Cryptocurrencies are gradually gaining momentum and traders are beginning to turn
back to cryptocurrency. The recent bulls would see many turning towards crypto
currencies in a bid to make quick profits in the crypto space, hence resulting in
another bubble for this volatile asset class.
While cryptocurrency trading could be highly rewarding, it is pertinent that you
understand how cryptocurrency trading works before diving into trading as the
cryptocurrency market is highly volatile and could result in loss of funds,
deteriorating sanity, and an overall animosity towards the crypto assets. Hence, i
recommend you read this write so you can start out your cryptocurrency trading
journey on the right foot by following these few steps outlined in this article
Choose a reputable exchange platform
There are lots of exchange platforms out there, but before you go on to get your first
cryptocurrency from any exchange platform, we recommend you do a proper
background check on the platform. Because this would have an impact on how you
trade, how profitable you become and the community you become involved with.
When searching for an exchange platform, you should focus more on focus on buying your cryptocurrency from a trusted and reliable source. Instead of focusing on “getting the best deal”, go with the exchange with the best reputation. Though it might cost you time researching for best platform to buy your cryptocurrency but at the end it is worth the peace of mind and security. The nature of cryptocurrencies has made it pertinent to carry out necessary research before engaging any platform, as cryptocurrency transactions are final and payments cannot be refunded once made. Therefore it is best you go for a reputable platform rather going for a platform that offers you a sweet deal, as a “sweet deal” in cryptocurrency can mean getting scammed.
There are lots of reputable platforms you could pick from, but we highly recommend you go with any of these; Nairaload, Exchangeindeed, Nairadirect or Paxful because you can be assured your funds are secured, and also a quick response from there support team should you have any questions.
Choose a wining strategy
As a beginner in the cryptocurrency market, you probably come across trading strategies from different persons claiming to experts in the crypto market. However before you dive into any of these strategies ensure they simple enough for you to implement and maintain because some complex strategies might be good but not the best strategy for you a beginner in the cryptocurrency market. It is advisable you maintain a simple strategy, and always keep in mind that there is no and never will be a strategy that will guarantee returns at all time. Nevertheless, you can always go for a strategy that reduces risk while maintaining a balanced portfolio.
Automate if you can
Unlike the forex market cryptocurrency market never sleeps, it runs every second of the day. And being online every now and then to monitor the cryptocurrency market can be very exhausting. I bet you wouldn’t want to be up all night trying to monitor the market trends. Hence, we recommend you find a reliable and secured automation tool to help you automate your strategies. There are a few automation tools that can help you do this so you don’t have to worry about being online 24 hours of the day.
Build a portfolio
Building a portfolio can reduce risk and provide stability in a volatile market. What do i mean by building a portfolio? i mean instead of buying a single asset (a single cryptocurrency) and hoping it performs very well, you can distribute the risk by getting a number of assets and manage these assets by making adjustments to your trading strategies.
Keep assets safe using cold storage
The cryptocurrency space recently has been under series of attacks from hackers, hence choosing a reliable platform isn’t just enough to guarantee the safety of your assets as you do not when the cookie might crumble. Funds can be lost in a hack at any moment, therefore it is advisable to keep your assets off an exchange as much as possible using a cold storage wallet, this way you become the guardian of your own bank. There are quite a few options to choose from, do your research to find something simple that works to ensure your funds are secure. You can also read tips on how to best secure your cryptocurrency
Patience and consistency
Cryptocurrency trading isn’t a get rich over night scheme, although the market is volatile but that doesn’t mean you will wake up the next morning to find the value of your portfolio double. It requires patience and consistency, once you have implemented your strategy, give it time and let it work out for you. Engage with your strategy and enjoy the process of learning, build up your expertise with weeks of careful research until you’ve mastered your strategy.
With these few tips i have shared with you it’s time to get started! Go out, create a portfolio and build the foundation for your adventure into cryptocurrencies. Don’t forget to ask question when it gets confusing as the cryptocurrency trading is an ever learning process and no can can claim to know it all. You can always join discussion forums where you can learn something new on cryptocurrency trading and together on this journey growth is inevitable.