So, here you are, sitting in front of your computer, staring at the screen, excited about all that crypto buzz going on lately. No matter why you decided to go trading, to change your life, earn some fresh cash or high up your adrenaline levels, there are basic things you definitely must know. Do not, in any case, skip this step, or you would suffer for life. But do not worry, bros, we are here to help!
1. Familiarize yourself with the technology
I assume you would like to trade Bitcoin or Ethereum – the two most popular cryptocurrencies right now. By the way, Altcoin trading is also on the rise, see Altcoin news and info here (link). The first thing you need to do is to read some. Yeah, man, I know, it sounds boring. But you should at least know what the fuss around this crypto thing is.
In short, it is digital cash that uses a mathematical algorithm, supported by a blockchain technology. Go to our Cryptoledge section and check out the Bitcoin, Ethereum, Altcoin, and blockchain info. See what people are talking in the Services section.
2. Choose a coin
Now, when you know what it is all about, make a certain decision. As I said, the best choice for a beginner is an established electronic coin. Risk rates are lower and if you got screwed, you would not be the only one. Which means it is not so likely to happen. Again, read some and do your careful research. Not so difficult step, though.
3. Follow the news
You mastered the basics, words like ‘blockchain’ and a ‘digital asset’ do not sound like out-of-space baffling terms, you get confident. Now, reach out to news portals and see how it is going. Yes, in trading it is all about timing, timing, timing. Check out the trends, what innovations are coming out, who says what.
4. Choose an exchange
You are getting a crypto god! Yes, you know those smart boys somewhere around the globe mine electro cash for us and you want to go with the flow. Be careful here, though. There are many scammers out there. For a qualitative research, use heuristic data and analytics. Watch out for some important characteristics of the exchange: is its reputation good, do they have a nice verification process, do they offer high security. Have in mind high liquidity, it is crucial. It means to be able to get your cash back fast and without a thousand blanks to fill.
5. Define a strategy
So, you are all set up and ready to go. But how do you want to perform? Are you going to be a day-trader or a night-one? How much time you can spend online – every day, once per week, once per month? Do you want to just buy and sell or to speculate on the price? How much you can invest? Ask yourself all these questions and put a limit on it. Do not stake more than you are ready to lose. Be smart and watch your charts.
This money cannot be touched, bro. They are purely digital, i.e. each crypto coin is basically a long programming code. There are two ways of storing these – online or offline. Online storage is called ‘hot storage’ and it is made usually on a wallet or on an exchange platform straightly (the latter not very recommended by specialists). ‘Cold storage’, on the other hand, is made on devices not connected to the Internet. These could be flash sticks, memory cards, etc. Of course, the second option sound more secure, but if you want to get your coins in circulation, you have to bring them to the web.
7. Choose a wallet
Another vital step. If you have just decided to keep your assets alive, you must find the most reliable wallet service. Go with the big here. Do not trust any small and new-born websites we do not know anything about. The most popular wallet service is provided by Coinbase. For Ethereum, the community offers a wallet straight on their website. Check all options to transfer your funds – are you moving cryptos from your computer to their platform or when buying from a seller you go directly on a wallet? Note that some exchanges lock their wallets, which means that you can trade only on site and you cannot move or withdraw any coins out.
8. Try a demo
Before doing anything substantial, test your trading out. Your exchange should have that option (if not, run away from it). Go trial and see how it is going. If you see you suck at it, keep your cryptos for a while and come after you learned the basics. Do not put a pressure on it, if you have a good storage option to keep your funds safe, they are nowhere to go. You can always start to trade them or just sell them out.
9. Do not take financial advice
So, the things are like that: if you have something millions to invest, you can hire a Wolf-of-the-Wallstreet kind of a broker to operate with your assets for a commission. But with cryptos does not go this way – you have to play along. This is not an official currency yet, remember, it is controlled by the State, not dependable to the global economy, natural disasters, etc. No one is an expert yet. Not your cousin, not your neighbor, not the vlogger you follow that looks such smarty pants.
10. Hear the buzz
In the world economy things go like that: someone introduces something on the market; people go and think “oh, yeah, that’ll do” because it seems valuable, because Trump just got elected and everything sucks, because it has a future – no matter why they start to believe in it and buy; when many people buy something its price goes up (it is called a market demand). So, to put it straight, what people say matters. Do follow the trends, follow social media, blogs, and opinions. You will see yourself that when everyone rushes towards something, it really becomes a thing!
And finally, have fun, alright?! Life’s too short to be miserable and crypto inventions are all about being positive and enjoy the novelties!