Learn how to trade crypto currency beginners guide. Previously I have spoken about general stuff to do with trading crypto, options that it gives you and what is required to be a successful trader. Now it’s time to drill down a little and start to focus on some basics that you will need to know to become a wealthy trader.
To trade crypto you need to set up a few things first. Let’s get into it and covers those first.
What You Need
Being a learn to “Trade Cryptocurrency Beginners – Guide” we will start will the basics.
My goal is to just give you a general overview more about the Trading side of things so I will go into a lot more detail on digital wallets, exchanges how to transfer your coins etc. In future topics, however, I will mention them. If you would like any more info on something specific just drop me an email at firstname.lastname@example.org or keep an eye out for future posts. I am here to help when and where I can.
There is also this book Cryptocurrency Investing for Dummies available on Amazon if want to learn the basics. It is a good place to start, click the link or this one > Cryptocurrency: Ultimate Beginners Guide to Making Money with Cryptocurrencies like Bitcoin, Ethereum and altcoins
So you will need a place to buy the coin and transfer crypto etc. I started with Coinjar and Coinspot simply because they are reputable and Australian, yes I live in Australia. Another good option to get started is Coinbase you can even earn some Free Crypto at Coinbase.
You can also just transfer fiat currency or crypto straight into an account on your exchange of choice and start trading if you don’t want to bother with multiply wallets.
Exchanges are very safe and secure these days, you may know the acronym KYC, it stands for Know Your Customer. KYC is a verification process you will need to go through when you sign up and want to start trading on an exchange. You typically need to send in some form of identification to get verified like a passport or photo ID – a license and some sort of secondary document like a utility bill with your name and address on it. Once you are verified and passed KYC you can start trading.
More than likely you will end up trading on more than one exchange, not all platform have all tokens available to trade. Choices are good right! You might trade some on one platform and different coins on another platform as an investor you want options. If you want to move large amounts of crypto around quickly you will find you may be restricted by size limits on certain exchanges but if you have coin in multiple platforms you can move some from one and more in another. Plus you aren’t keeping all your eggs in one basket as you should not being a savvy investor.
You have your account set and want to start trading right – Woah!! Hang on not yet. You need a good understanding of the market, what coins are you going to trade? A good place to start is CoinMarketCap I don’t use their exchange but do research there. You can see what the market capital is and volume/volatility, I typically only trade the top 100 but they have over 7000 listed. Yes, 7000 and you thought there were only Bitcoin and a few others, there are thousands of coins to choose from. You can also see what volume is traded for each coin on a particular platform, this can help you decide what exchange to choose to place your trades on. So go and have a look and do a bit of research on Coin Market Cap, there is a lot of good info there.
Analysis – You can do a lot of analysis on Coin Market Cap and there are heaps of places to do Fundamental research. I am not going to go into fundamentals because I personally do not use fundamental analysis. I only trade technical analysis, I have made my system 100% mechanical so I don’t need to make a subjective decision about my entries. My trades either meet predetermined requirements or they don’t, simple, NO maybes. If they tick all the boxes I place the trade, if they don’t let it go.
Technical Analysis – Volume, RSI, MACD, Moving averages, Trend, Head & Shoulders, Shooting Stars, Inverted Hammer, Fibonacci, Candle Sticks, these are just a few terms you will hear when using Tech analysis but don’t let them scare you. You don’t need to know them all to be successful. In fact, I only use a few simple indicators and three strategies that work on any time frame and any market that’s it. So don’t get overwhelmed I use the KISS principle. Keep It Simple Stupid.
Your charts Should NOT look like this, that is a mess. Over the years I tried to learn everything about tech analysis, I thought the more I learned, the more I could apply to my trading to be more successful. Well, I’ve got news for you my friend, it Does Not work that way. I have gone back to the basics and only use price action and a few indicators and guess what it works better than all the other more complicated strategies that I have tried over time. I found the more indicators that I added I could just find another reason to keep me out of that trade, so you end up not trading. Not a good strategy to create wealth.
Because this is only a beginner guide I will not go into details about strategy now, you need to find what works for you, you might end up trading fundamentals only, who knows. I will cover my exact strategy in a future post, the simple tech analysis strategy works good for me but we are all different what works for me may not suit you. As far as a strategy goes you just need one that gives you an edge and must be consistent with how you implement it which leads me into the next topic.
Failing to plan is Planning to fail – That statement could not be more true when it comes to trading.
To be successful you MUST have a solid trading plan, you must plan your trade and Trade your Plan. Your strategy is not your plan! a good strategy will include goals, risk management, trade mechanics, schedule and things like how to manage your undesired outcomes. If you can’t write all this stuff down you have not got a trading plan, full stop.
Psychology – What has that got to do with Trading?
Everything!! Believe it or not, psychology plays a massive part in your trading success. Your head must be in the right place. If I am sick, I do not trade. If I am tired, I do not trade. Trading psychology is not optional you MUST learn it.
Trading psychology is too important and too big a topic to go into detail now, there is a lot of good info out there available on the net if you are keen to get started on the topic. If your really keen shoot me an email at dave@2dsirecrypto and I will give you my recommendations or have a quick look at the video below from Mark Douglas, that will give you a bit of an idea about Trading Psychology. I will talk more about Mark Douglas and this topic in future posts – It is very important.
If you liked the Mark Douglas video check out his books on the links below they are a MUST have for any serious trader.
But I Just Want to Start Making Money.
Buying Cryptocurrency is simple, a good trading strategy can be simple, consistently making profits is not so simple if you can’t put it all together. There is more to just opening an account and buying and selling. If you think you don’t need a plan you are wrong, you are guaranteed to fail. Trading successfully and creating true wealth does not have to be overly hard or complicated you just need the right information, the right attitude and enough discipline to put it all together.
I hope you have enjoyed my Trade Crypto Currency Beginners – Guide. I’ll leave it at that for now but if you want to discuss anything about this topic or want to share please leave a comment below or drop me an email at email@example.com
Remember Be the Best you can Be