1.1 k views

7 Tips for Getting Started with Cryptocurrency Trading

Bitcoin is the oldest cryptocurrency and continues to be the most substantial coin, with a market capitalization of $325B. According of March 2022, there were over 40 million Bitcoin addresses with balances and a total of 85 million cryptocurrency addresses including all altcoins addresses.

Most of these wallets are used in cryptocurrency trading, among the drivers of crypto adoption. It is an exciting venture and can be pretty rewarding. However, prospective traders should note that it can still be daunting.

Research and Update Your Knowledge

In recent years there have been several articles on cryptocurrencies and the success of crypto trading. Everything may look all good and straightforward but don’t get it wrong. It is more likely to make a significant loss if you rush to stake your funds. 

Before you can even decide to trade in digital assets, make sure you understand the theory behind digital currencies or at least the basics. Try to get a complete overview of cryptocurrency, including common terminologies and trading terms

Furthermore, learning about the different cryptocurrencies, the leading ones, and each coin’s trends is essential. Finally, it would be beneficial to understand the technical aspects of cryptocurrencies. This will prove immensely helpful in the end as you get started.

Create a New Wallet

Cryptocurrencies are not tangible sources of money. They do not exist in a physical sense. Traders never actually see or hold the assets in their hands. Everything happens virtually, and you only need a digital wallet

Each wallet has keys that you will use to control the assets held in the wallet. Individuals use them to store and trade their holdings. There are different wallets, but generally, they can be classified as hot and cold wallets.

Hot wallets are usually found online, so you need an internet connection. They are the easiest to use, but the downside is that they are prone to hacking. On the other side, cold wallets do not require an internet connection. Instead, individuals can print the keys to their wallets or scan a QR code. 

These are offline wallets and are thus much safer since they are not susceptible to hacking. However, storing your cryptocurrency holdings in cold wallets would be much better than having just a tiny proportion in hot wallets.

Find a Reputable Exchange Platform

Once you have your wallet, how do you trade without any cryptocurrency holdings? Exchange platforms will help you obtain your first digital coins. There are many exchange platforms in the market, so you need to be careful when choosing one. 

For safety reasons, it is recommended to pay higher fees than scammer platforms with lower fees. In addition, some platforms have wallets that support different cryptocurrencies, so you may not even have to create your wallet first. 

Sign up and exchange your fiat currency for its crypto worth. Therefore, you should research the coins supported by the platform first and see whether the platform supports the coins you want to trade and the fiat currency you are exchanging.

Create a Portfolio

The cryptocurrency industry is highly volatile, making it a significant risk for your stake. However, you can create a portfolio to spread the risks. Developing one may not be easy for beginners, but you can always find helpful portfolio development tips.

Select a few best-performing coins and include them in your portfolio. That way, you can make minor adjustments to each of them while monitoring them closely. If one of the coins goes down by any chance, you will not have lost everything.

Select and Automate Your Strategy

You can use many cryptocurrency trading strategies, and the choice depends entirely on you. Standard techniques include investing in the tokenized crypto fund, staking coins, portfolio indexing, rebalancing, and scalping.

In any case, no strategy guarantees a profit. Further, in most cases, crypto trading will require you to monitor the market all through, which can be pretty tiresome. Therefore, it would help if you select your best trading strategy and automate the process. 

Start Small

It is not advised to put all your eggs in one basket, and still, not a good idea to distribute all your funds in different cryptocurrencies. No matter how good your portfolio is or how perfect the strategy is, cryptocurrencies’ volatility is still in play. 

The value can shoot or drop massively within minutes, which could mean the end for you. Therefore, always invest what you are ready to lose. Besides, you are just starting cryptocurrency trading, so there is still much to learn. 

Investing little by little will help you understand the industry as you get through the wins and losses.

Be Patient and Avoid FOMO

If your interest in crypto trading is motivated by other traders’ success stories, you could easily fall into the trap of FOMO. FOMO refers to the fear of missing out. 

Some people giving testimonies could even be con artists trying to lure you into a particular trading platform. It is a common trick whereby individuals advertise a specific coin and how promising it is. 

The aim is to instill the fear of missing out on their victims. Crypto trading may be lucrative, but most probably, it won’t make you an overnight millionaire. So invest small and be patient to avoid falling victim to scammers.


Cryptocurrencies are doing a lot for the world, but one thing that will always be uncertain is crypto traders’ outcomes. It takes a lot for a beginner to understand these digital coins. 

Bitcoin live price
price change

The technology behind them, blockchain, is not one that an average person will easily understand. However, this does not mean crypto trading remains for the elite group. The seven tips above could be all you need to start trading with cryptocurrency.

Stay up to date with our latest articles

More posts

Drivechain: The Bitcoin Upgrade to End All Altcoins?

Bitcoin, the world’s first cryptocurrency, is sometimes criticized for having ‘outdated’ tech and a tendency to evolve slowly, relative to the rest of crypto. This leaves altcoin projects looking to build on Satoshi’s original invention room to differentiate and compete through added features – such as faster throughput, smart contracts, and tokenization.  However, a hotly debated Bitcoin upgrade called “Drivechain” seeks to introduce these benefits to Bitcoin by opening up its development possibilities in one fell swoop. What is Drivechain,…

How the Address Poisoning Crypto Scam Could Affect You

“Address Poisoning” is a new cryptocurrency scam that deceives users into transferring funds to other wallets instead of the intended recipient. While it’s not the most aggressive cryptocurrency scam, Address Poisoning still tricks many into funding crypto fraudsters. Fortunately, it is easy to detect and avoid even by the least tech-savvy users. What is Address Poisoning? Crypto users should be familiar with the wallet’s transaction list, which contains all the “Send” and “Receive” transfers. This list provides details on the token…

Centralized vs. Decentralized Bitcoin and Crypto Mixers

Many people see cryptocurrencies as a way to keep transactions anonymous and private. However, recent reports suggest that most crypto transactions happen on centralized exchanges, leaving user data vulnerable to theft and fraud. The popularity of crypto mixers has been steadily growing as a way to combat this problem. A crypto mixer is an online service that helps mix funds from different crypto wallets and exchanges.  This strategy makes it difficult for anyone to trace the transaction back to the…

Play-to-Earn (P2E) Games – What Are They and How Do They Work?

When it comes to Play-to-Earn (P2E) games, there is a lot of confusion about their concept and how they work.  Behind the Huge Play-to-Earn Success: What's the Idea? Play-to-Earn games are a new way of playing games that have recently gained traction in the gaming world. The basic idea behind them is simple: you can play the game and make money. The concept works by allowing players to earn real money or cryptocurrency rewards for completing certain tasks within the…

Metaverse Games to Keep an Eye on in 2023

, The gaming industry has recently witnessed a surge in demand for metaverse games. These virtual worlds offer gamers an immersive experience and unique gameplay opportunities. With more developers investing in this burgeoning sector, 2023 looks set to be a momentous year for these innovative titles. This article will look at some of the most anticipated metaverse games of the year and briefly overview each title. How are Metaverse Games Different? Metaverse games are virtual worlds that exist as persistent…

What Are Front-Run Orders in Crypto?

Front-run orders are an issue that can have serious consequences for investors. This article will explore what they are, why they're a problem, and some methods to identify them. We'll see how to minimize the risk of being victims of front-run orders and how exchanges can reduce their occurrence. Let's dive into the world of front-run orders and learn how to make crypto trading safer. What Are Crypto Front-Run Orders? Front-run orders are when traders take advantage of an upcoming…

3 Ways DeFi Can Recover After Alameda and FTX Bankruptcy Shock

In early November, Alameda Research became insolvent. FTX tried to bail it out but faced a liquidity crisis that shortly led to its bankruptcy and marked the start of a cataclysmic meltdown in the cryptocurrency market. Here’s a brief aftermath of it in numbers: $223 billion was lost in the market cap for the entire crypto market in less than 5 hours. $15 billion was lost in total value locked (TVL) in DeFi protocols. $4,700 drop in value for Bitcoin in a…

SuperBots – A Case for Imminent Decentralization amid Recent CEX Failures

Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…

Smart Contract Security – Pitfalls and Solutions

Smart contracts are becoming increasingly prevalent as the world moves towards a more digital and automated future. Still, they are far from being the panacea of all technological ills. Smart contracts are self-executing contracts with a predetermined set of rules. They are stored on the blockchain and run by computers, which makes them tamper-proof and reliable. However, as with any new technology, smart contracts have associated risks. This article will explore some of the most common pitfalls and how to…

Looking for Crypto Marketing? Here are The Best Crypto Advertising Agencies in 2023

It is vital to have a strong marketing strategy if you wish to succeed in cryptocurrency. This is where crypto marketing agencies come in. You may successfully promote your project and reach your target audience through a crypto marketing agency.  This article will explore the top crypto marketing agencies in 2023. Moreover, we will look at their services and how to choose the right one for your project.  We will also discuss the benefits of using a crypto marketing agency.…