How to Start Crypto Currency Trading From Beginning

Crypto currency trading is a very risky business, but you should understand that in life almost every thing is risky and it is also risky not to take a risk.

Some people have made lots of money through Crypto currency trading , you can also make your own money if you are determined.

This beginners guide will show you everything you need to know as a beginner.

I will help you to understand the difference between short-term and long-term crypto currency trading, with their advantages and disadvantages.

Bitcoin is the first crypto currency which was released in 2009 and was sold in 2010 for only $0.39, imagine if you had bought at that time, then nothing like crypto trading because it's just one coin

After some time more crypto currency was developed and crypto trading began

You trade one crypto currency for another, with the hope that the coin you buy increases in value before you can sell it and be in profit, this is just like real-world stock exchange.

For one to trade, he/she needs a crypto currency exchange where buyers and sellers meet together. For example, if you are holding dogecoin and want to sell it for Bitcoin, an exchange will help you find a Bitcoin seller to trade with.

Exchanges will now charge you a fee for make the trade, which normally costs around 0.1% for each trade.

Lots of people are now trading crypto currency as a full-time job.

Some traders use different tools to help them pick the right coins at the right time. This can include software that help investors analyze previous price of a particular coin.

But as a beginner you should start from somewhere in other to earn from crypto currency

As long as you are not trading more than you can afford to lose, there is no harm in trying.

Short-Term Trading

Short-term trading is when one buys a crypto currency but only plan to hold on to it for a short time then sell.

It can be from minutes, hours or days before you sell it and take the profit

Large trading volumes (so many persons buying and selling in the market) are very important as it means you will always find a buyer or seller easily!

Advantages

It offers a good opportunity to make high percentage profit

Disadvantages

If you want to perform short-term crypto trading, you will need to spend a lot of time analyzing the markets.

This is because the crypto currency markets are so volatile, the prices can go down very fast and you lose your money

In short - term trading you don't always win

Short term cryptocurrency traders look for small gains in small price movements,

In order to see good returns you must make large investments.

Long-term trading

“HODL” this is a slang word meaning to hold a crypto currency long term rather than selling it.

Long - term trading is when you buy a coin and hold it for one year or more until the price increases

Advantages

It’s easy and requires a little amount of time,

You don't need to start analyzing the market for any thing since you are holding your coin for long term.

Unlike short-term trading, where you need to constantly spend time checking the prices of the particular coin you bought

In Long - term trading you don’t need huge amount of money to get started.

Disadvantages

In long-term trading you might miss a good opportunity to make quick short-term profits, Sometimes coins rise so fast and you wouldn't know about that since you are holding for long time

Thanks for reading. In my next post I will show you guys how to start trading in an exchange