How to Trade Cryptocurrency - For Beginners

Published Sep 28, 21
4 min read

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2. Hedging Hedging – where one of your investments cancels out some or all of the risk of losses with another – is a strategy used by some crypto traders who want to hold the coins but not be over-exposed to volatile movements. You can hedge cryptocurrencies using financial instruments such as contracts for difference or futures.

4. Trend trading is where crypto investors decide to buy or sell particular currencies based on whether their price is moving up or down. There are many more complex theories on how to identify a trend, or when it is going to change. But the basic theory is that these traders buy in a market that is going to rise and sell when it is going to fall.

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Whichever strategy you employ, it is important to be aware of the large number of cryptocurrency scams that exist on the internet and elsewhere. The Financial Conduct Authority, which regulates UK investments, recently warned on the high number of crypto scams and gave suggestions on how to avoid them. Cryptocurrency prices can fluctuate wildly Bitcoin, ether and dogecoin are some of the most famous cryptocurrencies.

As mentioned above, crypto is volatile and the price can fall fast. Other dangers include the potential for losing all of your money to a fraudster. Losing your password to the digital wallet where you hold your cryptocurrency – or the hard drive where you have stored your precious coins – is also a risk.

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Bottom Line While some might say that cryptocurrency trading is as much an art as a science, the next best thing to having someone to mentor you on the subtleties of trading is to find a good course. With that in mind, we chose Udemy’s Complete Cryptocurrency Investment Course due to its reputation, live examples, and downloadable resources.

We primarily looked at courses taught by true cryptocurrency trading experts and that had high reviews and enrollment numbers. We also made sure to choose courses that focused on the fundamentals of cryptocurrency only as it related to real trading techniques and strategies. Although cost wasn’t a big consideration, we stayed clear of independent courses that charged far more than either Udemy’s discount course prices or Linked, In Learning’s affordable monthly subscription for the simple reason that they didn’t provide any additional value for their money.

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Therefore, to trade Bitcoin and other cryptocurrencies, you need reliable and regulated crypto trading platforms, and we have detailed the best here below. 1. Bitcoin Profit Bitcoin Profit is one of the crypto trading platforms that takes advantage of high-tech such as Artificial Intelligence and Machine Learning. These advanced techs have appeared instrumental in market and chart analysis, which gives the trader an upper hand in securing reliable trading deals.

Bitcoin Profit has a robust algorithm that helps traders predict the trends in crypto prices. Thus the trader can track the market with much ease. Bitcoin Profit has great features, which include; Payout System Bitcoin Profit has a payout system that runs after the end of the live session. This means the winnings are calculated quickly to enable the trader to cash out or start another trade.

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Thus, carrying out extensive research into the industry is one of the best moves. Another factor to consider is identifying the reliable and regulated platform for your course. The right platform will offer the best investment tools to buy and sell different cryptocurrencies. After settling on the trading platform, you need to follow these easy steps.

If your prediction is correct If you were right, and the value of ether fell against the US dollar, your trade would profit. Let’s say that the new market price is 150, you could close your position and take your profit by buying 5 contacts to close your position at the buy price of 155, which is slightly higher than the market price due to the spread.

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If your prediction is incorrect However, if the value of ether rose against the US dollar, your position would be closed at a loss. Let’s say that you decide to exit the trade after the market rose by 15 points to 215 – so buy back 5 contracts at the buy price of 217.

From England, Manchester. Interested in cryptocurrency. Focused on trading, cryptocurrency and improving my gains.

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Also while returns on investment in cryptocurrencies are high, the market is highly volatile and transactions once initiated, cannot be reversed. Therefore before putting in your money in the crypto market, do go through the following tips:It is important to first select a trading platform or the right crypto exchange.