Day Trading Crypto: Top 3 Things to Know Before Starting
If you’re new in the crypto area, we congratulate you for looking for tips before starting to trade crypto for the first time. You’re off to a good start.
We gathered here three of the most important things to look into, so let’s dig in!
1. Choose your trading platform wisely
There are three main things you need to take into consideration here:
- Authenticity;
- Popularity;
- Usefulness.
Regarding authenticity, the reason is self-explanatory. You don’t want to be a victim of scams. And there are a lot of them. Frankly, it’s not hard to figure out what platforms are fake.
Besides odd URLs and unrealistic promisings, you need to check if you can find any information about the development company. And if you find info, are they existent on other platforms as well?
The best practice that trustworthy crypto trading platforms do is showing the team. Names, positions, maybe a link to their LinkedIn profiles.
Popularity is another thing to consider because you get to sell your assets depending on the demand. If the platform barely has users, who will buy your assets?
The last check is the platform’s usefulness. The basic utility is found on every crypto trading platform - the possibility to buy and sell assets by taking advantage of changes in the market. But what separates basic from the best is the instruments that come along with it.
Charts, analysis tools, price alerts, and so on. Some platforms even exceed expectations by adding their own wallet or staking process, like Haru. This means you can also earn passive income just by depositing your assets.
Make sure to choose something that helps you look at your trading style and optimize it where needed.
2. Do your research on cryptocurrencies (DYOR)
Now that you chose your trading platform, it’s time to decide what cryptocurrencies are best for investing.
That means you need to look at how their value changed over the past months and see how fragile it is on market changes. Set your expectations regarding profits, and choose wisely.
PRO Tip: If you want to have the best outcomes, make sure you diversify your crypto portfolio. The value of coins and tokens changes by the day, and what is on a roll today might fall tomorrow.
Therefore, by having various types of cryptocurrencies, you can easily survive in a bear market and get the best out of the bull market.
3. Invest just what you are willing to lose
That applies to the forex market in general. But since we are speaking about cryptocurrencies, the chances to fail are bigger than trading with fiat.
However, the value of your success through crypto trading is massively greater than fiat trading. Just look at Ethereum. If you had bought 1 ETH on 6 June 2021 and sold it one day later, on 7 June 2021, your profit would have been $200. In just one day.
So keep your eyes on demand.
Ready to trade?
Gear up with the best trading instruments, choose your favorite cryptocurrencies, and let the numbers go up in your wallet!
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