If you have been on the internet, then you have probably heard about the amount of money people make in trading cryptocurrency.
Cryptocurrency has become the most talk about for nearly two decades. People are making tons of profit every day, and you could probably be one of them.
With your cryptocurrency trading skills, you can even be employed by top companies for you to trade and manage their funds, which is good leverage if you don’t have the money to fund your own account.
In this post, I am going to walk you through the 5 major steps that will help you learn how to trade cryptocurrency.
In addition to that, a series of frequently asked questions as regards to learning how to trade cryptocurrency are going to be answered.
Oftentimes, I get the question: how can I make money online with my smart phone? And to my greatest surprise, after approaching these individuals, I often notice that they are vibrant youths who are aware of the cryptocurrency industry but do not leverage it simply because they think it is the hardest thing to do or that they can’t afford the money to start.
As for this post, I am not going to get into the different ways that you can make money on cryptocurrency, because that would make this post more diverse.
There are two major challenges in learning how to trade cryptocurrency. One is trust, and the other is patience.
Why do we say this? You may be wondering.
Here are the reasons:
People (beginners) often lack trust in their trade analysis and always resort to relying on a crypto guru to decide their buy and sell orders, and that does not make any sense. It is better that you learn how to trade cryptocurrency with skill and authority so that you will get the most out of it.
On the other hand, some people are not patient enough to learn how to trade cryptocurrency, but rather they rush and put in money without adequate knowledge on trading signals or justified opportunity.
Underlying crytocurrency are liquidation losses, and you probably don’t want to fall victim to that. That is why it is very important that you follow along with our guide on how to trade cryptocurrency.
Table of Contents
5 Simple Steps On How To Trade Cryptocurrency
In your trading journey, there are some certain steps that need to be taken in order to hasten your learning process. Without following these steps, you might find trading boring and will certainly give up.
Here is the summary of the steps to learn how to trade cryptocurrency.
Step1: Open a trading Account.
Step2: Source materials (courses).
Step3: Learn technical Analysis.
Step 4: Put what you’ve learned into practice.
Step 5: Look for additional ways to learn and practice.
Step1: Open Trading Account
If you have an account set up already, then you can probably skip this step. But for the sake of those just starting out, it is wise to include this.
Before you start trading, the first thing you want to do is look for a well-trusted broker that is licensed in your country and open a brokerage account with them.
Please note that even if you have had an account before, it is wise to open a professional account now if you want to be more serious.
There are certain factors to consider before making your choice of brokerage, factors like government licensing (as we have stated earlier), Minimum deposit, air fees, and lots more. I am not going to get into that as it will make this post diverse. You can check out our page where we reviewed the top cryptocurrency brokers by clicking here.
Step 2: Source materials (Courses).
Once you have gotten a brokerage account setup with a trusted broker, the next thing you want to do is to source for educational resources that will help you.
In this global era, there are tons of places to get materials for anything you want to learn. You can use Youtube, Udemy, Google, and a vast number of other places to learn. Also, some brokers offer free educational resources as part of their offering, and leveraging this will also go a long way.
Also, social media is another great opportunity. Look for serious social media groups where individuals share their trading experiences and join them. With this, you will be able to counter some of the challenges you are going to face.
Furthermore, the importance of staying in touch with the market on a regular basis cannot be overstated, and one of the simplest ways to do so is to use mobile phones in your trading. As you will be with your phone for at least 80% of the time, it will give you more chances to explore the market. There are lots of good trading apps out there, and you can leverage one.
Step 3: Learn Technical Analysis.
Before starting to learn technical analysis, you need to make sure you are familiar with the trading platform and are able to manipulate it to perform different actions. Some people neglect this and jump right in to learning analysis, but it will later draw them back.
Once you are familiar with the trading platform, you move on to learning the basics of candlestick partern. Knowing the candlestick parten will assist you in identifying and leveraging signals. Candle stick pattern is one of the fundamental things to learn because when you get higher, you will probably need it.
When you get used to some of these basics, you can then start focusing your attention on a trading strategy. Depending on your personality, you can choose from many different trading strategies. Some of the most popular trading strategies are scalping, day trading, and position trading. You can learn more about it here.
Mastering a particular trading strategy helps you make a consistent profit because the signal of the strategy always comes your way and you have less work to do.
Step 4: Put what you’ve learned into practice.
Once you have learnt technical analysis and other trading basics, it is now time to start trading.
At first, it is always recommended to start with a demo account. There are lots of brokers that offer demo accounts, and you can check them out here.
To actually know if you have learnt something, you put all you have learnt into practice and find out if it will work.
When you are doing this, you always want to make sure that you follow the trend and also the market news. There is so much news that goes around that has an influence on the market, and you always want to make sure you leverage it. Some of these news sites are Yahoo Finance, Google Finance, and CBC, which are the most trusted.
Doing this again and again, you will find yourself growing professionally in no time.
Step 5: Look for additional ways to learn and practice.
In any skill, learning is always a continuous process. As you continue trading, you will continue seeing different instances that are unusual.
Once you are at this level, always try to conduct standard research when issues come up. This will expose you to more resources and also improve your market psychology.
Joining different communities is also a smart move at this level. You can go on Facebook, Instagram, or Twitter and search for legit crypto groups where important things are being discussed. As for me, this has greatly aided in all of the skills I have learned, and this is the reason why I continue to stress on it.
What Are the Differences Between Trading and Investing in Cryptocurrencies?
The main difference between trading and investing in cryptocurrency is the time the coins are held before being sold. In trading, coins are bought and sold in a short space of time, while in investing, they are kept for a year or more.
Although trading is generally referred to as buying buying and selling of cryptocurrency over a short period of time, investing can also be classified as trading, but in that case, it would be called position trading. This is because a position takes a year or more to play out.
What Are Some Common Trading Strategies?
Some of the common trading strategies are scalping, day trading, swing trading, and position trading. Each of these strategies has its pros and cons and is solely determined by the lifestyle of the trader. You can read more about trading strategies by clicking here.
Between Technical Analysis and Fundamental Analysis, Which is More Important for Trading?
Technical analysis is better suited to trading than fundamental analysis, which takes a longer-term view, because it looks at the short-term picture and can help you identify short-term trading patterns and trends.
How Do I Teach Myself How To Trade Cryptocurrency
You can teach yourself how to trade cryptocurrency by sourcing free material online, keeping a closer eye on the market, following gurus, and implementing the knowledge you have gathered.
Doing it this way, you will find yourself growing professionally in no time.
How do I start learning How To Trade Cryptocurrency?
You can start learning how to trade cryptocurrency by opening a demo account with a broker that offers it and keeping a close eye and trying to implement what you learn.