Cryptocurrency markets keep on growing. Since these assets can generate substantial returns over time, many investors and traders invest their money in them. However, it can be difficult for inexperienced users to do everything right, so we decided to prepare a beginners guide to cryptocurrency.
How to Trade Crypto: 5 Steps of the Cryptocurrency Guide
- Step 1 – Choose a cryptocurrency platform. Currently, there are many of them, but we recommend WhiteBIT. This exchange offers cryptocurrency for beginners, low fees and high security.
- Step 2 – Deposit funds. To work with cryptocurrencies, you need to transfer the amount in dollars, euros or any other available fiat or cryptocurrency.
- Step 3 – Study the market. Buying cryptocurrencies without knowing them can be very risky, so it is recommended to carefully analyze assets before trading cryptocurrencies.
- Step 4 – Choose a specific cryptocurrency. Although hundreds of cryptocurrencies are available for trading, you should focus on the ones with the best price predictions.
- Step 5 – Trade cryptocurrencies. Once you have a WhiteBIT account and have transferred the required money, all you have to do is open an order to buy coins.
Is Crypto Trading for Beginners a Good Idea?
It all depends on the investor profile. Typically, cryptocurrencies correspond to innovative projects and, therefore, have more volatility. Therefore, you should be aware that prices can fluctuate a lot.
To find out if cryptocurrencies are a good investment, you should analyse their fundamentals and how their price has behaved in the past. So you can try to predict what will happen in the future.
Diversification
The interesting thing about buying cryptocurrencies is that they allow for diversification. With over 18,000 cryptocurrencies available, investors can buy absolutely any of them. Do it according to your needs, goals and time horizons, as well as manage risk, balancing with some stablecoins that follow the dollar or gold.
Using the tips from this guide to cryptocurrency, a novice investor will have a better chance of making a profit than a person who starts making purchases without an educational background.
