Crypto & Trading

A Novice’s Guide on How to Trade Crypto Like a Professional

Crypto is the newest kid on the trading block. However, it is not something you should take lightly. At press time, the overall market cap of BTC Is Somewhere around $2.84 Trillion. Here is a graph that will show you the gradual growth of the crypto industry and market cap over the years.

The crypto community has seen some major upheavals in recent history due to macroeconomic movements, which sent shockwaves across the financial landscape. Subsequently, the US government is finally taking note of the scope of crypto as Trump signed an order to establish a crypto reserve

Therefore, the crypto landscape is booming with opportunities and prospects. Hence, now is the right time to get into the thick of things. Then again, involving yourself in crypto is not an easy thing, especially if you have limited clarity. Do not worry, as we are here to help you.

Understanding Crypto Trading & Its Inner Working

The cryptocurrency landscape is currently booming and is projected to grow as time goes by. This growth can trigger a heightened interest. If this continues, the competition in the industry could rise at a meteoric pace. Therefore, now is the best time to start the journey. 

The crypto industry primarily works on a blockchain principle. Blockchain is like a ledger that tends to store information on all the moderate and small transactions that are viewable. Nobody owns this ledger, nor is it susceptible to modification. This enhances the legitimacy of the process along with its security.

The crypto market works mostly similarly to the stock exchange. Prices go high when a coin is in demand, and they can plummet if the demand subsides. However, there are some major differences, such as crypto coins being digitally made and not being traced in real life, unlike companies listed on a stock exchange. 

Types Of Crypto Trading Strategies

The basics of crypto trading are simple: you buy and sell stocks to make a profit or incur losses. While the overall essence of the process seems like an easy concept to grasp, the truth is quite different. As the industry grows, traders are developing newer methods of trading.

Therefore, if you are actually planning on becoming a trader, you must understand the different methods that you could use. In this section, we will be primarily looking at some of the most prominent and useful methods of trading that can help you maximize your earnings.

However, this is not a ranking list. Hence, you need to approach the section at your own convenience and understanding. Let’s go!

Day Trading

Day trading is the shortest-term trading strategy in the crypto community. In day trading, traders open and close positions on the same day and not let it linger for an extended period of time. The primary objective of day trading is to maximise pofits using market volatility of 24 hour period. Day traders often use various different techniques like the chart pattern, crypto heatmap, trading signals, etc. One huge benefit of day trading is the fast and easy profit margin. However, it also shows volatility and creeping profits. 

HODLing

HODLing basically stands for ‘hold on for dear life.’ As the name suggests, in this technique, a trader would hold on to a stock through whatwevevr it may come. This is a very important method of trading where the trader would brave through all the volatility a market throws at them. The term primarily originated back in 2013. The strategy is to hold a token through short-term volatility in order to encash itseventual growth.  

Swing Trading

Another popular means of trading is called swing trading. In swing trading, the trader will hold tokens for a selected period of time and then sell them for profit. Swing traders are like surfers. They will ride the waves of success till it lasts and then go on a flushing hyperdrive, where they will dump all the tokens they had in their corpus. However, swing trading is a game of patience. Therefore, if that is not your jam, consider going for day trading, as it provides quicker results. 

How To Analyze The Crypto Market

As a trader, you need to understand the market from the inside out. You must understand what the market is doing and how it is reacting. This is crucial since blind trading can often lead to catastrophic loss of wealth. Therefore, understand what the market is up to before making any real move. 

The best practice is to stay updated with the help of government-backed crypto news outlets. Trusting the government site is important as they tend to offer the most credible information without any additional hassle. X could also be a great platform on which to stay updated. Hence, use these platforms to stay updated and ahead of the competition. 

Therefore, before you start your day to day trading activities, dedicate some time to understand how the landscape is perfrmiong. This will increase the overall visibility and enhance your chances to make it big. 

Proper Way To Select The Right Crypto

Once you have all the necessary information, you are finally ready to trade. To do this, you must pick the right coin. Therefore, use your prior understanding of the market and start choosing the right coin for your trading. Here are some additional points that can help you understand the 

  • Risk Tolerance: Always look for the risk factor of the token of your choice. Never go for tokens that are riskier than what you can afford. This is an important detail and do not skip this, otherwise, you might run into financial trouble.
  • Security: The next point of concern is the security. Never invest in stocks that have shoddy security arrays. This maximizes the risk with no actual reward. Therefore, only pick the secured stocks to work with.
  • Diversification: Do not put all your eggs in one basket. In othr wrds, strive towards building a diverse portfolio. A diverse portfolio will help you grow your investment in a more systematic manner. In other words, if you only invest in XRP, what happens when XRP falls? So, diversify.

The Final thought: Road To Crypto Success

Being a crypto trader comes with a lot of challenges. However, it also comes with its rewarcds. If you master the art of crypto trading, you can earn in billions from the comfort of your home. Not only that,as a trader you can do your job from anywhere in the world. Therefore, truly helping you become a digital nomad. 

shrayan

Complete startup freak... Founder of Startup Opinions Expert in Google Analytics, ROI Tracking, SEO specialist, social marketing marketer.

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