. The general rule of thumb is to observe the, usually in 4-hour intervals. With a keen eye to observe the market, you will start to understand the market trend in no time. Also, take your time to learn the difference between a coin and a token.
# Tip 2: Selecting Your First Pair
Crypto assets trade in pairs, usually among the following three: stablecoins, coins, and altcoins. Generally speaking, you will begin by exchanging your fiat money (real money) for a stablecoin (a coin whose value follows the amount of your fiat money). Then you use the stablecoin asset and trade for coins and altcoins. Important note that some exchange allows you to purchase coins and altcoins directly from fiat money. If you are a beginner, you will find yourself more comfortable dealing with coins with a large market cap. While altcoins may bring faster profit, it’s more prone to trend domination by the “crypto whales”, leading to nonprofitable trade.
# Tip 3: Market Analysis and DYOR
Several factors can affect the price of a coin. Hence experienced traders use multiple approaches in picking a profitable trade. These methods include technical analysis, psychology, socioeconomic, and even astrology. Since these approaches are subjective, the term DYOR (do your own research) is often used in crypto analysis, telling you to stick to what you believe is right and learn from your own experience.
# Tip 4: Risk Management
The rule of thumb: there is no 100% all-time winning trade. Even the most experienced traders may also face losing trades. What differentiates experienced traders and beginner traders is how to manage their assets. Experienced traders tend to split their assets into different coins, unlike beginners who tend to go all-in on a coin (It was me, I learned it the hard way).
# Tip 5: Create Good Habit
Trading is not only about financial gain but also psychological maturity. Having a discipline in following market trends and staying up-to-date on global news will benefit your decision-making. New coins from rising projects bring a constant opportunity to secure short-term profit. Discipline is also reflected when you decide to secure a profit and bail out from a loss. A community helps you with the latest news and insights, but the final decision always comes back to you.
Trading is a cycle. You can have a good trading day and at the same time, it’s a bad day for your trading buddy. Hope that these five tips can save you from all the hassle of getting your first winning trade. Keep educating yourself and stay informed.
