Trading cryptocurrencies: A quick beginner’s guide

Cryptocurrency trading tools

Purchase crypto

  • Coinbase. This is one of the most reputable platforms for purchasing crypto. Apart from Bitcoin, it also supports a range of popular cryptocurrencies such as Litecoin, Ethereum, EOS and a few more along with online wallets for their storage. Initially targeting the European region, it has expanded its geographical coverage and now works across all the continents. However, the US is not included.
  • Binance. This is one of the leading cryptocurrency exchange platforms. It has the biggest daily trading volumes, the widest geographical coverage and the biggest variety of digital assets. Verified users can buy cryptocurrencies not only for USD, EUR, and GBP, but also for a variety of other local fiat currencies such as Turkish Lira, Japanese Yen, and even Thai Baht.
  • Local Bitcoins. This service works across the world and helps those who want to buy Bitcoin find those who sell it within their own region. Perhaps, one of the best things about Local Bitcoins is the variety of payment methods: a bank card, Paypal, Wechat, cash deposit and many more. The exchange rate and the fees may not be the best, though, so pay attention to these aspects.

Select cryptocurrency wallet

  1. Hot wallets.

Select cryptocurrency trading platform

  • Geographical limitations. This is the first thing to study as different platforms may be restricted in different countries. Look out for those that operate in your region.
  • Security. Find out if a platform has ever been hacked. If a breach has ever occurred, see if the platform has refunded the victims.
  • Stable coins’ support. Typically, funds withdrawal takes from several hours up to several days. If you want to fix your profits, it may be convenient to convert your funds into stable cryptocurrencies to avoid price fluctuations until you get your funds under your own control.
  • Transaction fees. See how much you have to give away on every transaction.
  • Daily trading limits. If you want to trade big amounts of crypto, learn beforehand what are the limitations of the selected platform.

Learn to read candlestick graphs

A candlestick graph can be found practically on any exchange platform.

Short-term vs long-term trading

Top 7 things to keep in mind when trading crypto

  1. Buy low, sell high. Don’t follow the crowd. If you see that the price for a specific coin has significantly increased, most likely, it will drop soon, so it’s not the best moment for a purchase.
  2. Buy at rumors, sell at news. In the world of cryptocurrencies, the price of any asset tends to grow as rumors about some significant events begin to spread and it drops after the event actually occurs.
  3. Only invest as much as you can afford to lose. If you are a newbie in this business, your risks are even higher due to the lack of experience, so invest only as much as you are ready to lose.
  4. Beware of FOMO. This abbreviation stands for the “fear-of-missing-out”. The cryptocurrency market is highly manipulative, so don’t give way to emotions and don’t rush to buy along with others.
  5. Diversify your portfolio. Follow the golden rule and never put all the eggs into a single basket.
  6. Set up stop losses for short-term trading. Look out for a dedicated option on the selected exchange platform.
  7. Watch Bitcoin. Since Bitcoin domination has always been pretty high, most altcoins follow its pattern.

Summing up

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