Cryptocurrency

6 Basics All Beginner Crypto Traders Should Know

The cryptocurrency industry has skyrocketed in the last couple of years. When you take a look at the number of cryptos, traders, and transactions, you’ll see that this is the case. There are many reasons why this happened. The first and most obvious one is BTC’s value. Since it has touched its record value, people have become significantly more interested in investing and trading.

Not to mention that the process of trading has become much simpler than it was before. Just take a look at all the software that can help you with this process. Before you’re ready to step into this world, it is important to understand some crucial facts regarding the trading process. Let’s take a look at some of them.  If you’re interested in checking one of these, be sure to visit https://quantum-ai.trading/.

Source: cnbc.com

1. Research is a Must

Without any doubt, the first step towards becoming a successful trader is researching every move you make. Naturally, this should be done to determine what’s the right crypto for you to invest in. A decade ago, newbies had practically only one option, BTC. Nowadays, there are more of them than we can count. According to some sources, there are more than 8000 on the market.

Naturally, that doesn’t mean that each of these will represent a proper solution for you. In fact, we can see that many have made the mistake of investing in crypto that didn’t turn out to be successful. That’s why taking a careful look at the market is an absolute must. Besides that, it is important to understand all the trends that come and go. All in all, research is something you cannot do without.

2. Create a Plan

After you have found the right cryptocurrency to invest in, the next step would be to create a plan. Behind every plan you make, you should have a goal. Not having a goal will not provide you with anything good, you can be certain of that. Just think about it, not having a goal means that the trader doesn’t have any focus. So, even the smallest of problems can change its goals drastically.

Starting from scratch every once in a while is something that should be avoided at any cost. It makes sense that this is much easier to say than to do. Practically the only way it can be avoided is by having a strict plan about what’s the end goal. Good plans provide much-needed consistency and efficiency, which are two factors that can make someone a successful trader. So, create a plan before you start.

Source: Medium.com

3. Buy Smartly

When you take a look at some examples of crypto trading out there, you can get the impression that investing in those who have small value is a priority. However, this is not the smartest move you can make. As we’ve already said, you should research before any move you make. If the crypto you want to invest in doesn’t have any potential, you’re throwing your money away, without any goal.

That’s why the price shouldn’t be the only factor you consider when you invest. There are a lot of them to choose from, who can provide you with much more data on what should be done on your behalf. Once again, being patient is an absolute must.

4. Finding the Proper Platform

The next aspect we feel is important to discuss is finding the platform that will make the trading happen. For instance, we believe that beginners shouldn’t use any complex platforms. The reason is quite simple, chances are that they will not have a complete understanding of how to use it. Therefore, chances of losing a significant chunk of the money can get pretty high.

Thankfully, there is a platform that is made solely for beginners. They will not provide the user with too many options besides crucial ones. By limiting the number of options, the risks will ultimately be at an absolute minimum. Over time, when you gather a much-needed experience, you can easily start using other platforms, where you can get much more opportunities. Basically, you should start slowly.

Source: unsplash.com

5. Potential Risks

No matter what sort of investment you’re about to make, there will be some risks behind it. So, there is absolutely no reason why this shouldn’t be the case with crypto trading. The biggest risk traders face in this market is value volatility. For those who are not aware of the term, it means that the value changes constantly. Plus, these changes can be massive.

While this is always a good opportunity for profit, at the same time, it can represent a significant loss. Another risk we want to talk about is not having control over the transaction. It means that the wallet owner can lose the code that will make it possible for them to withdraw money from an ATM. Since there’s absolutely no way to get back the money once you send it, you should be very careful.

6. The Legality

Finally, we want to address the question of legality. It means that every potential trader needs to take a look at the current situation around cryptos in its native country. That doesn’t necessarily mean that they can be banned completely or not. Instead, look for, let’s say, the infrastructure. Meaning, take a look at the number of ATMs in your city, and how credible the company that owns them is.

Otherwise, you can face a lot of problems. Maybe you will not have a chance to withdraw your money when you want, due to the lack of infrastructure. Besides that, we can see that a couple of countries have banned all cryptos. All of these facts are important for determining whether the situation is proper for you to become a part of this market.

Source: coindesk.com

In Conclusion

As is the case with anything in life, having a basic understanding of the topic before you start is something you cannot do without. Here, you can take a look at a couple of basic facts that will make your start as a crypto trader much easier.

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