Even though crypto trading and investments are incredibly popular in the last few years, they are far from being something simply elementary. Trading requires deep knowledge of the market and practice. Before purchasing digital assets, you should conduct research. In this article, we will explain cryptocurrency for beginners and talk about the critical things about trading crypto and the place where you can practice it.
Beginners Guide to Cryptocurrency
Crypto is digital money that is not subject to central banks and has no physical form. Governments do not control the emission of digital assets. Their rates increase and fall daily, creating a lot of space for receiving a profit. The essence of trading is purchasing and selling coins at different rates. Since fluctuations in crypto values happen every day, it is possible to make money daily and in the long term.
There are popular trading techniques:
- Day trading
- Position trading
- Swing trading.
Trading crypto for beginners using day trading, swing, and scalping might be somewhat complicated. These strategies imply short periods between opening and closing positions in the market, which is really challenging for inexperienced users. So we recommend starting with the position trading method.
Some Tips on Cryptocurrency for Beginners
First, never borrow money for investment and never spend your last finds. Experts recommend spending 10% of your monthly income on buying digital assets.
Secondly, diversify your portfolio. Buy both popular and expensive coins, for example, BTC, and also consider buying less known coins. Research young projects and startups and pick those having significant communities and supporters.
The next crucial thing – study crypto charts. Charts reveal a lot of helpful information about how the asset behaves during different market trends and helps to forecast future prospects. Practice as much as you can and begin with small amounts of crypto.
To learn more about trading and strategies, welcome to the WhiteBIT blog. It offers a comprehensive cryptocurrency guide and practical tips for trading. To practice all the trading tools, register in the WhiteBIT crypto exchange.