Top 3 Cryptocurrency Trading Tips For Beginners To Dramatically Reduce The Learning Curve & Fast-Track Profits That’ll Have You Wondering Why You Didn’t Start Trading Crypto Sooner
Cryptocurrency trading is a hot topic right now, and a lot of beginners want to get started trading Crypto. However, it isn’t always easy to get started and there are some issues that every beginner Cryptocurrency trader needs to prepare for.
To make the transition from complete beginner to profitable Crypto trader as smooth as possible, I want to share with you my top Cryptocurrency trading tips for beginners.
Top 3 Cryptocurrency Trading Tips For Beginners:
- Don’t Be A Cryptocurrency Speculator And Avoid “Pump & Dump”
- Trade Cryptocurrency At A Forex Broker Like Any Other Currency Pair
- Don’t Try To Learn Cryptocurrency Trading On Your Own
Most Cryptocurrency trading tips you come across are simply “trading” tips and don’t have much to do about Cryptocurrency at all. But, in my opinion, the tips I’m about to share with you are very specific to Cryptocurrency trading. They can help you avoid mistakes, shorten the learning curve and put you on the fast-track to profits.
Let’s get started…
What Do I Mean By “Cryptocurrency Trading”
When you look for information on “Cryptocurrency trading” you get a lot of different responses. That is because the topic of trading can be confusing and it is easy to lump a lot of different types of activities together.
So, let’s make sure we are all on the same page by making a distinction between 3 different activities with the goal of profiting from the Cryptocurrency market.
Cryptocurrency speculators are people who want to find the “next big thing” in Cryptocurrency coins, get in on the ground level when the coins are very cheap and make millions very fast when the price dramatically increases.
This is comparable to people looking to buy stocks in a new company very cheap and then cash in when the company becomes famous. And yes, this situation would be excellent… but the occurrence is the exception, not the rule.
Cryptocurrency investors basically buy and hold a Cryptocurrency thinking that the price will increase over time. Investors are usually thinking in the long term and focus on coins with a strong purpose and mission.
There are many ways to invest in Cryptocurrency, like the Dollar Cost Averaging method where you buy a certain coin, regardless of its price, on a regular schedule and hold the coins for the long term.
Regardless of how you invest in Crypto, you are actually taking ownership of the coin and storing it…. Sometimes for extremely long periods of time.
Cryptocurrency Traders speculate on price movement where you “buy” if you think the cryptocurrency will rise in value or “sell” if you think the price will fall. Trading is more of a short term endeavor where you try to find the best entries to buy or sell one currency in comparison to another.
Cryptocurrency traders use strategies to find the best entries, place stop losses to limit risk, use take profits to manage risk to reward ratios and manage the trades as they progress by moving the stop loss to eliminate risk on the trade or lock in profits.
It is important to note that Crypto trading does not obligate you to take ownership of the asset, where Crypto Investing does. This is very interesting because you can profit from the Cryptocurrency Market without actually having to buy any Cryptocurrency at all.
So, now that we are all clear on what we are talking about, let’s get to the Cryptocurrency trading tips for beginners:
Cryptocurrency Trading Tip 1:
Don’t Be A Cryptocurrency Speculator
And Avoid “Pump & Dump”
We’ve all heard the stories of someone who bought a Cryptocurrency when it was extremely cheap and became an almost overnight millionaire (or billionaire), when the price increased.
Yes, that would be fantastic, I have to admit. But this scenario is not as easy or frequent as it sounds.
The problem with this method is unscrupulous actors take advantage of buyers by engaging in “pump and dump” schemes. Basically, they advertise a coin very aggressively and create a bunch of hype. People get interested and buy, making the price increase. Then they dump their large holdings of the coin, cash in and the price dramatically drops.
People that got in late are usually left holding the bag. And since the coin was never designed to be a long term success in the first place… their holdings of the coin are practically worthless.
So, the first Cryptocurrency trading tip for beginners is to avoid trying to pick “the next big thing”. Since you are a beginner, you don’t have enough knowledge and experience to know the difference between a TRUE “next big thing” and a scam.
Cryptocurrency Trading Tip 2:
Trade Cryptocurrency At A Forex Broker
Like Any Other Currency Pair
When most people talk about Cryptocurrency trading they immediately talk about trading Crypto at Cryptocurrency Exchanges. Exchanges are where you can buy and sell Cryptocurrency and “trade” or EXCHANGE one coin for another.
But I have a couple problems thinking of this as Cryptocurrency “trading”.
First of all, you need to actually purchase and take ownership of the underlying coin if you want to trade coins at an Exchange. For example, to trade Bitcoin at a Cryptocurrency Exchange, you actually have to buy some Bitcoin.
For this reason, I prefer to trade Cryptocurrency at Forex brokers in the same way I would trade any other currency pair. This allows me to participate in, and profit from, Cryptocurrency trading without having to buy and take ownership of the actual Cryptocurrency coins.
Secondly, most Exchanges only allow you to trade on crypto for another crypto. This makes it very hard to make trading decisions because you are dealing with the value of new currencies in relation to another. This is much harder to wrap your head around compared to trading a crypto against a fiat currency like the US dollar.
An added benefit of trading Crypto at a Forex broker is the ability to use the popular and free Metatrader4 trading platform. Since this trading platform has been around for a long time, it is easier to find information on how to use the platform and many indicators, expert advisors and trading strategies are available to help traders understand when to buy and sell.
Therefore, the second Cryptocurrency trading tip for beginners is to trade Crypto currency pairs like the BTCUSD and ETHUSD at a Forex broker using the Metatrader4 trading platform and proven strategies.
Cryptocurrency Trading Tip 3:
Don’t Try To Learn
Cryptocurrency Trading On Your Own
When I first looked for Cryptocurrency trading for beginners, I found an article on Binance, one of the top Cryptocurrency Exchanges out there: A Complete Guide To Cryptocurrency Trading For Beginners.
Here is what it goes over for beginners:
- What is trading?
- What is investing?
- Trading vs. investing – what’s the difference?
- What is fundamental analysis (FA)?
- What is technical analysis (TA)?
- Fundamental analysis vs. technical analysis – which is better?
- What drives the financial markets?
- What is a market trend?
- What is a market cycle?
- What is a financial instrument?
- What is the spot market?
- What is margin trading?
- What is the derivatives market?
- What are forward and futures contracts?
- What are perpetual futures contracts?
- What are options contracts?
- What is the foreign exchange (Forex) market?
- What are leveraged tokens?
- What is a trading strategy?
- What is portfolio management?
- What is risk management?
- What is day trading?
- What is swing trading?
- What is position trading?
- What is scalping?
- What is asset allocation and diversification?
- What is the Dow Theory?
- What is the Elliott Wave Theory?
- What is the Wyckoff Method?
- What is buy and hold?
- What is index investing?
- What is paper trading?
- What is a long position?
- What is shorting?
- What is the order book?
- What is the order book depth?
- What is a market order?
- What is slippage in trading?
- What is a limit order?
- What is a stop-loss order?
- What are makers and takers?
- What is the bid-ask spread?
- What is a candlestick chart?
- What is a candlestick chart pattern?
- What is a trend line?
- What are support and resistance?
- What is a technical analysis indicator?
- Leading vs. lagging indicators
- What is a momentum indicator?
- What is the trading volume?
- What is the Relative Strength Index (RSI)?
- What is a Moving Average (MA)?
- What is the Moving Average Convergence Divergence (MACD)?
- What is the Fibonacci Retracement tool?
- What is the Stochastic RSI (StochRSI)?
- What are Bollinger Bands (BB)?
- What is the Volume-Weighted Average Price (VWAP)?
- What is the Parabolic SAR?
- What is the Ichimoku Cloud?
- How do I start trading cryptocurrency?
- How to trade cryptocurrency on Binance
- What is a trading journal, and should I use one?
- How should I calculate my position size in trading?
- What online trading software should I use?
- Should I join a paid group for trading?
- What is a pump and dump (P&D)?
- Should I sign up for cryptocurrency airdrops?
Whoa… wait a minute. This is what a beginner needs to learn in order to start trading Cryptocurrency? That sounds like A LOT.
Look, don’t get me wrong, if you are trying to do everything on your own, you are in for a long ride. It seems the more you learn about Crypto trading… the more there is to learn about Crypto trading.
But it doesn’t have to be this way.
And this is the biggest Cryptocurrency trading tip for beginners:
If you want to dramatically reduce the learning curve and start participating in the Cryptocurrency market for high potential profits… don’t try to do it on your own.
By following Crypto signals from an already successful Crypto trader, you dramatically reduce the learning curve and fast-track your profit potential.
Just think about it…
Instead of learning everything there is to learn about trading, the Crypto Market and creating a trading strategy that puts the odds in your favor… just learn how to place trades on the free Metatrader4 platform.
Leave the actual trading decisions of when to buy and sell, where to put your stop loss and take profit, when to move your stop loss to eliminate risk or lock in profit to a trader who is already trading Cryptocurrency profitably.
Final Thoughts: How These Cryptocurrency Trading Tips For Beginners Outlines The Fastest Path To Cryptocurrency Trading Success
It took me a long time to figure out how to trade Forex profitably. And I was very happy to learn that what I did in the Forex market was relevant for the Cryptocurrency market.
Basically, I could take everything I learned and apply the trading approach, indicators and strategies to the Cryptocurrency pairs like the BTCUSD (Bitcoin vs US dollar) and ETHUSD (Ethereum vs US dollar). And this quickly became the wealth accumulation activity I do with the highest profit potential.
The Cryptocurrency trading tips for beginners I’ve outlined here can dramatically reduce the learning curve and put you on the path to profits in the shortest time possible.
- Don’t try to pick “the next big thing” in Cryptocurrency.
- Trade Crypto at a Forex broker using a proven strategy.
- And follow an already successful Crypto Trader to reduce the learning curve and start participating in the high profit potential Crypto Market as soon as possible.
Good luck on your journey toward Cryptocurrency trading profits.
To Your Wealth,