How to become a professional crypto trader?
The first thing we will start with is an explanation of who is a “professional cryptocurrency trader” and what is “trading”:
In simple words, trading means exchange — buy or sell — operations between two market participants, where trading assets change hands.
Cryptocurrency trading is an exchange transaction between crypto-to-crypto or cryptocurrencies-to-fiat money. Put simple, buying cryptocurrency like Bitcoin for US dollars is an exchange operation – means you exchange your cash for crypto.
Being a trader is more than just a hobby, it is a real passion or profession, which requires a lot of time and no less technical knowledge – only in this case, trading will start to bring regular profit.
Cryptocurrency trader is a user of a cryptocurrency platform or exchange acting on its own initiative, by trading digital assets (cryptocurrencies and fiat money) in order to profit from the trading process itself (buying and selling funds).
The purpose of trading is to receive money for efficiently performed operations (closed with profit).
Cryptocurrency trading is becoming more and more popular. Every year more and more people would like to try themselves as traders. There are lots of myths around this profession, and most believe that in order to become a trader you need higher economic education or have an over-developed intuition, over-reason, be an analyst from God, etc.
Yes, all this would be a considerable bonus, but by no means a prerequisite. And today we will prove it!
Can I consider myself as a trader after several successful trades?
The well-known rule of the “beginner’s luck” applies here as well. You can profit once or even several times from opening trading positions at random, but, unfortunately, it works differently. For successful and effective cryptocurrency trading, you need to understand several aspects:
- Current market situation.
- How trading instruments work (what types of orders are available, etc.);
- Understand how to read charts. For example, you need to know how to check ethereum price in pounds, if you are interested in trading this currency pair.
- And, most importantly, analyze trading patterns and movements on the chart to build the right trading strategy.
A trader’s professionalism lies in his experience in the market, how he reacts in stressful situations, how much he thinks out his trading steps, and “fallback options”.
Regardless of the trading strategy pursued, the main trading goal remains unchanged. Namely, “Buy cheaper – sell more expensive” – the only reason for any trading operation is to make a profit.
What knowledge do I need to improve my trading skills?
Market analysis is the foundation of a successful trading strategy and therefore making a profit. Not a single trading strategy, even Buy&HODL, is efficient without the fact of understanding how market movements work and the main trading candlestick patterns.
DON’T BE SCARED: You don’t have to be a professional to start trading! With the right and thoughtful steps, even a beginner can make money on buying/selling cryptocurrencies. Experience defines a professional, and experience is what you need to earn. Therefore, go through this path of becoming from an ugly duckling to a swan! In our case, from beginner to professional;).
For the very start, it is important to understand the types of orders provided on the platform used and what “pictures on the chart” mean, how to place orders and what instruments are available on the platform. For the first time, this will be more than enough!
We can draw an analogy with electricity – in order to turn on a TV, air conditioner, or night lamp – you do not necessarily need to know how they work under the hood, it’s enough to learn how to operate them. The same logic applies here!
Is there an easy win trading method to make money on cryptocurrencies?
Slight a tricky question because the answer is both “yes” and “no” at the same time.
The fact is that the cryptocurrency market is very volatile, therefore, it literally always provides an opportunity to make money for those who follow the market “at the current moment of time” and know how to use trading tools correctly.
“Buy cheaper – sell more expensive”, that’s the motto of any trading strategy.
The Buy&HODL strategy can be considered winning at certain conditions. Its essence is to buy an asset and wait till it grows. The main thing is not to miss the moment and sell on time. Hence, when buying a certain trading asset with the aim to hold it, you need to make a prior analysis and get some signs that the price of the asset in question will likely surge. Otherwise, there is a risk of losses.
How to choose a platform for crypto trading if I am a beginner?
Check the platform’s public sentiment and reputation. Security is extremely important! The platform must comply with the highest security standards to ensure the protection of your personal data and funds. Find the list of the supported countries: not all services cover the access of users around the world, check if residents of your country can be the platform’s users.
It is also important to have customer support around the clock. You need to make sure you can get help from the customer service at any time you need it.
Advantages of the cryptocurrency market:
Market volatility – no financial market can compare to the fluctuations in cryptocurrency rates. Today, it is the most flexible way to make money on trading, the price of some assets can make x100 literally in a day. Though note, they can also drop as rapidly as they grow.
Cryptocurrency availability – digital currencies are available at any time. The cryptocurrency market operates 24/7 and you can trade, deposit or your crypto assets when you want.
Anonymity – even if the transaction can be tracked – you’ll see the wallet address, not the ID data of the owner.
Reliability – cryptocurrencies are safe. BUT! Only if you use a proven and secure service.
Limited emission is good for cryptocurrency tokens – the fewer coins were issued, the more demand for them.
Cryptocurrency is a decentralized currency – there is no single entity or middle man that controls the transactions.
Low transaction fees -the commission for transferring funds is much lower compared to the bank transfers, for example.
Why waiting? Go, choose the platform, create an account, and start trading. Just don’t forget one rule — always do your own research first!
