Learning to trade cryptocurrency on the exchange from scratch

Learning to trade cryptocurrency on the exchange from scratch

Contents of this article:

Cryptocurrency trading is one of the main types of earnings on digital assets. Trading is actively developing, so it is impossible to trade crypto without understanding the market and basic skills successfully. A beginner should study, understand the features of trading digital assets, and master the skills of analysis and investment.

We will tell you how the training of cryptocurrency trading on the exchange is built from scratch, what a novice trader needs to study.

Learning to trade crypto: where to start?

One of the important skills of a trader on the stock exchange is the ability to choose a promising asset. There are thousands of coins and it is important to invest in profitable crypto. It is difficult for beginners to conduct market research on their own due to a lack of knowledge, so it is worth choosing the most popular coins, about which there is a lot of information in the public domain at the first stages.

Learning to trade on the cryptocurrency exchange for beginners from scratch is the study of different strategies and trading styles. There are many strategies, and almost all of them require the trader to be able to analyze the market, take into account its current parameters and trends. For example, long-term and short-term trading is suitable for beginners, as well as scalping. You need to deal with each of the styles studying its varieties, features, pros and cons separately and carefully.

You need to analyze the market, and do it constantly to trade crypto effectively. Traders use two types of analysis that are needed to predict the cryptocurrency rate and its dynamics – these are fundamental and technical analyzes. A trader begins to understand the features of different assets, having studied fundamental analysis, their practical application, popularity, degree of involvement in the real economy. Mastering technical analysis is necessary in order to predict price changes based on open data, make profitable investments, and buy or sell an asset on time.

What should a beginner trader know?

A beginner should start with the basics when learning to trade cryptocurrency on an exchange. In short, a novice trader should know the following rules:

  • The volatility of cryptocurrency assets is high. You can invest only as much as you are willing to lose in case of failure. Investing all your savings is a big mistake, especially in one coin. You need to start investing with small amounts, diversifying your investment portfolio already at the first stages.
  • You need to evaluate the market in the long term. It is worth preparing for the fact that asset prices rise and fall, there is often a sharp increase. This should not be stressful for the trader; it will force him to make rash actions. You need to monitor the market carefully, have your own risk management system.
  • Market orders are helpful to trader. It is worth placing stop orders, especially in the early stages of trading, in order to control risks. If the coin reaches the minimum price set in the stop order, the transaction is automatically closed, so you set the amount of allowable losses in advance, protecting the deposit from draining.

Self-study or work with a mentor?

Self-learning to trade cryptocurrency on the exchange for beginners is not an easy process that will take a lot of time. You can study on your own using courses that are in the public domain, videos on YouTube, articles and guides from popular Telegram channels about cryptocurrencies. The difficulty of independent learning lies in the fact that a beginner does not receive constructive criticism, assistance in choosing a strategy, developing risk management. Theory is easy to learn, but practice is about making mistakes, and you can’t always work on them effectively by learning on your own.

You will study in a team of beginners under the guidance of experienced mentors or individually with a mentor by enrolling in a course from Crypto Crew. Our mentors will help you to learn the basics of trading faster and easier, enter the exchange with basic knowledge and skills, close the first successful transactions without losing your deposit. Learn to trade cryptocurrency from scratch on Binance and other platforms, and join our crypto community!