Profitable cryptocurrency trading for the beginner: other elements of preparation

In addition to the choice of cryptocurrency and strategy, a beginner should take a few more important steps:

Choose a crypto exchange

There are many resources for trading cryptocurrencies now, and they vary significantly. For example, registration on an exchange can be complicated or simplified. Exchanges from the first category are on average more reliable.

If anonymity is important to the trader, it is worth choosing exchanges that declare it as one of the main advantages. If it is not important, then it makes sense to choose large exchanges, involving a procedure for identification, but characterized by reliability.

It is worth to read reviews of the exchange, find out who and when it was created, what is the reputation of its founders, and what is the reputation of the exchange token if any. So you have to remember that not always the exchanges have the coins you need. You might need to google how to buy eclipse crypto in order to find the right exchange with the altcoin you need.

Also important is the transaction fee. An exchange with a too low commission may not be entirely reliable. But if the strategy involves a large number of transactions on a daily basis, it is worth calculating the commission costs and comparing them with the possible risks associated with the unreliability of the exchange.

If transactions will be made relatively infrequently, it is better to choose the exchange for reliability, rather than for the size of the commission.


Decide on a trading terminal

You have two choices: either limit yourself to exchange functionality, or purchase or download a free program for trading.

In the first case, you should pay attention to the functionality when choosing a cryptocurrency exchange. It must be understandable, convenient and fast.

There are not so many programs for trading; there are even less programs for trading cryptocurrencies, though some traditional terminals allow trading cryptocurrencies as well. Free terminals are often unreliable and crash from time to time, which can lead to losses. Paid ones are often unreasonable for newbies: it makes no sense to pay $100 for a program if the trader trades $50.

Beginner traders are usually advised to make do with exchange functionality. As a rule, exchanges are equipped with all necessary tools for a beginner, and in programs there are too many of them: a beginner doesn't know most of them and will not use.

Choose trading tools, which will help to analyze the situation in accordance with the strategy
For example, if the strategy is based on a trend reversal, it is necessary to use tools that help to predict the reversal point. If volatility is important, it is necessary to constantly see its index. But you should not choose too many instruments. It is better to choose no more than three for each strategy and study them thoroughly.


Get acquainted with the theory of trading

There is no point in studying dozens of textbooks in detail, because trading on stock exchanges, currency exchanges is different from crypto-trading. But it is worth to look through two or three books for general acquaintance, to read articles, forums and to watch trainings.

You don't have to try to memorize absolutely everything you've read and heard. Mostly trading theory and practice are at odds because every asset has its own peculiarities and a lot of theory cannot be applied in practice.

The most justified is communication with another trader, analyst or expert, who worked with the traded cryptocurrency. Sometimes you can find such a person in communities of traders or on websites of consultants.


Julia Jukas

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