Many investors like to trade cryptocurrency because it’s an extremely volatile asset. If you can time the market right, trading crypto can give you much higher returns than traditional investments.
Cryptocurrency traders often have one of two goals: to accumulate Bitcoin or make a profit in USD. In a crypto bull market, it’s pretty easy for your portfolio to increase in USD value, but it’s more challenging for Bitcoin value to increase. To track your portfolio’s Bitcoin value, you can trade altcoins against Bitcoin on exchanges.
By actively trading your cryptocurrency, you risk losing your crypto to the market. Since cryptocurrency prices are so volatile, it’s not uncommon for traders to lose money quickly trading cryptocurrencies. This is why so many crypto enthusiasts just HODL their Bitcoin.
Pros and Cons of Investing in Cryptocurrencies
Investors are attracted to cryptocurrency due to its high volatility. It’s not uncommon for a cryptocurrency’s price to fluctuate over 10% in a single day. This is great if you’re looking for high returns, but if you’re a risk-averse investor then investing in cryptocurrency may not be for you.
Cryptocurrency Trading Steps
Step 1: sign up a cryptocurrency brokerage
There are centralise and decentralise exchange. .All 3 of these options offer a simple user interface and a variety of altcoins to choose from.
To make an account, you’ll need to provide your crypto brokerage with personal identification information, similarly to opening an account with a stock brokerage. Some common information you need to provide when setting up your account includes your Social Security number, address, date of birth and email address.
some crypto exchange include
huobi, luno, binance, uniswap, pancakeswap and more (PM to get 50% discount on trading fees)
Step 2: Fund your account with ringgit
You only have 2 way to fund your account in ringgit. Either you buy it from luno wallet or buy bitcoin from some famous p2p platform like localbitcoin, huobi , binance etc
Step 3: Pick a crypto to invest in.
Most active cryptocurrency traders allocate most of their capital to Bitcoin and Ethereum. These cryptos move more predictably than smaller altcoins, so trading with technical indicators can be easier.
Many crypto traders allocate a portion of their capital to smaller altcoins. Although small mid-market cap cryptos are riskier than large-market cap cryptos, they offer higher upside potential. Many small altcoins have risen over 1,000% in a matter of months, making them attractive investments for risk-tolerant investors.
Step 4: Choose a strategy.
There are a plethora of trading indicators to choose from, and most traders take multiple factors into consideration when buying and selling cryptocurrency. some of the famous is macd, rsi, ema, moving average, elliot wave, and so on.
Step 5: Store your cryptocurrency.
either you can store in official wallet, paper wallet or cold wallet.
If you want to know how, vote this post. More will be share weekly or join group for top crypto to pick weekly, 4-6 trading signals weekly.
This post has been edited by gomydata: Oct 4 2021, 03:53 PM
Bitcoin and Crypto Trading, 5 steps to trading cryptocurrency.