Many people nowadays want to try cryptocurrency trading. They create accounts on different exchanges, invest money, start trading. However, as statistics shows, only 10 percent of traders are successful. This is the main reason why we have decided to create our free online course on how to start cryptocurrency trading.
The main reasons why the majority of newcomers lose all their money or a part of their investments buying or selling cryptos are the following:
Lack of basic knowledge about the structure and principles of financial market activity. The majority of beginner traders have little knowledge on how exchanges work and why the price changes.
Wrong choice of cryptocurrency exchange. Those websites vary as they offer different trading conditions, types of orders, trading platforms, security level, quality of the support etc.
Lack of understanding how to forecast price fluctuations. Most beginners don’t know how to predict price fluctuations and they place orders randomly, sometimes in the end of big tendencies.
Absence of basic money and risk management rules. Newcomer traders often try to place orders, using all their means. They do not place stop losses and have no profit targets (which results in the absence of understanding where to fix positions).
Lack of discipline. Beginners often take right decisions, but they are not disciplined to follow their trading systems.
Absence of a strategy and trading plan. Professional traders always have a strategy, which helps them to find entry points. They have also a trading plan comprising their risks policy etc.
Influence of different types of emotions. Novice investors are often affected by fears and greed. Those negative emotions lead them to defeat.
Lack of money. This is also one of the reasons, why many beginners lose their investments. They put a small amount on their trading account, trying to increase it in a fast manner. However, they end up losing all their means as they have to break too many rules, including money and risk management to achieve their goals.
How to get started in cryptocurrency trading
All traders have two ways to start cryptocurrency trading. The first is to open an account in any crypto exchange, to put money and to begin placing orders, looking at the charts. This way is the easiest one, but in most cases, it is a dead end scenario. Why?
Those investors have almost no chances to win as they have no skills, neither experience. There are some lucky guys, who catch serious tendencies accidently. However, they can’t earn money constantly and lose all their profit in the next trades.
Investors, who think about how to get started in cryptocurrency trading, may choose another way – meaning to begin their markets’ journey with proper education. This way is better as an investor will be prepared for different market situations and will be able to react appropriately to them.
For this purpose, we have prepared a special trading course for beginners. It includes several important topics related to trading and investments in cryptocurrencies. Here is the brief plan of what you can find there.
Trading is not about winning a couple of times occasionally. It is a long-term journey with many obstacles along the way. The main task of every investor is to overcome them and to earn money. Sounds easy, doesn’t it?
However, as we have already mentioned above, only 10 percent of traders are successful as the others retreat at some point in their trading careers losing their investments. When you start you need some knowledge to understand the price fluctuations, the reasons why quotes go ups and downs, find entry points and protect your capitals.
In the beginning of their career some traders try to start with strategies as they want to reach their targets faster. However, this is a wrong way as strategies is a practical aspect already. Beginners need theory in order to understand how it works in general and what factors affect price fluctuations.
We start our free online cryptocurrency trading course with several articles on how to trade in general and what are the main factors, influencing the price of Bitcoin and Altcoins. The information in those articles may seem obvious and well-known. However, it is very important as here there are the basics of trading, how it works and the aspects that are worth your attention.
Trading financial markets and cryptocurrencies is like driving a car. You may know how to start the engine, to change gears or to steer. Nevertheless, if you don’t know traffic rules, you can’t drive safely. When you deal with financial markets, you have to know the main rules to better understand what’s happening around you.
Those who have already learned basic information about markets and cryptocurrency trading may take the next step. Market fluctuations look unpredictable at first glance as the price moves up and down. There are two main analysis methods helping investors to forecast the price – technical and fundamental.
The first one helps traders to predict price fluctuations via charts. There are several types of analysis tools that you may use in order to make market forecasts. They are the following:
Technical analysis is illustrative as you can see the price changes and all signals on the chart. This method is rather simple as it requires no special knowledge. The only thing traders need to learn is how this or that tool works.
Fundamental analysis is more complicated as it is not illustrative. In cryptocurrency trading, investors monitor the news and try to predict their influence on different coins.
Those are brief descriptions of those methods. In our complete cryptocurrency analysis methods guide, you will learn much more about those two forecasting techniques.
Trading tips and tricks
Most beginner traders are looking for some Holy Grail when they start their career. They think there is some unique strategy or system, that will give profit in any situation. This belief leads some traders to significant losses as they try many systems and fail finally.
There are some trading secrets, that may help all newcomers significantly. We have prepared several articles on this subject. We are not going to give you a Holy Grail of trading as it doesn’t exist. We will provide some useful advice that will help you in your everyday trading routine.
Money and risk management
There is a strong belief among beginners that a strategy giving 100 percent positive results can be found. However, professional traders know and understand that the outcome of every single position is random and can’t be predicted.
How do they make money, if they have not a 100 percent strategy to win? The secret here is proper money and risk management system. There are several ways to reduce risks in trading. We are going to provide you with some useful methods in our articles.
Money management may be compared to a family budget. Those who plan it monthly and yearly, make savings. Those who avoid to do it or fail to plan family budget properly, spend all their money and make debts.
The situation with trading is the same. An investor has to properly manage his or her money as it is his or her trading budget. If successful, he will increase his or her investments and will have an opportunity to reinvest them partially to increase his or her trading capacities. Otherwise, he risks to lose a part or all invested capitals.
As for the risk management, it goes hand by hand with money management. Remember the advice and rules that we suggest in our articles.
For some beginner traders, the psychology aspect sounds like chimera. They skip those long but interesting articles thinking that they have no useful information for them. However, the truth is that psychology plays the key role in trading.
What is happening when a trader places an order to buy or sell cryptocurrency? Several emotions affect his or her decision including fears, greed, excitement and the others. Those have ruined many trading accounts already as investors sometimes take illogical steps influenced by his or her inner “enemies.”
Why is it very important to read those articles about trading psychology? They will help you to find out your inner “enemies” and to fight them to decrease their influence on your trading routine.
How do emotions affect investors results? Briefly, they make trader to breach self-discipline and to deviate from his or her trading system. Let’s say an investor has bought Bitcoin for $9,000. He conducted an analysis previously and found out that the price may rise towards $9,500. He sets this level as his or her target and places order.
Later, the price reaches this level, but trader becomes greedy, thinking he can earn even more. Instead of closing the position at a previously established level, he does nothing, waiting for more profits. Here there are two possible scenarios – the price may develop its progress further upwards or decline from those levels. What is the best idea here? To follow previously established trading rules.
Trading psychology articles will teach traders how to control their emotions and not letting them out in the moments of placing and closing orders.
Articles on trading
Those who learn how to make money from cryptocurrency trading, may be interested in special articles, regarding trading plans, work on errors, trading systems etc. They are very important aspect especial for beginner traders as they need to follow their trading plan in every single position.
Professional cryptocurrency investors use different strategies to increase their chances to get profit. Those strategies are sets of rules to find entry points. They are very important as those systems allow traders to place orders wisely and not randomly as most beginners do.
Here you can explore trading strategies from the easiest to more complicated. Those are the samples of what you can do for your trading routine. All the systems are adopted for cryptocurrency trading.
It is a separate section with the most popular and commonly used trading terms. It is important to know them as those words can be found not only in our daily reviews and different articles including this cryptocurrency trading beginners guide but also on different forums.
How to choose a cryptocurrency exchange?
This is an article, giving readers some tips to make their cryptocurrency exchange choice easier and more effective. We are going to give you complete guides on the most popular trading websites as well.
As you may see, this crypto trading guide for beginners covers different aspects of trading. You will be provided with all necessary theoretical materials. Have a nice practical journey upon completion of this course and do not hesitate to ask questions.