How To Get Started In Cryptocurrency Trading As A Beginner

Learn about the different cryptocurrencies in the market and their behavior, the security of the system, how each process works, as well as the investment strategies and modalities that you can follow. In the same way, you must know the basic terminology of trading and merge this theory with practice until you master both.

Mainly, this money cannot be used for basic expenses and must be an amount that you are willing to risk, due to the risk of all these operations.

On the other hand, the most appropriate is to invest only a small portion of the capital; remember that you are starting out and putting all the money in a single transaction that ends in loss would be lethal to your career as a trader.

When you’re ready, you can invest in several cryptocurrencies simultaneously and apply automated orders with platforms like Bitsgap, with which you can close positions automatically and instantly in case of profit or loss; Thus, you can minimize the level of risk.

You can also use this trading bot to control your investments and facilitate your activities, so you will save time sitting in front of the PC.

Some trading strategies are differentiated by the time of each order. For example, Day Trading applies an order in the morning and in the afternoon, while other methods consist of orders that are withdrawn in seconds or minutes (Scalping).

You can also choose to keep trades open for days, weeks or months with Swing Trading or trade long term with Position Trading. This will depend on the goals you want to achieve when trading cryptocurrencies.

Again, the choice will depend on your goals: if you want to invest short term or with leverage, the broker’s low fees will be more convenient.

Even so, most of the traders prefer to use exchangesbecause they are useful for buying and storing cryptocurrencies and, due to their characteristics, they turn out to be the most convenient option for those who are starting to trade.

Take advantage of the benefits of trading platforms with demo versions of real markets.

In these you can invest without using real money and practice your level of analysis on the graphs, movements and results of the transactions. Also measure your ability to respond to crashes or unexpected increases in prices; Thus, you can put your strategy into practice before investing with your cryptos.

Although the blockchain it is a secure block structure, you must be careful with your data.

That is why you should avoid sharing the access keys of your ewallet with third parties, leave your cryptocurrencies stored for a long time in a exchange, bypassing two-factor authentication systems, or making transactions carelessly. The latter can cause considerable losses if you make a mistake in the data.

In countries like Spain you must declare the earnings on cryptocurrencies. For this reason, it is necessary to declare the gains from buying and selling, from cryptocurrency swaps, as well as capital gains to avoid tax inconveniences. However, if you incur losses from this activity, reporting them is optional.

Having a detailed record of each trading operation carried out is very useful not only for tax purposes, but also to have control over all transactions and their results over time.

Different actions and external events can influence the market. Cases of money laundering, hacking or cyber theft, as well as different news of a world nature, can positively or negatively influence your activities.

For this reason, it is essential that from day one you report on national and international news and analyze them simultaneously with the behavior of cryptocurrencies.

Getting started in trading is not difficultIt’s just a decision that requires patience, discipline and perseverance. If you focus on these three actions and our recommendations, you will surely achieve positive results.