A guide on how to trade on cryptocurrency

Understanding of Cryptocurrency Trading for the Newbie Trading in cryptocurrencies has been proven to be quite a challenging and/or thrilling activity.

1. Do Your Research:

Understand the Basics: Find out about blockchain, cryptocurrencies, examples of cryptocurrencies- such as Bitcoin and Ethereum etc.
Research Coins: It goes without saying that potential buyers should gain basic information about cryptocurrencies they are interested in, for example, technical characteristics, purpose, and rates.
Stay Informed: Stay abreast of the latest in cryptocurrency information, price trends, and government policies among others.

1. Choose a Reliable Exchange:

Security: When it comes to exchanging such infidelity, attempt to make exchanges with a stronger protection for your money.
Reputation: You should only go for those exchanges which are highly rated by their users.
Fees: Compared the fees they charge for trading, depositing and withdrawal.

1. Start Small:

Invest Wisely: Invest a small amount of money at first to reduce your chances of losing all your money.
Diversify: Invest in more than one coin to minimize risk so that if one coin fails to perform as expected you will have another to fall back on.

1. Develop a Trading Strategy:

Set Goals: In order to create the action plan of effective leadership the following questions should be answered:
Risk Tolerance: Determine your risk tolerance level and used it to make changes to one’s trade plan.
Technical Analysis: Understand what a technical indicator is as well as learn more about chart patterns relating to the price of the asset.
Fundamental Analysis: They should incorporate aspects such as the market feeling, news and generally the advancement in technology.

1. Practice Responsible Trading:

Set Stop-Loss Orders: Never assume that the prices of the investment products are not going down; by placing a stop-loss order you instruct to sell when the price of the investment product has touched its lower limit.
Take Profits: It is time to take profits regardless of how well your investments are doing.
Avoid Emotional Trading: Always act according to your plan and what you know, not because you feel scared or greedy.

1. Stay Patient:

Long-Term Perspective: Security of investing in Cryptocurrencies: Cryptocurrencies just like other financial markets have their fluctuations. Specifically, it is necessary to concentrate not on the short-term changes but to study the long-term tendencies.
Learn from Mistakes: Some failures are lessons and incorporating them into your plan is important.

1. Continuous Learning:

Stay Updated: Cryptocurrencies are gradually emerging, and this is why the market is so volatile. Be aware of new phenomena and new trends.
Seek Guidance: Thus it may be wise to seek advice from those who have been in the trading business or financial gurus.

written by @chinonso01