What do you need to know to start trading cryptocurrency?

Just a year ago, Bitcoin was worth about $ 9,000. Today, for one coin, the owner can already gain $ 50 + thousand. At the moment when cryptocurrencies are a hype topic, many people especially want to dive into it. Suddenly I won’t have time, right? But how to enter this world correctly? What questions should a future crypto investor or trader clarify for himself?

Here are some rules to follow. It is important to understand that this material is not a recommendation for trading, it was created with a reference and informational purpose. The information gathered here can be helpful as it has been tested by trial and error.


Explore the selected project.

Usefulness is the first thing to highlight for yourself. Financial instruments are popular today, such as loans, investments in companies for the sale or rent of housing, technologies for alternative energy supply, and so on (DeFi). Without usefulness, the project will eventually cease to be of interest to the community – this is the first thing. Second, such projects will be more susceptible to artificial influence of interested parties, such as trading and speculation.


Cryptocurrency ratings cannot be ignored, yes. But.

There are top altcoins, they have already got their audience. But on such coins, it is recommended to adhere to a holding and small investment strategy.


Build on helpful resources.

Bookmark sites on your computer to track the dynamics of asset values. For example, CoinMarketCap, CoinGecko.


Get basic knowledge of what an order is.

What varieties are there, how does each specific one work. It is necessary to find the least “disease-causing” form of trade. At the start, as a rule, refer to the stop limit.


Study the tools of a specific cryptocurrency exchange.

Carefully and attentively. As a rule, they provide tables of price dynamics, place order books, in which all conducted transactions, longs and shorts are visible.


Define a strategy.

What kind of trade will you be engaged in, what will be your strategy? Is it fast trades, lots of assets, small investments, day trading? Or investments “for the future”, measured trade. In general, again – longs and shorts – go deeper into this topic. At the start, and in general, given the riskiness of cryptocurrency trading, it is better to act carefully, test small amounts.


Study the base of technical analysis.

It is recommended to be surrounded by books for a while. Murphy will do well. He explains in simple and understandable language what patterns are, how to track trends, how to evaluate statistical data. Perfect for a start.


Choose a cryptocurrency wallet.

Cryptocurrency wallet – be sure to study before opening what they are and which one is right for you. For example, it is recommended to keep the bulk of assets in a cold wallet, and use a hot one for transactions.


Free distribution of cryptocurrency.

If you consider airdrops as a way to delve into the world of crypto, cryptocurrency, more precisely, a crypto project, most likely has just appeared. You have to be careful. In the environment, it is recommended not to rush to invest, but after receiving it for free, take a closer look. Often, after such marketing activities, the price rises, but after some time it stabilizes and falls.