Compared to the rest of the financial markets, cryptos seem like the logical answer to making substantial money. Given the current global financial chaos, investing and making substantial profits by trading cryptos is gaining mass appeal. Many are also considering it to hedge inflation.
As more and more jobs have been lost in the post-pandemic years, more job cuts are expected in the future. As per the experts, these jobs that are lost won’t be available in the future; once they are lost, they are lost forever.
Many understand this dilemma and wish to prepare themselves for future uncertainties. If you are among the few who have identified this predicament, then you have arrived at the right place. We will be discussing a few tips that will help you make the correct decision while trading and make huge profits in the crypto market.
Conditioning yourself
Trading in cryptos is challenging, and entering the crypto market with all the things to consider will make the task much more challenging. You need to develop a mindset to anticipate future losses. You must understand that those few people you know who trade in cryptos did not develop trading acumen overnight. They had to suffer a lot of losses to make the substantial profits they might be making now.
You, as a beginner to cryptocurrency trading, must understand that you will initially make losses during the initial phase, and such things are normal. What is not normal is not learning from your mistakes so that you can avoid them in the future.
Setting goals
Before you even begin to trade in cryptos, you need to set goals for both the immediate and long term. Setting up such goals is important, as based on them, you can define your trading style and strategies while trading.
Having goals will help you focus on each trade and will also motivate you to reach your stated goals. Regularly checking how much money you made will help you realize your goals. You are bound to get in touch with those who have already been trading in crypto. A word of caution: do not take any investment advice from them since they have different goals and financial aspirations. You could, however, ask them about how to research cryptos. Cryptocurrencies have a lot of hidden potential, and we have only scratched the surface of it. Nonetheless, you must understand that other than the demand-supply factor, cryptos do not follow any other economic laws.
Learning the lingo
Cryptocurrency has given rise to several lingos that are quite unique. They also have a blend of words that is quite common with Gen-Z. Understanding these lingos can help you a lot, as it becomes easier for you as a beginner to cryptocurrency to understand what the person is trying to convey.
Crypto community
You do not need a degree in computer language to decipher cryptos; you can very well join a crypto community and understand its uniqueness and how it will revolutionize the crypto market in the future.
Bitcoin is the original cryptocurrency, and after its initial success, many developers wished to create their version of Bitcoin.
Although Bitcoin is roughly a decade old, it has shown a promising future. Where each coin cost mere cents, today it had hit its all-time high of more than $68,000. At the time of writing this article, each Bitcoin costs roughly $30,000. As of today, Bitcoin has the largest market capitalization. The closest crypto, Ethereum, is trending at roughly $2,000.
Many regret not buying Bitcoin when they had the chance. Now that crypto enthusiasts know that new crypto will be released in the market, they rush over to buy it, which is another reason why many fall for crypto scams.
Many scammers create fake cryptos and release them on the market, and many people fall victim to such scams. Thus, joining a crypto community will help you understand the technology. Such communities also have developers as members. Before releasing a cryptocurrency, its developers release a white paper, which elaborates and highlights how it can revolutionize the world and become the next big thing after Bitcoin.
However, caution must be exercised since many developers within the community might promote or attempt a rug-pull before running away with cash collected from their victims.
Selecting the right platform
Selecting the right exchange is a must if you are considering parking your cryptos on a crypto exchange. However, we will not recommend this, as it is a mystery which crypto exchange might go bust. Instead, you can always opt to invest in a good offline crypto wallet. Although it can be troublesome to transfer your cryptos from your wallet to the platform, you can be assured that they are safe as many exchanges are going bust. Still, we recommend that instead of losing all your savings on a bogus crypto exchange, go for a reputed and trustworthy exchange for trading and saving your cryptos on an offline crypto wallet.
You need to find a reputed and trustworthy crypto exchange that has the authority to practice trading in your country. It is important to find one, as governments in many countries have either limited crypto trading or completely banned it.
Several online crypto brokers or brokerage firms allow a demo account. They are similar to normal trading accounts, but instead of using real cryptos and fiat currencies, they use fake ones. The idea behind using a demo account is that you can practice your trading skills there without the fear of losing any actual money. It is also true that if you make a profit, it won’t impact your wallet, and your wealth won’t grow.
Some also offer online crypto trading courses that can guide you on how to research cryptos and how to trade them.
Investment capital
You should invest as much as you can afford to lose. During the initial phase, invest wisely in those cryptos that you are sure will appreciate in the future. You do not need to invest a huge amount. You can always try dollar-cost averaging and build your crypto portfolio. It is essential to have a diversified crypto portfolio, as cryptos are known for their volatility, and certain cryptos perform better than others.
You need not sacrifice your job to become a full-time crypto trader; you can always trade as and when you find time since the crypto market never sleeps.
Conclusion
As a beginner in cryptocurrency, you need to update yourself regularly and be in touch with a lot of developments that are happening on social media platforms. Such developments can have a direct or indirect effect on cryptos. Mainstream media outlets will seldom cover crypto until and unless it is groundbreaking.
