For those who are new to trading Bitcoin and other various cryptocurrencies, starting off can be quite difficult due to the complications of understanding markets and general trading. Hopefully with the advices presented below you will get a rough idea of how to get started and start earning some Bitcoins!
1. Make your own decisions.
I figured the most important bit of advice should come first. Following the choices of others is a very bad idea. Many traders will use social media as a way to manipulate markets by spreading bad investment advice in order to lower the prices. I strongly recommend you make your own decisions on when to invest and when to sell.
2. Do your research.
There are a huge number of different sites dedicated to monitoring the price of Bitcoin with features such as order depths, candlestick charts and much more. These sites are extremely helpful when it comes to reading trend lines and general market analysis.
3. Do not go all in.
Only invest money that you are fine with potentially losing. Over the years, many traders have made the big mistake of investing everything they have and losing it. There have been people that have even sold their houses for Bitcoin. While some have invested lots of money into Bitcoin at the right time, it does not mean you will end up with the same fortune. Start with small amounts of money and once you get the hang of trading you can increase the amount.
4. Start with Altcoins.
Altcoins are alternative cryptocurrencies that tend to be significantly cheaper than Bitcoin. Due to the general stable and high price of Bitcoin, any real profits aren’t going to be that noticeable unless you invest heavily. However, with certain Altcoins, investing could lead to a much higher profit.
5. Take advantage of the Internet.
If you have no idea how trading works then there are many useful videos on YouTube/ tutorials on the Internet that can teach you to understand the essentials in order to get started. Due to the similarities between cryptocurrency trading and stock trading, it shouldn’t be hard at all to find a tutorial that can explain candlestick charts and order depths.
By Antony Mattews for CEX.IO