Crypto Exchange Selection
To start trading you need to choose the exchange. If in the past the preference was given to large international exchanges, now, in times of sanctions and financial restrictions, it is worth looking at the sites that have the jurisdiction of neutral countries.
For example, take the cryptocurrency exchange BANKOFF. The company operates under the legislation of the Russian Federation and the United Arab Emirates. It does not face sanctions restrictions. The site has a pleasant interface, 4 languages are available, more than 300 issuers are available for spot trading.
The registration process is not difficult to enter email, come up with a password, confirm email. For security and the ability to withdraw funds you need to verify. It is also recommended to connect two-factor authentication from Google.
The next step is to replenish the balance. The process is carried out either through replenishment in a convenient currency, or by transferring the already existing cryptocurrency to the appropriate wallet on the exchange.
There are different approaches to trade: trading, scalping, deitrading, etc. The alternative to speculation is long-term investment. All these methods are discussed in more detail in other articles, and in this we note that the purpose of trading is profit, i.e. buying an asset should be cheaper than selling.
Before trading it is important to build a strategy and the desired profit percentage. It is believed that if your profit percentage is higher than the profitability of the broad market, you can consider trading successful. When you reach the target profit, you need to sell the asset.
The difference between investment and speculation is that in trading you make a lot of deals in a short period of time to earn with each transaction. And on long-term investment, you buy an asset once, and after a substantial period of time, you sell an asset that has risen in value. The investment period is not limited, can be from a year and above. Your chosen trading strategy should include how to proceed if the profit has reached the target yield prematurely: sell ahead of time or keep on.
Futures and options in the crypto market
There are derivative cryptocurrency trading tools such as futures, options, etc. They often involve margin trading and low-stakes play. In addition to the opportunity to increase income, these tools can, if the circumstances fail, reset the deposit. Therefore, for a beginner trader, trading with a growth of the asset, without using a leverage, is the safest, but not the safest way to earn.
Choosing a Cryptocurrency to Trade
When choosing a trading ticker, it is recommended to consider the most liquid and well-known projects that have long existed and have proven themselves. Or you need to look for promising startups of developers who have already had experience of successful projects.
The choice of time also plays a role, it is better to go into position in times of big falls in the bear trend, when the price of the coin has already lost 50% or more. Buy better in small parts with a periodicity of 1 time per week or month.
When compiling a portfolio of cryptocurrencies you need to adhere to diversification of issuers, sites and wallets. Remember, when the whole market falls, the media writes about the end of the world in trade, this is the best time to buy. And when the market is euphoric, people believe in perpetual price increases and buy at historical highs, this is the best time to sell the grown coins.
Trading on the stock exchange is a very difficult way of earning. According to statistics, 95% of beginners lose money in trading. Remember that markets are cyclical, growth periods are always followed by periods of decline. But if you stick to your trading strategy, your profits will grow over time.