How to Trade Cryptocurrency: Beginner’s Guide to Crypto – Part 1

The advantages of crypto trading

Trading is the best way to earn on cryptocurrencies because you can earn even when the price falls. When investors are in a panic, traders are calm. One of the main advantages is a strong volatility. The very thousands of percent that everyone dreams about when it comes to the Forex, on ordinary instruments can only be achieved with a large shoulder. Here it is all available with moderate risks.

Also, the classical technical analysis, book examples and well-known patterns work perfectly on cryptocurrencies. Since these tools are relatively new, they have many inefficiencies, they are also called arbitrage, which, for example, is already 10 years away from popular instruments, like EURUSD. If you take any simple strategy, like EMA Cross, then it will work terribly on EURUSD, and quite tolerable on cryptocurrencies.

What cryptocurrencies to trade and where?

The main currencies are Bitcoin, Litecoin, and Ethereum. Also, large ones include Monero, Dash, Ripple, Zcash, Ethereum Classic. Before starting trading, every instrument needs to be studied and understood for its basic trends, which people, news and events affect the currency, where you will keep track of this news, etc. The main thing here is not to rush into the deals, if you are a novice, and to study the basics for a while. You do not have to jump into unknown currencies. Remember: the one, who owns the information, owns the world.

Trading in crypto exchanges is a separate and not always a pleasant experience, and even with a high risk. It is much easier for ordinary traders to trade with well-established Forex brokers, because, like most, the traders themselves do not need bitcoins. Total costs in this approach are often lower. In this case, you get a fully-functional trading terminal, fewer risks of losing money and many ways to deposit and withdraw them.

In the second part of the article “How to trade with cryptocurrency” we took a look at trading strategies that work well on cryptocurrencies, as well as important features of money and risk management.

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