It’s easy to create an account on Coinbase, Binance, or one of the many other cryptocurrency exchanges and start day-trading. In fact, it’s too easy, because it creates a false sense of confidence & security that may lead to making poor decisions with your money.
1. Crypto Trading Is Very Risky
So starting out, my first piece of advice is to realize that cryptocurrency speculation is inherently a gamble, so don’t invest money you can’t afford to lose. The crypto market is highly volatile, and coin prices rise & fall on sometimes an hourly basis, driven by hype, news coverage, and a dozen other factors.
In the long-term chart for Bitcoin shown above, you can see massive gains & losses in value over a period of months that speculators can profit from. What you don’t see on this chart are the daily ups & downs that affect short-term day-traders, and that can be really dangerous.
