Apart from the lockdowns and economic crises the crypto trading has boomed in recent days especially at the start of the COVID-19 pandemic. According to experts, the volatility and huge trading volume are the main reasons. It is not only suitable for long-term trade but the short-term or day traders are also gaining good profit from the crypto market.
In this article, we will discuss short-term crypto trading including strategy making, and other beneficial information. We also discuss some primary things that a new trader should know.
How To Trade Cryptocurrency
For successful trading, you should have a strategy or plan. Here is a simple plan to get to know about crypto trading.
- First and important thing that you should decide is that either you want to own the digital currency or just want to be a trader in the market and want to gain profit from ups and downs of the market.
- If you want to own some cryptocurrency you have to open an account with crypto exchange there are many exchanges available. Choose a well-reputed and trustworthy exchange. And that exchange should provide full support to its customers in case of any issue. And did not charge too much for its services.
- If you just want to earn money by speculating on the price. You have to open an account with a broker. The same things and features will apply here that you have to see on choosing an exchange.
- The next step is funding your account to buy a particular currency.
- Buy a cryptocurrency that you want to trade and start trading.
Welcome to the crypto trading market, Now you have become a crypto trader. Now you can sell or purchase the cryptocurrencies but we will advise you to open a demo account before opening a real-time account. To prevent the high losses.
Brokers provide demo accounts but unfortunately, the exchanges did not provide demo accounts for practicing.
Crypto trading is actually speculation of digital currency prices. And you do not need to own any cryptocurrency in actuality. That’s why the CFDs and Forex are normally easy to learn the market for newbies rather than buying a real crypto coin through the exchanges.
How to Choose a Broker
The most important decision that you make is choosing a crypto empire signal for starting your crypto trading journey. They also work for you as your crypto wallets so do not dive in without research and investigation. Always consider these factors before selecting any broker or exchange.
Some of them special in crypto trading and some not. Some only offer limited services, while providing both options such as Forex and CFDs.
Choose the broker according to your needs. Some of them also provide currency multipliers. That increases leverage and risk rewards. Consider all options when you like to open an account for short-term trading or scalping.
Keep yourself Up to Date
If you are a day trader you need to update yourself with the current market situation. Crypto trading singles are one of the best options for this purpose. You can join a free crypto trading signal provider group on Telegram or paid crypto trading group. It’s up to you. What you want to rely on and what is more beneficial for you.
Because the news and events affect the value of currencies and make the difference in the loss and profit. You can get the help of mobile apps and other technical indicators for successful trading.
Before selecting any exchange make sure it is secure. You can check the reviews of people because your account hacked you will lose all your assets and they will never return back. Always choose a well-reputed and trustworthy exchange.
Different exchanges have different rates of commission and different structures of fees. Being a day trader you are going to make high-volume trades and many transactions. And a very little difference in rates can reduce your margin too much. There are normally three types of fees,
Trade fees. This is the cost of trading and changing different currencies. Which is different broker to broker
Exchange fees. This fee they charge upon using their trading platform and type of currency also affects the trade fees.
Withdrawal and deposit fees. These charges are fees for depositing or withdrawing money from the exchange. Some charge more on debit cards and less on wire transfer, while some of them provide free transactions without charges.
Choosing a broker is not an easy decision. Do not take it lightly. Do calculations, do research, check out the reviews of the customers and users. Take a trial. And then select one.