How to trade crypto

Image Source: FreeImages‍

Trading crypto is not quite like trading stocks. It has a certain edginess because its such a new financial frontier. Applying the basic investment and trading principles is a great foundation.

Where to trade your crypto

It’s important to know where to trade your crypto. The most popular way to trade cryptocurrencies is on an exchange. An exchange is a place where you can buy, sell, and trade cryptocurrencies. Crypto exchanges have some pretty amazing features which can include trading bots to automate trades for newbies and pros alike. A good place to start is with trading platforms. You can use trading platforms to buy, sell, and trade cryptocurrencies.

The best platforms have plenty of functions, tools and guides to get you set. Binance is a large global exchange with more than 100 million users. You can use other trading platforms to buy, sell, and trade other cryptocurrencies too like Kucoin which is very easy to use and have a lot of automated bots you can use with the benefit of seeing the results of others that have used them.

How to trade your crypto

Now that you’ve got a little knowledge of where to trade your crypto, it’s time to put it all to the test!

Long or short, trend, TA, fundamentals, FOMO, leverage, margin. They all have merit and you can do all of them. Starting out though most traders are buying to see the price of their crypto rise in value. The thing with crypto versus stocks is that stocks can go up in smaller percentages and maybe factors of X over time. Crypto can do that in minutes. 5x, 10x, 20x, 50x is not uncommon. Whatever you do, discipline is key. Start with a basic plan and stick to it. Win or lose you will learn a valuable lesson.

Click here to find some amazing crypto trading books on Amazon.

The best way to trade your crypto

Plan and execute the trades. Take profit and often. Reinvest, set limits and take breathers. Assess your play and that of the market. The price is the action and the indicator. The market is not rational and everyone is playing a different game to you. So a little win and often can be a great way to get ahead rather than waiting for the huge lifetime trade!

Simple steps when trading your crypto currency

Here are three simple steps to take when you want to make money from trading crypto:

1. Plan.

Before you buy or sell a single coin, you need to outline your entry, exit and the why of the trade. Earn and more importantly earn!

2. Bank.

Do not spend all your money at once! Place a small percentage on a trade and stick to it until you build your bank and can handle the risk of the trade both financially and emotionally.

3. Execute.

Execute the plan. Do not play it by ear or let the dice fall as they may - that is gambling. Be objective and decisive.

Conclusion

Trading is not just for experienced money managers. It can also be done by individuals who have little experience in the market. There are many ways to trade crypto and these are only a few of the many ways. You need to test different strategies that work for you. Oftentimes, it's the little things that make a huge difference in the end.

The nice thing about trading is that you don't have to be a genius to do it. You just need to be comfortable with the concepts behind money management like discipline, risk management and taking a profit. Start small, learn, adapt and evaluate.

Look at the price charts, zoom out, take a moment and then execute the trade!

Affiliate Disclaimer:

Please keep in mind that I may receive a commission when you click on my links, fill in details and/or make a purchase.