Trader’s Guide : 5 Tips New Traders Should Know

Crypto price collapsed in 2018 and no one really knows the reason. You’ll find hundreds of different guesses on the internet. A new technology came along, and with a lot of hype, prices rise dramatically. The faster the price rose, the more fragile the crypto market became. Investors who came late, faces losses and they started to sell their holdings. More selling means more price declines and that’s how a market correction developed. The market correction brought down the crypto price and you ought to be particularly careful with your crypto investments. You are investing your money in crypto so make sure you get the information you need.

To get you started, have a look at the 5 things you need to know before investing in crypto.

1. Volume

Trading volume is one the most important factors when choosing a crypto. First of all, higher the trading volume, more reliable the trading platform is. Secondly, the trading volume may be the indicator of the future. More the people are buying and selling a particular cryptocurrency, higher the possibility you will earn money.

2. Ratings and community

Ratings of cryptocurrency exchanges are worth looking into because they are created based on the most important criteria: supported countries, fees, security, liquidity, etc. However, these ratings do not give enough info for your investment. So in addition to the ratings, we highly recommend taking a look at a platform’s community. Check out the Telegram channel and keep in track of how many users are in it, how active conversation is, what people are discussing, and if they are having any complaints. You may also join a cryptocurrency forum and interact with investors who have experience in cryptocurrency trading.

3. Fees

There are some fees or commission while trading cryptocurrencies. You should carefully look into deposit fees, transaction fees, and withdrawal fees as it could be different depending on the broker or platform you use. They differ across platforms, but usually the fees don’t exceed 0.25%. If you are a large volume trader, you could be wasting big money on commission and fees.

4. Security

Making profit is important but keeping your money safe is more important. The platform you chose must be providing a mechanism that ensures the safety of your cryptocurrency. At minimum an exchange should implement 2-factor authentication, which requires you to verify yourself in two different methods. In addition to your username and password, you will need an extra security key. Mostly used methods are e-mail or SMS verification. However, the most secure option is to diversify your assets and store them in several accounts.

5. Technical Analysis is key

Technical Analysis could be a bit of use, but not much. Technical analysis is basically a study of how the psychology of the market, expressed with a chart. For example, when prices are going up and volumes decreases, you have to be very careful with that cryptocurrency movement because it indicates that a very small portion of the market is participating in it. On the other hand, if there’s a movement accompanied with large volumes, it means that the movement is supported by a relatively large portion of the market. Technical analysis helps us to avoid buying at the peak.

The number of cryptocurrency exchanges is constantly growing, which can be inapprehensible especially for new traders. Choosing a platform, with lots and lots of factors to consider would be a time-consuming thing. However, it is related to your precious money, and looking into future, could change your life. Therefore, you need to invest your time in researching information to succeed and do not be lazy.

One Reply to “Trader’s Guide : 5 Tips New Traders Should Know”

  1. Sushi By 7-11 says:

    Wonderful web site. Plenty of useful info here. I am sending it to
    a few buddies ans also sharing in my website. And certainly, thank you to your effort!

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