The Cryptocurrency Trading
There are many ways to earn cryptocurrency and one of them is by trading. But trading on cryptos are more volatile than foreign exchanges and Stock trading. Traders should not rely much on Technical Analysis only but should also on fundamental analysis. Traders must focus on risk management and trading setups that are fit to their appetite. The question here is how to begin? How to start?
BEFORE STARTING TRADING JOURNEY
1. Create an account on a Cryptocurrency exchanger:
There are many cryptocurrency exchangers on the web that can use for trading and investments. The Binance & Bittrex exchangers are two of the best performing crypto-exchangers on the web.
2. Verify using valid I.D.
Verifying of an account is necessary for anti-fraud and scam. It is better for the created account to verify to get more benefits like airdrops. The exchangers that don't have ID verification or KYC- Know Your Costumer- on their web homepage do have protocol for Web 3 wallets like Metamask, Trust Walletconnect, or TronLink.
3. Deposit using P2P on Binance or Credit card/ Debit card on Bittrex.
After full verification, funding is necessary for a trader to profit. P2P or Peer-to-Peer transactions for funding exchanger wallets are the most efficient because of the lesser fees. The same on Bittrex's CC/DC.
4. Deposit using Crypto Faucets or Airdrops.
A trader can fund an exchanger wallet without depositing any amount from an e-wallet or bank account. He can claim to crypto faucets or airdrops to get extra capital for the exchanger wallet. Claim free crypto in Pipeflare or go through this LINK for more reliable crypto faucets.
5. Start Trading.
Find a good indication of price action to position a trade. A trader can trade on Spot or Margin trading. Good risk management is a good discipline for trading. Knowing and learning different technical indicators are the best way to profit and grow.
Knowing the basics of Trading
1. The Candlestick
The red and green bar represents the price movement of the pair. The red bar represents the Seller's side and the Green bar is for the buyer's side. They differ in open/low price where green bar's open is on bottom of the bar while close is on top - opposite of the red bar where close is at the bottom and open at the top. The green and red bars are the same on High and Low prices. The candlesticks indicate the possible next move of the chosen pair.
2. Time frame
Price changes in respect to time but have different time allocations. The 1-minute time frame is for scalper traders who position trades take profit in less than seconds or minutes. Scalpers trades many positions and take small profit on every trade.
3. Channels
It is the line drawn from group of candlestick pattern to convey the possible next outcome. Some channels have parallel lines to indicate the support and resistance.
4. Support and Resistance
The support and resistance is the area where traders know that price may bounce back and forth inside. Support is the level where lowest price is the point to push up. Resistance on the other hand is the level of possible highest price may reach and indicate pullback. Support and resistance are not 100% accurate on every trade.
Strategized your Trades
1. Scalping
Scalp trading trades on 1-minute chart to 15-minute chart where multiple positions are open and profit/loss small per trade. It is the fastest in Profit and Loss ratio. A trader can gain or lose a profit in less than a minute in scalp trading. Do risk management, put a stop-loss on every trade.
2. Day Trading
It is a less stressful trading setup. Positions are open within a 4-hour chart to 1-day chart. Trader can open position and leave it for a day. Day trading is good for traders who are busy doing other things. These setups also have stop loss and tip point to gain good income.
3. Hodling
Hodling or holding of crypto is the longest open position in trading setups. It takes a 4-day to 1-year chart and stop-loss is optional. Hodling concentrates on long term investments.
To Summarize:
Before Starting Journey
- Create an account.
- Verify.
- Deposit.
- Optionally use faucet/airdrop.
- Start.
Basics of Trading
- Candlestick
- Time Frame
- Channel
- Support & Resistance
Strategize
- Scalp trading
- Day Trading
- Hodling
