As we move away from the midpoint of this year, the cryptocurrency frenzy that gripped the world feels like a long time ago. Investments have taken a turn and doubt surrounding cryptos and their decrease in value have crept into the media. However, there is one aspect of cryptocurrency that has greatly benefited from the price swings and movement:
From our testing, the last 6 months have been some of the best trading we have seen with cryptocurrency in the last 2 to 3 years. It is an exciting time to trade in this market so let’s take a look at how you can start crypto trading today!
Step 1 – Research Cryptocurrency
Knowing the basics of what you intend to trade is going to be really valuable across the entire lifetime of your trading career. We go over this in the Crypto Basics Course specifically because it is vital to have this knowledge. Having insight and understanding of cryptocurrency gives you a lot of benefits.
Namely, your consumption and analysis of news is going to be at a higher level. This is going to transfer into more profit with your trading, primarily through lowered risk. Another bonus will be that you can explore other areas of the cryptocurrency market. Investing still remains an option for projects such as apps and platforms – you just need to know about them.
Step 2 – Find a Reliable News Source
We can’t stress this enough. You need to find a news source that can provide quick and reliable news. There are a lot of cryptocurrency news sites out there that also have dedicated apps. You can download these onto your smartphone and see which ones are quicker with their notifications. We suggest trying a few different ones and comparing them to one another. Using your phone to get news is without doubt the easiest and quickest way to receive news on the go.
There are crypto dedicated news sites such as Coin Desk, Coin Telegraph, CCN, but a great source of news is also social media. Reddit, Twitter, and Instagram all have active crypto news and personalities that can be great sources of news.
Cryptocurrency is indeed sensitive to news – on one hand that’s good because the market is more volatile, giving us more trading opportunities. On the other hand, if you are not up to date with news and announcements you can get caught out and lose a trade.
But that is why we always strongly encourage traders to have trade, risk, and money management plans that take this into account. Before you get there though, you may need to know a few more things…
Step 3 – Trading Basics
If you are an experienced trader, you already know the basics. You could instead try to find experiences of other cryptotraders via podcasts or videos.
But for any new traders out there, you obviously need to look over the basics and fundamentals of trading. There are a lot of great education sites out there (including us!) which we encourage you to look into. The Crypto Basics Course includes the very basics of trading which you can quickly look at before dedicating more time to learning all of the fundamentals.
You’ll be happy to know that this stuff can be learnt by everyone. Trading is very accessible which is why so many people learn how to become traders.
Step 4 – Find a Broker
Finding a broker that offers cryptocurrency is an important step. This is a company that will be regulating the fees you incur and making money from you. That’s fine – it is a business after all – but you need to make sure you get the best broker possible.
If you are crypto trading, we strongly advise that, when starting out, stick to the big name currencies. All brokers will offer trading with these (Bitcoin, Ethereum, Litecoin). Currently, established forex brokers are adopting crypto trading which gives an added layer of safety. These are companies who have reputations to hold up and a larger client-base. We go into some detail on how to pick the right broker in our Crypto Trader Course.
We have a range of crypto broker reviews available on our site. Check them out and see which one suits your needs! A lot of the popular, established brokers are now offering crypto trading so you shouldn’t have any problem finding one that is a great match.
Step 5 – Create a Demo or Live Account
So, you’ve chosen your broker – now it’s time to open an account! Whether you are an experienced trader or not, we suggest making a demo account first. Cryptocurrency trading is different to other types of trading – it is faster, more volatile. It is really important to test the waters before diving right in with this.
As a new trader, a demo account is without doubt your first step. Check out the platform, look at the charts and take a few trades! A demo account does not have any money in it so you are free to explore what it is like to trade with the broker.
Step 6 – Set Up Your Charts
This step is impactful to cryptos because it is more important to have a clear picture of price with a volatile currency. All brokers will have a trading platform that you can use. This will include charts, like the one below:
This is how you analyse and read price movements. Typically, brokers offer a platform called MetaTrader 4 (or 5) which does the job well, but it does have restrictions. You will not have access to all the timeframes (30 minute, 1 hour, 2 hour etc.) which directly impacts your trading, visually it is limited, and there is very little customization open to you.
We recommend researching charting software that is available online. There are some great options out there that deliver a good charting experience. TradingView is our go to for this because they really are head and shoulders above the competition. It is actually a social-media platform for traders with a good community behind it – you might enjoy becoming a part of it! You can check it out here.
Step 7 – Start Trading!
Congratulations! You are all prepped and ready to take on crypto trading. It costs you nothing but a short sign-up time to demo trade with cryptocurrencies, so why not try it out? It is a fun and exciting new corner of the trading market that has shown some real future promise in the last 6 months.
It is a great time to jump into crypto trading and many people don’t realise how big it is getting. Before you jump in, you may want to consider a trading strategy and some money/trading management plans. But for now, you know how to start crypto trading – get out there and take it for a ride.