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Cryptocurrency Trading for Beginners: A Complete How-To Guide!

Cryptocurrency Trading for Beginners: A Complete How-To Guide!

 

 

Cryptocurrency has come up as one of the most sought-after assets for trading and investing. Retail investors and institutional investors are trading and investing money heavily in Bitcoin and other crypto assets. Digital assets have extremely high volatility. With the high fluctuation in price (where a 10% price swing is considered normal), you can trade cryptocurrencies to get much higher returns than traditional investments.

 

When you trade cryptos, your risk of losing is high because of the high volatility. That’s why timing your entry to and exit from the market is very important. You have to buy at a low price and sell at a high price to make a profit.

 

How can a Trader or Investor make a Profit from Cryptocurrencies?

 

If you want to trade Bitcoin BTC or other cryptocurrencies, you can do that in two major ways:

  • Buy and HODL

Buy one or many cryptocurrencies and hold (misspelled as HODL) them for a longer period of time in the anticipation that the assets’ value will increase.

 

Suppose, you bought 1 Bitcoin back in January 2017 when the price of each BTC against the US Dollar was around US$1,000. If you held it till now (August 2021-end), the price of each BTC would have increased by 50-times in the last 4-years  as the price of each Bitcoin is currently hovering around US$50,000.

 

Therefore, an investment of just US$1,000 back in 2017 would have become US$50,000 now, within a span of just 4-years.

 

  • Active Trading

You’ll be considered an active trader if you buy and sell cryptocurrencies to make a quick profit by taking advantage of short-term price movements. You can buy crypto at a lower price, hold it for a short period of time, and make a profit by selling it when the price increases.

 

There are mainly 2 types of active trading:

  • Swing Trading

This is a special kind of trading where a trader tries to make short- to medium-term profit in an asset including cryptocurrencies. It also involves holding cryptos. However, the HODLing period usually varies from a few days to several weeks.

 

The swing traders usually use technical analysis to analyze price trends and patterns. However, they also use fundamental analysis to look into the overall prospects of the cryptocurrency they are trading and investing.

  • Day Trading

This cryptocurrency trading technique involves buying and selling of cryptos within a single trading day. These well-educated and well-funded traders use small price movements in highly liquid markets (such as the cryptocurrency markets) to make a profit within a few hours.

 

Day traders are attuned to market psychology, news, technical factors, and others. They use this information to predict significant and sudden price movements and consequently make a profit.

 

Some of the popular day trading strategies are:

  • Scalping

As per this strategy, a scalper makes numerous trades throughout the day. They make small profits by using small price changes.

 

  • Range Trading

The range traders keep the list of support and resistance levels with them so that they can make decisions to buy at a low price and sell at a higher price.

 

  • News Based Trading

When some positive news about a cryptocurrency (such as an upcoming hard fork’s date announcement or upgrade) is there, the price volatility of that crypto increases. News-based traders utilize positive news to make a profit.

 

  • High-Frequency Trading

There are many sophisticated algorithms that utilize small, short-term market inefficiencies to make a profit for you.

 

These algorithms are either fully automated or semi-automated.

 

  • In the case of the fully automated ones, the algorithm (such as NapBots.com) trades on your behalf to provide profit.

 

  • In the case of semi-automated ones, the algorithm analyses the crypto market or a particular cryptocurrency and provides you all the relevant information so that it becomes easier for you to make profitable trades.

 

How to Select a Cryptocurrency for Trading?

 

Whether a cryptocurrency is good for trading or not depends upon its real-world application and usability. Let us consider, the largest cryptocurrency in terms of market capitalization, Bitcoin. This crypto has a finite supply (capped at 21 million) and has the most widespread adoption.

 

The easiest and surest way of choosing crypto is to select one or multiple cryptocurrencies from the largest 50 cryptos (in terms of market cap). Try to avoid small-cap cryptos because they come with greater risk factors than the largest ones such as Bitcoin BTC and Ethereum ETH.

 

Generally, the top 50 cryptos (in terms of market cap) are the ones that either have a solid team and community as backup or have the maximum potential in the future.

 

The top 10 cryptocurrencies for cryptocurrency trading are:

 

  1. Bitcoin BTC
  2. Ethereum ETH
  3. Cardano ADA
  4. Binance Coin BNB
  5. Tether USDT
  6. XRP XRP
  7. Dogecoin DOGE
  8. Solana SOL
  9. USD Coin USDC
  10. Polkadot DOT

 

However, the most prospective altcoins for investment and trading are the DeFi tokens. In the last 6 months, the DeFi coins have increased by over 500%. Some of the most promising DeFi to trade and invest are:

 

  1. Synthetix SNX
  2. Solana SOL
  3. yearn.finance
  4. Uniswap UNI
  5. Terra LUNA
  6. Polygon MATIC
  7. Chainlink LINK
  8. Wrapped Bitcoin WBTC
  9. Avalanche AVAX
  10. Dai DAI
  11. Pancakeswap CAKE
  12. Aave AAVE
  13. Tezos XTZ
  14. The Graph GRT
  15. Maker MKR
  16. Compound COMP

Buy Cryptocurrencies, Stocks, and Gold Now

 

If you are ready to invest in stocks and cryptos or buy Bitcoins through online brokerage accounts of centralized or decentralized cryptocurrency exchanges, you can do so in a legit way by investing through stock investing and cryptocurrency apps. You have to open an account with such an exchange or online broker (including trading apps and invest apps such as TD Ameritrade). Then verify your details (including basic personal information) and fund your stock or cryptocurrency trading account.

 

The best thing about Bitcoin and crypto market is that the transactions are done without the involvement of banking entities. This is one of the reasons why more and more investors (including corporates, venture capitals, and institutional investors) are heavily investing in cryptos.

 

You can start depositing funds to your stock or crypto exchange account to buy company shares or cryptocurrencies. This can be done by simply connecting your online banking account (savings accounts, checking accounts, or other account types). Besides transferring fiat currency money online through bank transfer, you can make payments with other payment methods including credit cards, debit cards, and others.

 

If you need further assistance, you may consider taking help from the vibrant and helpful trading communities. You can trade cryptos with credit cards (business credit cards, personal ones, or citi custom cash cards), debit cards, or other payment options through reliable crypto trading web platforms.

 

You can also check the savings calculator to know how much you should save on a weekly, monthly, or yearly basis. Check the financial news to know more about the prospects of various assets so that you can build long term wealth.

 

In case you are bullish on the future prospects of gold, stock and ETF trading, crypto market, Bitcoin BTC, Ethereum ETH, Polkadot coin, Bitcoin Cash BCH, Litecoin LTC, Ethereum Classic ETC, Bitcoin SV, Wrap Bitcoin, and other altcoins, you can start investing in stocks, gold, Bitcoin, and other altcoins with USD. Once bought, transfer them to:

  • hot wallets (including mobile app wallets and software crypto wallets) or
  • cold wallets (including most secure hardware wallets)

 

Hold them for a longer time period to let the Bitcoin BTC price increase. Keep your cryptocurrencies safe with:

  • Ledger Nano S
  • Trezor One
  • Other Ledger and Trezor models

 

Crypto market investing will provide you a higher return in the long run. The ROI from crypto investment is much more than investing in:

  • Stocks
  • Mutual funds
  • Index funds
  • Real estates
  • Yield savings accounts
  • Real estate investment trusts
  • Fiat currency trading (forex trading)
  • CD rates
  • Trade Options
  • Money saving in savings accounts
  • money market returns
  • Exchange traded funds
  • IRA accounts (including Bitcoin IRA), and others.

 

In fact, many retirement funds or IRA accounts such as Roth IRAs are allowing digital currency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets. These retirement funds are increasing investor choice by allowing them to invest a small percentage of their money in cryptocurrencies. This is, in turn, increasing the prospects of these funds to provide their investors to get higher returns. If you are thinking about building wealth, you should include cryptos in your portfolio like other crypto investors.

 

Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. Start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in crypto market and make better financial decisions. Learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly.

 

As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and other crypto APIs. There are many brokers suitable for beginners as well. So, read reviews of customers before joining a crypto exchange. There are many brokers for beginners in the USA through which you can trade and invest extra cash and investible fund in fractional shares and stocks funds.

 

You should definitely learn about:

  • Trading for beginners (Step By Step guide)
  • Types of stocks including penny stocks, value stocks, growth stocks, blue-chip stocks, etc.
  • Gold standard
  • Futures contract
  • Gold miner, gold mining company, and gold mining stocks
  • Bad debt and bad credit
  • Home equity
  • Employment tax records and receipts
  • Periods of limitations
  • How credit score is determined?
  • World gold council
  • How is the price of gold and other precious metals determined?
  • How to rent out your car to make money
  • Significance of owning gold
  • Stock plans
  • Fixed income assets
  • Stocks and Funds
  • Spot price and futures price of gold
  • Write an eBook to start making money
  • Use spare time and personal internet connection to earn extra cash through part-time graphic design
  • Asset allocation
  • Investment gold
  • Different ways of buying and selling golds
  • How to make money from Google adsense?
  • Gold stocks
  • Utilizing market news for profit
  • Significance of Dow Jones in the stock market
  • How to increase your disposable income through balance transfers credit cards?
  • Different trade ideas
  • Warren Buffet’s investing styles
  • Passive investors
  • Different investment goals
  • Teaching as a private tutor in your free time
  • Cash Management
  • Investing for beginners
  • How to choose brokerage firms and stock exchanges?
  • Gold markets
  • Trading strategies for beginners to time your entry and exit
  • Using price actions to one’s advantages
  • Teach english to earn lot of money online and start saving
  • Browsing websites can also help you earn little extra cash
  • Margin Requirement
  • Margin Call
  • Margin Account
  • Day Trading Margin
  • Trend Trading
  • Market Maker
  • Options trades
  • Fundamental Analysis
  • Short Sell
  • Market Research
  • Success Rates Of Day Trades
  • Trading Vs Investing
  • Swing Trading
  • Time Frames Of Trading
  • Successful Ways Of Buying Stocks And Cryptos Throughout The Day
  • Risk Management
  • Financial Industry Regulatory Authority
  • Trade On Margin,
  • Foreign Exchange Trade
  • Pattern Day Traders
  • Day trading rules
  • Active trading
  • Secrets of a successful day trader
  • Stock price actions
  • How to pay off debt quickly
  • Planning for retirement
  • IRA guide and fruitful ways of increasing returns of individual retirement accounts
  • Stock price determinants
  • Charles Schwab’s modern approach to investing and retirement
  • Day Trading Tools, trading software, and different financial tools.

 

Defi tokens and NFTs (Non Fungible Tokens) are the next generations of crypto coins. These decentralized coins have started to become very popular among active traders who trade cryptocurrency. You can buy sell them through crypto trading platforms too.

 

Whether you buy Ethereum ETH or buy Dogecoin, you should also invest in:

  • Chainlink LINK
  • Litecoin LTC
  • Binance Coin
  • Cardano ADA
  • Polkadot DOT
  • Dogecoin DOGE, and
  • Trade Litecoin LTC for better diversification of coins

 

To diversify your portfolio, you may also buy stocks through stock brokers for beginners and pro.

 

Get better guidance on improving your personal finance, retirement planning, management of cash flows or capital gains, and investment ideas from financial advisors, investment managers, and wealth managers, especially the ones who are not averse to cryptocurrencies such as Bitcoin and others.

 

While day trading, you should always try to invest only that much money which you can afford to lose. When you do margin trading, be very careful. Financial protection must be there in your mind always while you make cryptocurrency trades. That’s why having a secure financial plan is so important.

 

Invest money in stocks, gold, and other cryptocurrencies through centralized or decentralized exchanges and reliable online brokers.

Choose NapBots to Increase ROI

 

Trading Robots (such as NapBots.com) automatically scans the market in real-time and trades for you. They run 24/7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

 

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement.

 

NapBots.com is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.

 

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.

 

What’s so special about NapBots?

 

NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you
  2. A unique crypto trading bot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24x7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money

 

How to Get Started with NapBots?

 

NapBots is easy to start with. It involves just 3 steps:

 

Step #1: Connect to one of the available trust exchanges.

Step #2: Select from the unique list of performing Bots of NapBots

Step #3: Choose a plan that suits your investment style

 

Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!

 

Why Choose NapBots?

 

  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.

 

  • The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.

 

  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.