Before getting into crypto trading, you should understand how this market works and pick a platform for trading. Crypto rates are much more volatile than traditional currencies. They live by the laws of demand and supply and react to the news background. What affects crypto rares? Here are some factors:
- The technology of a project and its use cases. If it is a valuable product used by other projects, it has a higher demand, so its asset is more valuable.
- The number of coins released. If the emission is limited, it helps to support the price level. The higher the supply of the coins, the lower the rate.
- The market trend. It may be upward and downward.
- The global economic situation, inflation.
- Investors’ sentiment and news background.
When you can analyze these factors, you draw a clear picture of what asset to buy and when. That is the key thing to successful trading in cryptocurrency.
Picking A Strategy
Here are the methods traders use:
- Scalping (short trades that may last from a couple of minutes to 15 min)
- Day trading (deals are closed within one day)
- Swing (takes a couple of weeks to a couple of months)
- Position (a long-term investment that may last for many months or years)
- Arbitrage (crypto trade takes place on several exchanges at once).
For a beginner, it is recommended to start with a swing method, for it gives time for thinking and analyzing the market.
How to Buy Cryptocurrencies?
First, of course, you need to buy crypto. How to do it? Let’s see it in the example of the WhiteBIT platform:
- Registration and verification (takes a couple of days)
- Creation of an account
- Depositing funds from a bank card
- Using a crypto converter, pick the currency you have (fiat or crypto) and the asset you want to have.
- Pay the commission for the transaction.
In a couple of minutes, the coins will be accrued to your account. Next, you can convert it to any other crypto asset or withdraw it to your bank card if you wish.
Beginner traders may take advantage of demo trading on WhiteBIT.