Getting into crypto has never been easier
Cryptocurrencies are becoming more and more popular as time goes by and unless you live in a cave, by now, you should have heard about Bitcoin or know someone who owns cryptocurrency. Cryptocurrencies are considered as high-risk assets and people who newly entered the market could suffer losses. But this goes also for every other financial asset on the market. You can enter in gold on the market cycle top – would you blame everyone that the market is wrong and scam or you will start reading before investing your savings?
There are many people who have heard about crypto and want to enter the crypto market, but have no idea how to do it. First of all, let’s start with some steps for buying crypto and after that we will discuss more about trading.
Choose which platform you will be using to operate in. The most popular platforms include Binance and Bybit. Please note that crypto regulations are getting stricter than ever and KYC (know-your-customer) procedure is almost a must on every exchange. Nothing scary at all – just scan your ID document and make a selfie. You can be verified within minutes and it’s still much easier than opening a bank account. Regulated exchanges are safe enough – Coinbase is even listed on the stock market!
Start researching. Look on the web and read through as much info as you can about the different types of crypto currencies. See what they are about, what milestones are to come and choose something that you like and want to stand behind. We strongly recommend for newbies to stick with the most popular cryptos like Bitcoin and Ethereum. Don’t be fooled by small and midcap projects hyping you for 100x gains in the next few months. A great way to stay informed about market conditions and crypto news is by signing up on social media platforms and following quality content. Choose wisely who to follow – don’t be fooled by clickbait crypto influencers with million followers. They are on the market to steal from you, not to help you. Great places for crypto news and discussions are Twitter, Reddit and Instagram amongst others.
Buy your crypto currency. After choosing your favorite one it’s time to buy it from your platform of choice and keep it in your wallet. If you are a trader – leave it on the exchange and trade. If you are a hodler – buy a cold wallet such as Ledger or Trezor and store it there. The popular phrase is “not your keys, not your crypto” and it’s legit, especially if you have a lot of money invested.
Only invest money in crypto that you would be ready to lose the next day, as the market is unpredictable and anything can happen. The same phrase goes for every other asset as mentioned above. Risk assets are not the place to put your life savings. If something crashes, the market won’t be wrong. You will be wrong.
Once you’ve purchased your coin, HODL as long as possible or learn to trade in order to increase your capital. Holding is the best strategy for people who want just to enter the market. No matter what you choose (trading or holding) you have to read about market cycles and market psychology.
Do you feel entertained? Now here are some tips and tricks for people who would like to learn more about trading:
Don’t trade with more than 10% of your whole crypto portfolio. Don’t be greedy, don’t try to 10x your life savings in a month. That’s the biggest mistake you could ever make. At the beginning, don’t risk more than 5% of your trading bank in a single trade. In this case, even if you are wrong, you will not lose a significant amount. Always use a stop-loss and manage risk accordingly.
Don’t rush into leverage trading too early. Try spot trading first – not on a daily basis. Do 2-3 trades per week and invest time in analyzing the market structure and the price action. Also, don’t copy trades from influencers – the main thing here is to learn how to manage your own money.
Trend is your friend
Yes, it’s a cliché, but it’s the safest strategy. Use higher timeframes and don’t try to fight the system. Analyse the market and trade only in its main direction and avoid trading in a range.
Don’t be married to your trades
Having an exit strategy for every single trade is vital for your trading bank. Before pushing the button on long or short, always have an invalidation point. DON’T ADD MONEY INTO A LOSING TRADE. NEVER DO THIS. Just exit and accept that you were wrong.
Practice makes better
The key for success in every aspect of your life. Do you remember how bad your first driving lesson was? Well, it’s going to be the same with trading. But don’t worry, trading is easy, you don’t need 10 indicators, 5 monitors and 20 paid groups with signals. Just trade and take notes on every mistake. That’s the only way to success and your well-deserved FINANCIAL FREEDOM!