How to get started in Cryptocurrency investing/trading
How to get started in Cryptocurrency investing/trading We often get approached on how to get ones feet wet in investing in cryptocurrencies. here is a brief post of how one can start: be aware of the risk: the most important part as a trader/investor is risk control as such it is prudent to follow a few logical steps with this high risk group of investments why is it a high risk group? here are the increased risk factors of these trade able instruments: 1.Unregulated market (not FDIC insured-high risk-potential high loss on total investment) solution: just as much as this provides risk this is also a huge potential for profits it is known that timing is an important factor with investments-so if this would be regulated already a huge profit margin would be gone you are here first and as such you might be handsomely rewarded for daring to be here early 2. New terminology/technology requiring steep learning curve (different rules ,different countries with possibly high exchange/access fees) solution: get excited-there is much to learn and explore and these new technologies are here to stay 3. High volatility (50% retracements are a norm) solution: volatility traded the right way can be very nice within rewarding one in much shorter time periods than heavy long established markets buy the dips and sell the rallies 4. Illiquid markets (unusual slippage to be expected) solution: accept wider stops and resulting smaller position size step up in the time frame so the proportion of slippage and fees will have less effect on the profit potential and risk /reward ratios 5. This new market is not short able yet (requiring specific entry and exit methods) solution: this also fuels for more upward potential since short squeezes make for larger legs versus stops = better risk/reward ratios proper "quad exit strategies" can compensate both psychologically and for profitability 6. Over 90% trade able objects are potentially hype even fraud solution: don't just trade from a Technical Analysis perspective but research the fundamentals- only pick trading vehicles in this high risk group that have a story , value and show some traded volume 7. Possible high high exchange fees solution: pick your exchange accordingly and trade longer time frames to compensate for operational costs reduce trade frequency A good way to start is sorting through the various pairs on https://coinmarketcap.com/ engage in the higher liquidity pairs first as a beginner We recommend there to be at least 500k volume in a 24h period In Coinigy we have found one of the better charting available as of now https://www.coinigy.com/?r=b172feef Consider using an alert app on your phone to be informed in a timely manner when you are away from your computer The exchange Coinbase https://www.coinbase.com and Zeroblock https://zeroblock.com/ provide such services Use an exchange for purchasing your cryptocurrency that provides reasonable fees We find Coinbase https://www.coinbase.com and Poloniex https://poloniex.com/ to be among the preferable ones but this might vary depending on your country of residence. You might feel more comfortable to own a hard storage for your cryptocurrency if you doubt your exchange TEZOR https://trezor.io/ and Ledger https://www.ledgerwallet.com/ offer solutions there. and again read/read/read -we live in exciting times and learning about these new technologies and their applications wont be a waste of your time. We will post more in depth about all the variants of principle trading/ investing to provide more clarity and support and wish you an exciting and prosper journey All being said this should not turn one away to engage into these high risk markets. With proper money management (including conservative size within overall portfolio in the risk bucket) and risk control the returns literally can be epic on the few winners one picks out and compensate generously for the to be expected few loosing trades. As traders/investors we play the odds and where there is volatility there is also opportunity.
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