7 Steps to Quickly Become A Cryptocurrency Trader

The crypto market cap is now about $443 bn (after touching an all-time high at 1.15 Tn in Sept 2021) with more than 2000 crypto coins available in the market. There’s no surprise that more and more people around the globe are trying to invest in cryptocurrencies. 

Crypto market cap 2013-22

However, trading crypto can be a little confusing initially because the process itself differs from trading on stock exchanges and which most of us are used to.

Complications are a part of the crypto space, and therefore, you must be capable of understanding everything before you begin your crypto trading on the bitcode-prime.cloud

Moreover, it is tough to get used to the volatility of bitcoin and other digital token in the market, and therefore, having clear information about how to begin trading in the first place is very important. The guide can be beneficial in this department, and we will provide it today.

To start a new journey towards cryptocurrencies, you need to know about the best digital tokens in the market. The best ones are going to provide you with good security standards, and also, they will give you the best experience of trading. There will be higher fluctuations in their prices, and you’ll be getting more opportunities of making money. 

But, regardless of everything else, you must first enter the market. You need to know the best things you can do to become part of the cryptocurrency market without doing anything wrong. So, beginning a cryptocurrency trading journey can be a little bit complicated for you, but if you have a helping hand, things will be sophisticated. 

So, we will be helping you with a guide so you can quickly start your trading journey to make money.

How Can You Quickly Become A Cryptocurrency Trader

The Crypto market is full of complications, so following the essential steps is very important. Many people will tell you that the cryptocurrency market is not as complicated as it used to be, but that is just false information. Learning about the cryptocurrency market will also enlighten you regarding the complications you will face.

#1. Select a Crypto Exchange

The first step to investing in cryptocurrencies is to find out a place where these coins are traded. Just like a demat and trading account in stock trading, you will need to register and deposit some funds into your crypto trading account, only then you can start buying and selling crypto.

There are also some cases where exchanges suddenly terminated their operations with little explanation or the exchanges get hacked, leading to the complete loss of funds by investors. 

So it is always important to choose a trusted exchange and it’s better to go with the biggest and most well-known options.

Some popular (trusted) crypto exchanges in India are –

  • WazirX
  • CoinDCX
  • Binance

#2. Chose a Cryptocurrency Wallet

Cryptocurrency wallets are instruments that allow you to store crypto coins safely. You can also send or receive coins from your crypto wallets.

Currently, there are majorly 3 types of crypto wallets –

  • Online or Hot wallet
  • Hardware or Cold wallet
  • Paper wallet

Initially, you can go with a hot wallet, connected to the internet. Some exchanges like Binance or Crypot.Com provides you with built-in wallets as well.

#3. Do Proper Research

When you are entering the cryptocurrency market, research is your priority. Proper research is going to enlighten you about what are the prices of different digital tokens and which is going to be the most suitable digital token for you. 

Choosing a cryptocurrency is going to be a part of your research only. It is because clearing things in your mind once he’s not going to be helpful. It would help if you did it repeatedly to get all the information about the crypto space.

#4. Shortlist the Cryptocurrencies

Conducting research is the first part you must go through, but after that, you must pick some choices. It is because the cryptocurrency market is flooded with options when it comes to platforms as well as wallets. 

All of them are not good ones for you and therefore, selecting the one which will provide you with superior quality of services is a crucial task. You must ensure that you have the best quality cryptocurrency platform and wallet, which can be ensured if you check the security and quality of services they provide to you.

After getting all the essential services you need for cryptocurrency trading, you must choose the best cryptocurrency in the market again. It is going to be a complicated task due to the options available. Still, you can consider essential points like flexibility, security, and transfer ability to pick the right one. Even though it will be a little bit complicated, in the end, you’ll be left with the best cryptocurrency to help you make more money.

#5. Follow a Strategy

Picking and placing the order for a particular digital token is not the last step you must follow, but you should also make a strategy. The strategy will keep you on the right track and also guide you to making more money in the future. Working without a strategy in the cryptocurrency space is a disaster. So, always conduct proper research and then compile a perfect crypto trading strategy for yourself that will work on all the digital tokens.

#6. Find Reliable Sources Of Information

Cryptocurrencies are highly volatile financial instruments whose prices can go up and down in large percentages in a small timeframe. Crypto price fluctuations can be triggered by multiple factors, so you must constantly monitor the market if you want to become a successful crypto trader.

It is important to study a coin before putting your money into it. Some of the best tools for your research are Coinmarketcap and Cryptocompare. 

These are the web portals where you can find information on every coin and token available in the market. You can research market capitalization, supply, trade volume and similar stats. 

You can also track crypto-related news from major publications and blogs in the industry such as Coindesk, News Bitcoin, and Hackernoon. You can also dig into crypto-related social media platforms like subreddits, Telegram and Discord channels.

#7. Place an Order

Once you have followed the above six steps diligently, now the last step is to place your order. Always use Stop-limit orders to avoid losses. 

A limit order uses a price to designate the least acceptable amount for the order to execute, while a stop uses a price to trigger an actual order when the specified price has been traded.

Final Words

Having read the above-given details, you will see the details of how to enter the cryptocurrency market. To succeed in crypto trading, you need trustworthy information sources, deep and careful research, a trustworthy exchange and a safe wallet.

But, if you get stuck with the complications of the cryptocurrency space, perhaps beginning your trading journey will be delayed. So keep on learning about crypto on regular basis to avoid such delays.

About Raghav Gupta

I have done B.com and MBA in finance, so have a keen interest in personal finance. You will find information related to investment, credit cards, taxation and banking on SimpleInterest.

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