A Beginer’s Guide：The Comprehensive Look Into Crypto Trading
Cryptocurrencies such as bitcoin and altcoins generate a lot of interest from would-be investors. But before you jump onto your crypto journey, it is important to understand what you are investing in, the opportunities and the pitfalls.
This beginners’ guide to cryptocurrency aims to give you the information that you need. Here are 5 steps to getting started:
1. Do your research to work out whether cryptocurrency trading is right for you
Cryptocurrency is notoriously volatile and active trading can result in substantial losses. Before getting started, it’s essential you understand how any crypto you’d like to buy works. Reading guides on bibvip.com, exploring the blockchain and observing moves made by experienced traders are good ways to see if crypto trading suits your investment goals.
Remember to never trade more than you can afford to lose and consider chatting to a professional financial adviser before you get started.
2. Decide whether you want to do long-term or short-term trading
Traders are typically divided up into 2 groups: long- and short-term. Both are very different.
Long-term traders buy and hold cryptocurrencies for weeks, months or even years, with the intention of selling at a profit or using it later.
If you believe the value of a cryptocurrency will grow in the long run and don’t want the stress of actively trading, then this might be your style. A good first step is learning how to safely buy and hold cryptocurrency.
Short-term trading is about taking advantage of short-term cryptocurrency price swings by creating and executing a trading strategy.
It’s more active, stressful and risky than long-term trading, but it also offers faster and larger potential returns for those who do it right. It also lets you profit from cryptocurrency prices dropping as well as rising.
3. Choose the trading method that’s right for you
You can trade a pair of cryptos against each other or against fiat currency, with the goal of making a profit through buying low and selling high. This might mean buying a cryptocurrency before an important event (for example, Cardano adding smart contracts) and selling it into a stablecoin once the hype begins to wear off.
If you do it right, your funds grow. If you do it wrong, your funds shrink over time, as bad trades and changing markets can eat away at your holdings. The value of your crypto will rise and fall, but there’s no risk of immediately losing all your money to a bad trade. This method requires timing the market accurately, which can be difficult and requires a lot of research.
You can also trade cryptocurrency CFDs Cryptocurrency, CFDs (contracts for difference) are a specific type of derivative that lets you place bets on the price movement of an asset. Like other derivatives, they let traders go long (bet on price rises) and short (bet on price drops), and utilise leverage without owning the underlying asset.
Unlike other derivatives, CFDs don’t involve buying and selling derivatives in an open market. Instead, you’re just buying from and selling to whichever trading platform you’re using. While most cryptocurrency derivatives treat crypto as a commodity of sorts, CFDs typically approach cryptocurrency similar to forex trading.
4. Learn how to place trades and read charts
Before you start trading, you need to be sure cryptocurrency trading is right for your circumstances and that you understand the risks associated with it. You’ll also need to know how to read technical graphs and how various order types work.
5. Choose an exchane and start trading
When choosing a cryptocurrency trading platform, consider factors such as what kind of order types it allows, whether it offers derivatives or leverage and how easily it integrates with cryptocurrency trading bots. High-volume traders will also want to consider fees and how they may impact profit margins.
BIB is the world’s largest exchange that provides trading services between cryptocurrency and fiat currencies. Backed by Singaporean Venture Capitalists, BIB is poised for a tremendous global market expansion. As of June 2022, BIB is available to provide secure and convenient trading services in over 53 countries & regions, and lists 70 cryptocurrencies available for trade.
Get started with instant zero fee deposits and withdrawals on BIB, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 customer support.
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