Similar to how forex works, people are making a lot of money from cryptocurrencies by taking part in crypto trading on Crypto Exchanges. As the Crypto market is generally volatile, it creates a lot of leverage for seasonal exchange experts and even newcomers on the market willing to learn. It has led to a great deal of profitability.
Unfortunately, the market swings both ways, so it’s crucial that people are aware of the state of the market at all times to ensure that they stay profitable and avoid chasing losses. Beginners are recommended to play it safe in the beginning, following the guidelines of the platform they’re on while doing their due research to minimize loss and amplify gains.
There's a sea of cryptocurrency exchanges out there, with each having their own pros and cons. But for those new to the world of cryptocurrency and trading, Binance is easily the best option and recommended for newcomers:
The ability to convert your liquid assets into cash is known as liquidity. When it comes to market and asset liquidity, Binance is a great option.
The user interface on Binance is optimal for newcomers. They can easily navigate, understand and memorize the website and get comfortable, despite being new to a crypto exchange.
Low Transaction Fees:
Secure Platform and Support Team:
Binance emphasizes on security, providing assurance to its users that their money is safe and sound on the platform. In case you run into any problem, the Binance team is readily available at all times to cater to queries and concerns that the users present to them.
What separates Binance from others is its strong community. The users are striving to increase the widespread adoption of Bitcoin and Cryptocurrency, educating the people about what it has to offer. It increases the overall trading volume and liquidity.
Typically, cryptocurrency exchanges are platforms where buyers and sellers can come into contact and deal accordingly. You'll find all kinds of users, including traders as well as investors using the platform for profitable opportunities.
Traders intend to make their profits in short swings and benefit from the volatility of the market, while investors play the waiting game for long term investments.
Here’s Why You Should Be Trading Cryptocurrencies
24/7 Market: The Crypto Market is exceptional as it does not hit a full stop any time. It’s active all day, every day, which does increase the competition but opens new horizons towards great opportunities.
Liquidity: Most people are commonly concerned with getting cash for their cryptocurrency, and this is where Bitcoin becomes extremely desirable. The demand for crypto is high, which in turn increases the overall liquidity of the market on various crypto exchanges.
Like most trades, you do need the ability to make projections, which will help you make the right decisions such as when to enter and exit the market. Regardless of the platform that you’re trading on, the basic knowledge of making Fundamental and Technical Analysis is crucial.
Fundamental analysis focuses on the various technical aspects that affect the values of cryptocurrencies, including various changes in legalities, different news regarding regulation and adoption across different parts of the world. As acceptance and positivity regarding the cryptocurrency spectrum increases, the more people will be eager to purchase and avail cryptocurrencies.
This side study price chart patterns, trading volume, and statistics, since price movement speaks for themselves and tells you a story of what will happen.
There are candlestick patterns and technical indicators you can use to determine price action. You need to get yourself familiar with them.
One thing to bear in mind is that you can never have a 100% market prediction accurately because the market can change direction at any time. You should never bet on any market regardless of how good the analysis may be.
However, it’s very important that as a beginner trader you acquire proper education of Trading Analysis to determine Price Action before trading the market.
COMMON MISTAKES TO AVOID AS A BEGINNER TRADER
Risking More Than you can Afford to Lose
Only risk an amount of money you can afford to lose in order to enable you to have a sound mental disposition to make good decisions while trading. A lot of newbies run into frustration after losing so much money from the market.
Trading Pump and Dump Markets
These markets are highly manipulated. Most people who trade on this kind of market are just seeking for quick profits so they sell off quickly and if you’re not fast with the trend, you’ll be badly wounded on this market.
Wanting to make all the Profits before exiting the market
Don’t be greedy! If you have made profit from a trade, you don’t need to wait to make all the profits before exiting, sell off the trade, except if you're holding for a long period of time.
Trading Without Using Proper Stop loss
Chances are that a trade may not go as expected but reverses, without a proper stop loss you stand the risk of losing your capital on that trade if the market dumps massively. The bottom line is that always use proper stop loss to safeguard your trade from bigger losses.
Not Setting Clear Trading Plan
A clear trading plan should guide you on how to diversify your trading portfolio, your risk to reward ratio and your do’s and don’t. Strict adherence should be giving to them if you want to trade successfully.
FOMO and FUD
The Fear of Missing out (FOMO) and Fear of Uncertainty and Doubt
(FUD) is undoubtedly the two emotional setbacks the beginner trader is likely to face.
As a beginner trader, you can easily be carried away by the feeling of “missing out” to buy the peak of a market. The danger of this is that you might end up catching a falling knife.
On the other hand, the fear of uncertainty and doubt will constrain you from taking action. You’ll only make profit when you are able to cautiously risk your money in the market.
Not Investing in your Education
To trade successfully on any financial market, you need some level of education which requires your investment in personal research or tutoring.
Joining a Crypto Community gives you an opportunity to learn more about crypto trading, Blockchain technology and a lot more.
Most beginner traders who skip this step end up learning it the hard way in the market.
One way to make money from cryptocurrency is trading cryptocurrencies on a Crypto Exchange like Binance.
The Crypto market is highly volatile and it makes it possible for traders to leverage on the price swing to make profit off the market.
At the same time, you can lose a lot of money if you don’t know how to take advantage of the market volatility. In other words, understanding Market volatility is very important if you want to make profit trading on any crypto market.
Our ‘Make Money with Cryptocurrency Starters Guide' will give you a head start on perfecting your Bitcoin trade!