Cryptocurrencies are all the rage now, with volatile markets that provide opportunities for traders to earn a lot from the markets. But, like every investment, there are risks to trading without the right knowledge and information. Cryptocurrency trading goes beyond just analysis and purchasing coins according to the predictions from news and social media.
Cryptocurrency trading is more than just knowing what FOMO is. Beginners tend to make mistakes with how they trade, where they trade, and when they trade. So, here’s a guide on how to trade cryptocurrency and tools that can help make it easier.
What You Need to Get Started
Gaining the financial knowledge to trade is very important. You can also be a trader without actually doing any analysis or self-trading. You can do this by utilizing automated tools and other traders’ resource packages. However, for a beginner who wants to test the markets and figure out the market on your own. Here are a few steps to guide you:
Pay Attention to News
News has a lot of influence on cryptocurrency markets. It can determine if it will have a significant rise or dip. The best channels to get news relating to crypto are on communities like Discord, Twitter, and Reddit. However, doing research on cryptocurrency use cases can also tell you what aspects of technology news can affect the direction of your coins market.
Learn the Lingo
Although it might not seem overly important, learning the trading language can help you better understand the markets. This is because it’ll be much easier for you to grasp things without needing to ask anyone questions or browse an abbreviation. This will help you pick up on news instantly like when there are bull runs (which means you should most likely prepare to buy crypto, not financial advice though), FOMO, or fear of missing out, etc.
Decide The Type of Trader You Want to Be
There are two ways to trade cryptocurrency. Spot trading, which involves buying and holding cryptocurrency with low lot sizes and selling when there is a spike in the price of your selected coin. Futures trading, which runs a higher risk and involves the use of high leverages ranging from 5 to 50 times the amount of cryptocurrency. Futures trading allows traders to either enter into buying or sell positions in the market. Some platforms, like OSOM finance, offer better insight into the ways to trade cryptocurrency.
Learn to Study Charts
Although charts aren’t all there is to trading, they are still a very important part of the trading process. Learning to analyze charts using indicators and other tools makes trading more than just a gamble for you. Analysis has predicted the rise and fall of great coins such as BTC, ETH, YFI, etc. By learning to properly analyze using various indicators, bots, and tools, you can better navigate the cryptocurrency trading scene and make better decisions regarding the trades that you enter.
Finally, if you’re not a big fan of technical analysis and trading, you can also earn from crypto by other means such as staking, blockchain development, influencing, and becoming a cryptocurrency master node. So, when exploring the cryptocurrency industry, always keep an open mind about available options because trading isn’t all there is. See OSOM Insights for more information.
