How to learn crypto trading from scratch?
The crypto market beckons newcomers. Everywhere and everywhere they talk about unprecedented money and millions out of thin air. And this desire to get into an unexplored “room of desires” is growing.
Often trading is perceived as a lottery ticket to a happy life. The truth is that none of the current traders will ever sign up to this statement. Traders lose money. Also, it’s a long and painstaking job.
Oh, and few people tell about the fact that a novice crypto enthusiast can expect pitfalls in the form of high volatility of assets, which can play on the rate both in plus and in minus, speculation, the risk of scammer attacks and other “suffocating” crypto market techniques.
Therefore, in order to learn trading or at least soberly assess the prospects of the industry, you need to have at least a basic level of knowledge — just like a dentist, to become a “tooth fairy”, you need at least 5 years of training in a relevant institution.
0x09df4968234f830e01b8a071
#PixelPiratesQuest
5.1
In this article, we have prepared important inputs if you want to get to know the cryptocurrency market better.
About trading
Trading is the process of buying and selling financial assets in order to profit from changes in their prices. You can trade assets in various markets such as the stock market, currency/cryptocurrency and commodity markets. This article is about the cryptocurrency market.
Learning how to trade is useful because this knowledge provides the following benefits:
- The opportunity to earn from anywhere in the world. You only need the Internet.
- There is practically no limit on earnings.
- You don’t need a team or a huge starting capital. You can earn on your own.
- You can choose different strategies and allocate as many hours a day for trading as you feel comfortable.
- Greater understanding of financial markets in general and increased financial literacy.
The basics of trading include understanding the basic terms and concepts of the financial market, methods of market analysis, different types of orders and trading strategies. It is also important to know the basic principles of market functioning and its instruments.
Steps that are important to know if you want to learn trading from scratch:
1. The fundamentals
It is important to learn the basics, operating principles, tools and terminology of the crypto market.
2. Analysis
Every transaction will be accompanied by a preliminary analysis. This is an immutable rule and an ABC for any crypto diehard. There are two main methods for analyzing the market — fundamental and technical.
Fundamental analysis combines data on the use cases of the product/token, the number of people using the token, and the team behind the project. The goal is to understand whether the asset is overvalued or undervalued.
Technical analysis is based on studying price charts and using various indicators to predict future price movements. Day traders usually use only technical analysis because they base their activities on speculation, long-term traders never do. But most traders combine both types of analysis in their work.
3. Strategy
Don’t be like everyone else, be yourself. In crypto, this rule also applies. It’s important to identify and develop your own trading strategy that fits your goals and trading style. It is important to define your goals, risk level, time frame and other factors that will influence your decisions.
4. Constant learning
Here, just as in medicine, a trader is an eternal student. But otherwise, there’s no way to keep up with the volatile crypto market. Read books, attend webinars and seminars, study the experience of successful traders and analysts. It is also recommended to follow the news and updates on the financial market.
5. Risk management
One of the most important aspects of trading. Develop a risk management strategy, define your loss and profit limits, use stop losses and limit orders to minimize losses.
6. Practice makes perfect
In order to do something, you have to… just do it. And then do it again and again. Practice is the most important criterion for successful trading. Be patient and do not spare any time.
7. Emotional control and readiness to fail
It’s important to realize that trading requires the ability to control your emotions. But seriously, this point is very important in order not to make a mess and not to lose your money. Sober mind in trading is the best friend and faithful companion. Trading is a risky thing and you should be ready to lose money.
It is important to trade the amount of money that you are comfortable with and that you are not afraid of losing. If you start trading with too large and significant amounts of money, you will inevitably make mistakes.
How to try yourself in crypto with minimal investment and without the risk of financial loss?
There’s a tool like this on the market, and fortunately, it’s not a scam 🙂
A GameFi novelty, P2E game Cosmic FOMO, where you can earn as you fly. An awesome tool for a beginner to enter the industry smoothly and painlessly and to try out crypto tools without the risk of losing your deposit, understand all the pros and cons and start earning on crypto right away.
To all new users, the game provides a free test pilot who can be launched into a Hardcore mode race — that is, against other users. It is important that with a test pilot any player will be able to test the game’s features, try to form their own strategy and build up their hand before entering the big market. You can stop at Cosmic FOMO, though. The game does not limit you in any way in earnings and gives you all the opportunities for systematic financial growth and development.
Cosmic FOMO is a treat for anyone new to crypto!
Conclusion
Crypto trading is a great tool for getting an additional source of income and financial growth. But it’s important to remember that the cryptocurrency market, in addition to untold riches, which are trumpeted everywhere, has another side of the coin — high volatility, that is, variability. The prices of assets can rise and fall in value almost every second, and therefore the beginner does not need to invest more than he is not afraid to lose. It’s also important to keep a sober mind and constantly learn. And practice, a lot of practice.
A great simulator for beginners can be the P2E game Cosmic FOMO, thanks to which you can explore the crypto market with minimal investment and understand whether trading suits you or not.
Good luck!
Follow Cosmic FOMO social media and don’t miss interesting and important news!
