Those who invest in traditional stocks and commodities often have one or more brokers who are just a phone call or email away from walking them through the process, and offering advice along the way. In contrast, buying and selling digital currency is often a do-it-yourself situation.
For new investor in the cryptocurrency game , it can feel confusing when it comes to connecting with other traders and finding up-to-the-minute market information.
To put it in everyday language, the prospect of even getting started scares the living daylights out of some would-be investors. Are there no investment resources for traders new to cryptocurrency that can help them get started?
With just a few dollars worth of Bitcoin you can start trading cryptocurrencies right now. There are no broker fees, there are no middlemen to deal with, nor really any barriers to entry or red tape. All you need is some Bitcoin and a wallet to get you started. There is no reason not to try it out. If you can risk a few dollars, it’s a great way to get into the cryptocurrency space.
I started trading with less than $100.00 worth of Bitcoin.
I gradually traded my way up to 5.5 Bitcoin (worth over $6000.00 at the time) in less than a a few months. This isn’t to suggest that trading is something that’s easy or effortless. Losing money is an inevitable part of trading and investing, but you can certainly minimize risk and loses with the right strategies and investment opportunities .
The reality is that if trading were an easy, risk free way to make money, everyone would be a trader. However, if you’re a strategically minded person, patient, and able to research and analyze market trends, you’ll enjoy trading cryptocurrency as much as i do.
So let’s get started. First buy some Bitcoin.
There are some exchanges that will let you purchase specific cryptocurrencies for USD, but it’s a better idea to buy Bitcoin first. With some Bitcoin, you can trade into and out of every other cryptocurrency on the market, on crypto exchange like Poloniex.com . Remember: you don’t have to buy a whole Bitcoin (Priced at $1065.00 per bitcoin on publication of this article); you can purchase Bitcoin a fraction of a bitcoin known as Satoshis; for example, 500k Satoshis equals 0.005 Bitcoin or $5.34 .
The safest, most popular place to purchase Bitcoin is coinbase.com, however in Africa you will need to use Bitx in order to buy and sell bitcoin to and from your local bank.
Now that you have some Bitcoin, it’s time to find an exchange.
The most reliable exchange I’ve found is Bittrex.com and Poloniex.com. There are other exchanges too: some are good, some are bad, some have been shut down or disappeared over night.
Some people are discouraged from cryptocurrency altogether when there’s news of an exchange getting shut down or coins being stolen, but I see all of this as a right of passage for any new market that is still in its infancy.
The best way to protect yourself is to only use legitimate organizations and storing your cryptocurrency on your own machine or local wallet.
Investing in Trading Platforms without Trading while you still getting the hang of things.
Crypto Currencies like Ethereum offer Investment opportunities where you are able to invest in Ethereum trading without having to trade yourself .
Professional traders trade with all the investors funds and offer a return on their investment amount . Sites like Ethereum trade offer as much as 25% return on your investment and is a great way of getting started if you know nothing about trading or want to reduce the risk .
Get the necessary basic knowledge of trading on cryptocurrency exchanges and monitor market trends with their professional traders:
• theoretical aspects of the trade;
• practical skills based on the recommendations of experienced traders;
• trading signals and forecasts.
Once you have Bitcoin in your exchange account, you can start trading.
Before you just randomly pick some cryptocurrencies and watch their charts, I recommend you do some research first; otherwise you’re trading blindly. The best way to learn about each coin is to search it, like “Ripple” – “XRP” as in announcement. This search phrase will lead you to forums, blog post and official announcement or news articles.
An official announcement thread of a coin will show you important information: Total coin supply, technical details, development plans, mission statement, community speculation, and a lot more. Additionally, Twitter is a great resource not just for news, but tracking down web pages and other forums related to a cryptocurrencies .
Also visit cryptomarketcap.com to lead you directly to the official web pages for the various currencies.
Researching the market is referred to as “fundamental analysis.” By gaining the right information at the right time and understanding how it will interact with the market, it becomes easier to stay predict trends — essentially whether or not a cryptocurrencies will rise or fall.
In addition to fundamental analysis, you also have “technical analysis.” Technical analysis is equally important, but it refers specially to studying charts and finding patters—for example, at a certain price, a coin will fall repeatedly or at a given period in the year it tends to rise.
The most basic thing to remember is : Buy low, Sell high.
And last but not least , "Bag Holding " or Building a Crypto Portfolio
Just like Gold and Silver , its always a good idea to have various cryptocurrencies stored away for a rainy day when one of them might sky rocket to a new price level . Unlike "Day traders" that buy and sell coins every day as the price fluctuates against the major currencies like "BTC" or "USD" , "bag holders" hold onto there currency until it reaches a new price level which was the case for me when "XMR" or "Monero" moved from 1USD to 6USD in a matter of days.
However , take caution with the Altcoins. This market can eat you up and spit you out in minutes.
The best time to buy a coin is after it has been dumped.
People that didn’t cash out during the pump (called “bag holders”) don’t want to sell their coin at the bottom, at a much lower price. It goes without saying that if the price of a coin you’ve bought moves upward quickly, it’s best to cash out, back into Bitcoin.
And If it’s a good coin that you want to invest in for the long term, make sure you buy back in after a dump. Sometimes it is better to focus on accumulating good coins rather than making more Bitcoin, because a good coin will always rise again.