5 Steps - How To Get Started With Crypto Trading | FundTheTrader

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5 STEPS – HOW TO GET STARTED WITH CRYPTO TRADING

5 Steps | Bitcoin Trading | Crypto Trading

Getting started with crypto investing and trading can be quite daunting. I had heard about bitcoin and cryptocurrency for many years before starting, but never took the initiative to jump on and understand more. In 2017, I was extremely lucky to cross paths with quality friends who turned a cloudy concept into actionable steps. From there, I just absorbed more and more information to the point where talking shop and trading crypto became second nature. 

Had I not received that hand held guidance through the extremely detailed crypto process, I most likely wouldn’t have entered the crypto space until it was too late. For that reason, I’m writing this for those who’ve heard about crypto, but are overwhelmed and too scared to get involved. These people (like myself) tell themselves, bitcoin is a gimmick and will eventually die out. If you’re one of these people, I encourage you to stop lying to yourself and take action. 

It’s important to know that you’re not late. You haven’t missed out on the biggest crypto movements. Why? In the past cryptocurrency was on shaky ground. Government bodies and large financial institutions didn’t have control, and did everything to curb interest and investment towards the crypto markets. However, it’s 2021 and bitcoin has hit highs never previously experienced. World’s biggest banks are starting crypto desks. Investment companies are starting crypto ETF’s.

Crypto is here to stay, and if you don’t have a small percentage of your portfolio invested, you’ll be left behind and potentially miss out on major gains. We don’t want that to happen. Is it risky? Sure it is, but what isn’t nowadays. 

Here are the five actionable steps that will reduce the uncertainty and help you get started:

STEP 1 – Pick an exchange
STEP 2 – Pick a wallet
STEP 3 – Pick a strategy
STEP 4 – Pick a coin
STEP 5 – Pick a community

STEP 1 - PICK AN EXCHANGE

Due to crypto’s decentralized nature, there are a vast number of exchanges.
A battle is taking place as to which exchange will emerge the victorious and dominant cryptocurrency exchange in the world. These companies are fighting for market share while people are still doubting the legitimacy of cryptocurrency and blockchain technology. Unlike many years ago, there are some clear front runners that are safe and secure exchanges which you’d be able to trade bitcoin, ethereum and other alt-coins.

It’s very common for crypto traders to have accounts at different exchanges.
Why? Not all exchanges carry all coins. To find out which coins are carried at which exchanges, check out coinmarketcap

Our recommendation would be to start off signing up with either Binance or Coinbase. One of these 2 exchanges will help you get access all the major coins and the majority of alt-coins. 

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STEP 2 - PICK A WALLET

Crypto wallets also known as cold storage could be digital or physical. It’s generally used as a means to secure your coins from theft or loss. 

When blockchain and crypto was developed, wallets were not really optional if you meant to invest in coins. It was a must so that no loss occurs. However, as time as progressed, and crypto has been widely more adopted, it’s becoming safer and safer to keep your coins on the exchanges (assuming they’re mainstream and popular exchanges)

Another reason why wallets may not always be optimal is because of the fees associated with crypto trading. Withdrawing and depositing your coins from one exchange to another, or to a wallet will cost you fees. Basically, as soon as you move your coins, you’re paying fees. For that reason, think twice before making a decision to move your coins. For crypto traders, these fees can be disastrous if not handled with great care. 

Nevertheless, it’s good to have a wallet handy when you’re in the crypto investing game. The 2 popular digital wallets are trust wallet & metamask 
With these wallets, you’ll be introduced to concepts like “SEEDS”. Seeds are simply 12 words that is used to identify your wallet and protect your coins from hacking. 
These words have to be in order, and must be documented by all means necessary. This way if ever you’ve lost your wallet, you can retrieve your coins through your seeds. 

A physical wallet would either be the trezor wallet or the ledger nano wallet. Both these allow for coins to be stored in a physical device and kept within arms reach. 

STEP 3 - PICK A STRATEGY

Crypto is a relatively new investment market, that has plenty of room to evolve. It’s got characteristics of both forex and stocks. Through coins, it acts as a store of value, and through blockchain technology, it acts as corporations. Here’s how you can begin to craft a strategy based on this information. 

TIME HORIZON
If you’ve arrived to the conclusion that you’d like to get into the crypto markets, ask yourself how long? Do you want to temporarily trade the major coins, or are you looking to hold for the long term? Be honest with yourself and make a decision. Once a decision is made, move on to next point of consideration.

TRADING/INVESTING STYLE
There are so many ways people can make money off crypto. Some of the below suggestions may be advanced techniques, and is not recommended for new crypto investors. 

– Trading major coin couples (i.e. bitcoin/USDT, ethereum/USDT)
– Trading alt coins by monitoring market pulse and significant trading volume increases
– Long term holding of major coins
– Buying ICO’s (initial coin offering
– Mining coins (POW – proof of work concepts)
– Staking coins (POS – proof of stake concepts)
– Lending coins (i.e. shorting)
– Diversifying by buying into a 100 or 200 low cap coins, and maintaining a DCA (Dollar cost averaging)
– Margin Trading

For those just starting out, we recommend you use a passive style of investing rather than an active trading style. Once you’re more familiar with how crypto works and the importance of precision in copying and pasting wallet addresses, then you can consider becoming a more active trader. 

STEP 4 - PICK A COIN

Right off the bat, the general assumption is that cryptocurrency is either gambling, or completely random. The truth is that if you understand what fuels this market, you’ll become empowered to get involved. 

Everyone knows the flash words bitcoin, ethereum and ripple. However, many haven’t had the chance nor the time to go any deeper and learn how many alt-coins are actually launched to solve and automate many every day problems. 

So how do you pick a coin? Simple process.

1) Project Information
-Read the whitepaper 
-Visit the website
-Check the social media channels

2) Coin Market Capitalization
-Find out the price history and related information
-Find out the coin supply and max supply
-Through coinmarketcap, view how many have that particular coin on their watch list 
-Find out the coin ranking

3) Blockchain Network
-Which network does the coin trade on i.e. bitcoin, ethereum, binance
-Is it proof of work, proof of stake or hybrid concept

4) Fees, Speed and Security Of Transaction
-How high are trading fees/mining fees
-Does the coin have a speedy transaction time
-Is it a privacy coin or have privacy features

STEP 5 - PICK A COMMUNITY

Crypto markets operate much like every other market out there. Getting the pulse of which coins are in demand and which aren’t will help you stay out of trouble. 
Given the novelty of the technology, it’s important to have continuous support and guidance from friends or a community. 

The goal of our community is to answer any questions you may have or even take the time to hand hold you through the step by step process of getting started with crypto trading. 

DISCLAIMER: This blog should in no way be confused for financial advice.
This is for information purposes only.
It is not intended to be financial advice, nor should it be taken as such.
Please consult a financial advisor for your specific situation.

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