There are different platforms to trade cryptocurrencies, trading is a source of earning for many people these days. One needs proper research and knowledge to start trading. Trading in simple word means to buy something in lower price and sell it in higher price.
How to trade cryptocurrencies?
Before you start trading read about crypto, research about the top coins. Once you understand the dynamics of cryptocurrency market. Choose any coin of your choice. You can trade on multiple coins. But, since you are a beginner start with one coin.
Once you have decided the coin register yourself on any exchange. Buy the coin that you want to trade. As a beginner always invest low capital and prefer to do short term trading. Once you hit the profit withdraw it.
Types of Trading
There are different types of trading but broadly there are three types of trading. Let’s discuss it in details.
- Day Trading: Day trading is a short-term trading. In day trading traders buy and sell the asset in a single day. It requires constant monitoring of the market. Once the price hit a reasonable profit hit the sell button.
- Swing Trading: Swing traders hold their asset for a longer time frame unlike day traders. Swing traders wait for the price to increase. They consider the event and trends. Once the price reaches a certain height they sell it.
- Long-term Trading: Long-term traders are more like investors they are not concerned about short time fluctuation of price. Traders hold the assets for a month or year and trade cryptocurrencies only if the price gives a higher return. They choose the coin after doing a lot of technical aspects since, crypto is the future.
Steps to trade cryptocurrencies
- Research and Learn: Understand the market dynamics of cryptocurrency. Read the daily updates and news. One have to stay updated according to the market before investing anywhere.
- Create account in trading platform: Choose a trading platform which is comfortable for you in terms of trading fees and user interface. Now, create your account and do KYC. It takes 1-7 days for verification.
- Make strategy: You have to analyze the chart and also keep eye on the news and updates. Now develop a strategy for buy and sell including the risk factor.
- Start Trading: Now, you are all set to trade. If the price is low buy the crypto and if it getting high sell it. Always take decision on your strategy. Don’t take decision based on your emotions because sometimes you may think to sell the crypto when the price will reach much higher but you won’t see the expected profit.
- Earn and Trade again: After successfully completing your first trade withdraw your profit and continue to trade.
Best crypto to trade in 2024
There are over 13,217 cryptocurrencies in existence. But, choosing the best crypto to trade is based of various factors like it’s valuation, growth in future, news and market volatility. Considering all the factors here I have listed few crypto to trade.
- Bitcoin(BTC): Bitcoin is the first decentralized cryptocurrency. Bitcoin has the market valuation of $ 1,206.29B USD as of today. Around 50 million people own the coin. Since, bitcoin is the more volatile coin it is also most tradable coin. Many people became millionaire trading Bitcoin.
- Ethereum(ETH): Ethereum is the fastest growing coin after Bitcoin. Ethereum has a market valuation of $ 418.06B USD as of today. Ethereum is also one of the leading crypto for smart coins and Decentralized platforms.
- Cardano(ADA): Cardano is also on of the most traded coin. The current price of Cardano is $ 0.38 and it’s market valuation is $ 13.57B USD.
- Solana(SOL): Solana is a high performance blockchain coin. The current price of Solana is $134.14 . And it’s market valuation is $57.83B.
Important tips before you trade cryptocurrencies
People gets more attracted to trading because we have seen many people who started from zero and became millionaire. Yes, there is high income possibility but there is also risks. Never invest all your savings in trading. Be optimistic but also think about the worst case scenario.
Also read about Crypto Staking
