By Mark Ackman
Getting started with cryptocurrencies can feel a little bit intimidating, especially when you don’t know where to start. And if you happen to have trouble capitalizing on your ambition to start trading, then this guide will show you exactly how you can get started with trading.
Step 1: Open an Account with Your Preferred Broker
You may have some misconceptions about what to expect when it comes to trading in crypto. However, the truth is that it can be very simple as long as you know where to start. So the first place to start is choosing your preferred crypto trading platform. You can do research to find the one that you like the most, but make sure that you check all of the features that it has to offer.
You should also make sure that it has all of the crypto assets that you want to trade in when you start and as you continue to trade. When you choose one, you now have to create an account, which will then let you start trading.
Step 2: Add Funds to Your Account
After you’re done creating your account, you want to now put funds into your account to start trading. You can connect your card or your bank directly to your account, which will let you both withdraw and deposit funds with ease. You should be especially careful that the platform you choose has good security, as a hack could also leave you compromised.
ACH deposit is a great place to start for most beginners, since it is usually free in most cases, and can be a lot easier to manage. You will also be able to choose different accounts in most cases depending on how much you add to your account.
Consider the features you want, but there is no need to add so much at an early stage of trading.
Step 3: Start by Choosing Just One Asset to Invest In
Now that you have your account set up and it has the funds you need to trade, you can finally start. And while it might seem very tempting to start trading in various types of cryptocurrencies in small amounts. However, you don’t want to start your trading journey with a major loss, so you should instead focus on a single asset.
By trading in just one asset at the beginning, you will be able to learn more about the fundamentals of trading. Granted, you are taking on a lot more risk, so you can trade in a much safer asset like Ether or Bitcoin.
You can slowly work on your risk management strategy, and diversify the trades that you make with small but incremental investments.
Step 4: Choose A Strategy to Go with It
Now one of the major reasons why you’re better off sticking to just a single trading asset when you start is because there are many factors worth considering. These factors dictate how the market will turn, and if there will be some sort of movement that could lead to a loss.
You can learn more about the different trading strategies in a course or online, as they go into detail about why you want to be trading a specific way. They will focus on risk management, as well as the philosophy of trading.
However, you need a good trading strategy if you want to skip the difficult parts that could lead to you possibly losing your money. It will help keep you safe from unnecessary risk and will teach you a little more about the market at the same time.
Conclusion
Starting out your trading journey is never easy, but it slowly will as you continue to trade. Just remember the steps above and always be patient with the trades that you are making, and avoid any emotional decisions. The last thing that you want is to lose a lot of money because you were impatient.