Mistakes you should steer clear from in Crypto trading

Tasks in blockchain require high technical knowledge and skills, which are also needed if you think of starting investing and trading in cryptocurrency platforms. Meanwhile, starting a crypto trader career is entirely different. While a crypto trader career is pretty simple compared to jobs in blockchain, you still have to learn and understand cryptocurrency and techniques. What differentiates the jobs between blockchain businesses and crypto trading jobs revolves around your skills.

In the blockchain, to be a valuable asset, you must have a technical background and know computer programming. While in a crypto trading career, all you need is to have a little knowledge about trading packed with short experience. 

Engaging in cryptocurrency solely affects your investments, so you should be aware and prepared to face the crypto-exchange risks and bear the losses by yourself before you start investing. On the bright side, because trading affects your investments, all the profit would land on your account if all things just go right. If you are interested in joining a blockchain job, you can still engage in crypto trading and increase your earnings. 

How to start a crypto trader career

Before thinking of fully investing to be a crypto trader, remember that there are some important things you need to do. Being a cryptocurrency trader requires having full knowledge about cryptocurrency and trading. So, if you’ve ever traded in the stock market, you probably don’t need to learn much about how cryptocurrency and trading works. Or if this is your first time, you may visit Bitcoin Buyer.

What you need to take note of and understand is that cryptocurrency is more volatile compared to stocks and financial assets. As the cryptocurrency market is still developing, you should be prepared as you can never be so sure about your speculations and where your hard-earned investments will take you. Once you understand the basics of cryptocurrency, you can then start planning about investing or trading. 

Meanwhile, on starting a crypto trader career, here are the steps that you should follow:

Open an account in an exchange

No matter how much you do your research, you cannot fully learn how to trade cryptocurrency by just reading articles and nothing else. The most effective way to learn to trade is to get out and indulge in the real field. So, the first step that you must do is to open an account in the crypto exchange and understand how everything works – you can also try and apply the proven ways that you have read in the articles you’ve been studying.

Next, you have to prepare some documents to complete the KYC reporting requirements, which is crucial in blockchain and get verified. Since you’re a newbie, you can easily start with exchanges like Kraken, Coinbase, etc, as these provide you with the option to purchase cryptocurrencies with fiat, making it one of the best options for newbies in the field. 

After signing up successfully, you may start to complete the KYC and make sure to enable two-factor authentication for a dual-layer of security. 

Buy cryptocurrencies

Newbies are highly recommended not to invest huge amounts of money right away. This applies to everything that you want to do; you should first observe, learn the basics, and master the process. You can start purchasing a small amount of cryptocurrency that you wouldn’t mind losing. With this, the best choice for you is Bitcoin because it is the most promising cryptocurrency at the moment – Ripple and Ethereum are also good choices.

Keep updated

After buying the first cryptocurrency of your choice, you are now ready to make a profit from it. After investing a small amount, you need to keep updated and observe the price movements so you can take advantage of the rising value of your cryptocurrency on time. One best way to keep an eye on the updates is by subscribing to trusted new sources that deliver the latest crypto news. 

Make sure to avoid making the common mistakes that new investors make, which is selling coins for a lesser price after seeing the value fluctuating in the wrong direction. To avoid panic selling and losing your investment at a much lower price, you must be prepared by coming up with a trading strategy beforehand about how and when you would exchange your coins.

Another mistake new traders make is being super greedy or over positive. When the prices increase, they wait for more time instead of making a profit – which is beneficial for the long term but not a good practice for day trading.

If you are struggling to find time in day trading, you can try the buy-and-hold strategy for the long term. If you check Bitcoin history, you’ll notice how the price has increased – from less than a dollar to thousands of dollars. So the buy-and-hold strategy is one of the efficient ways to earn profits from cryptos but would only be beneficial in the long run. 

What skills are needed to be a crypto trader?

Starting a career being a crypto trader does not require any certification or program. The only important thing to be a good trader is that you know how to earn profits from your investments. However, some important skills can be beneficial to your career, such as computer programming. As your career progresses,  you would need knowledge such as learning to understand technical stuff, reading cryptocurrency charts, and speculating price movements by reading the history of coins.

To learn more about crypto trading, one of the best ways to learn quickly is by subscribing to crypto trading platforms. Different platforms provide services where you can trade crypto on paper without investing real money. So when you have spare time and have nothing to lose, you can get engaged with all the trading tools and strategies.

No matter how proficient you are in the field, the best thing to do would be to never stop learning. Learning includes studying blockchain, which is the only way for you to decide which crypto coin is good to invest in. You probably already know the difference between a profitable crypto asset and others, but how to know which crypto is the best choice? 

Cryptocurrencies that provide some value to the current market can be referred to as good crypto but remember that not what’s shown is always true. So, you should do more research and find out about the organisation behind your preferred cryptocurrency and whether what they are claiming has a base or not. 

Leave a Reply