How to trade crypto in 2021 ? A complete crypto trading guide
Learn about cryptocurrencies for fundamental analysisThe cryptocurrency market is different from that of Forex, even if the substantive rules are ultimately the same. This market is still very young, extremely volatile, and over-reacts to the slightest information. If you want to be good at crypto trading, it is essential to follow the news regularly and to inform you of anything that could affect the price of a currency: regulation, partnership, launch of a testnet… Every piece of information is valuable. You need to collect this information before others so you don’t get caught up in a market turnaround. .
Training in trading, for technical analysisKnowing the world of cryptocurrencies is far from enough to trade them properly. Trading is art in its own right,and if you have never traded before (stock exchange, Forex, or otherwise), it is crucial to train yourself in technical analysis methods to enter the market at the right time. If you want to trade cryptocurrencies as an amateur, you can find very interesting tutorials online, including many technical analyses conducted by users on trading view. If you want to get into trading more seriously, consider investing in cryptocurrency trading training now. It is always better to sacrifice a few hundred euros to accumulate knowledge, rather than to go it alone and make the worst mistakes of the beginner trader. The training offered by Coin Trading is ideal for beginner traders and will allow you to avoid losing money by making bad investments. The TDC team shares its signals to let you know when to buy and sell at the right times,both to take advantage of thebullish movements and to protect your capital from market falls. You will learn to earn money even on a downtrend,and you may consider an interesting income supplement, or even make it your main activity after a few months of experience.
Identify your trader profileA good trading training will not only allow you to learn to master the analytical tools and develop trading techniques, but also to acquire a psychology and conditioning essential not to give in to the panic movements of the market. The psychology of the trader is essential, and leads to several questions that will allow you to identify your profile.. As you go along, you’ll learn how to discover yourself and your stress resistance threshold. Eventually, you will be able to know if, in your strong interior, you are willing to risk big to earn more, or if, conversely, you live badly the risk and prefer to minimize it, even if you earn less. It is important to get to know each other, not only to live well in your trading activity without inflicting toxic stress, but also to keep a distance and never make a precipitate choice in a moment of panic.
Short-term or long-term trader?As a crypto trading strategy, there is short-term crypto trading and long-term crypto trade. Short-term crypto trader is interesting from the point of view of profit possible thanks to the volatility of cryptocurrencies right now. The fact that cryptocurrencies are not regularized to date and are not followed by financial authorities makes them very volatile, resulting in dramatic price changes. Their price is formed strictly by demand and supply in the crypto market. It is an opportunity but also a threat for obvious reasons. Even if the principle of trading traditional currencies buy low sell high applies to cryptocurrencies too, there are a few basic rules for crypto trading. To begin with You have to invest what you are willing to lose. The volatility of crypto currency allows you to have sheaths for weeks, but also you can lose all the profit obtained in 24 hours. Pay attention to the currency you want to trade. A novice crypto trader will have to choose the most well-known cryptocurrencies like Bitcoin, Litecoin or Ethereum. Their technology is reliable and they are a little more stable, already passing some stress tests. For traders who fear the volatility of cryptocurrencies, there is long-term trading. There are traders who hold a position for weeks or even months to avoid temporary price falls and hastily made decisions.
Trading CFDs on cryptocurrenciesIt is true that trading platforms offer plenty of opportunities to buy and sell cryptocurrencies, but they were not designed for crypto trading, the participation costs could be quite significant. For those who want to avoid these costs or the steps to access these platforms there is the option to trade CFDs on cryptocurrencies through a broker. With the growing popularity of cryptocurrencies and the crypto module of MT4 and MT5, many online brokers offer the ability to trade contracts for difference on cryptocurrencies. By opening a position on this type of derivative, the crypto trader negotiates on the movement of the chosen crypto currency. The advantage of crypto trading CFDs is that it makes a profit in a bull market as well as in a bear market. In addition, CFDs operate on the principle of leverage. For example, if you anticipate that the price of Bitcoin will rise, you can place a purchase order of 5 CFDs for the price of EUR 10,000. If the price goes up from 100 pips to 10100 EUR and you close your position, you earn 500 EUR without ever actually owning the Bitcoin. Of course, you lose 500 Euro if the price drops to 9,900 EUR.
Choose your trading platform wellChoosing your platform is essential for several reasons:
- The security of storing your cryptocurrencies is crucial.
- The ergonomics and functionality offered by a platform affect your performance.
- The fees applied can significantly reduce your margins.
- Withdrawal limits are sometimes binding.
- Not all platforms offer the same offer of cryptocurrencies.
Choices in available pairsThe first element that will guide your choice will be the pairs you want to trade. Indeed, if some pairs are on all platforms, this is not the case for all. Moreover, some platforms describe themselves as platforms specialized in small pairs, looking for the next x100.
CashWhen I talk about cash,I am not talking about water. I am talking about the volume on the platform, or the amount of purchases and sales made. Why give importance to this criterion? Because some platforms don’t have cash on their pair. This means that there is not always a buyer (or seller) when you try to sell (or buy) a cryptocurrency. The real problem here is that if you’re not careful, you might find yourself stuck with cryptocurrencies that you want to get rid of, without being able to do so.
Features availableDepending on your trading style, some of the features on the platforms will suit you better. So, if you’re more of a scalping type (shorttrades that last a few seconds), it’s probably not a good idea to head to a platform with latency issues. Similarly, some platforms will offer levers for example. Levers are tools to amplify any price movement. But we will come back later on this very particular subject, through a dedicated Tribune. Finally, it’s always good to check that your platform allows you to place orders like stop-stop-loss, take-profits,or whatever. take Just as a lumberjack wouldn’t cut wood with a blunt axe, you don’t want to trade on a wobbly platform!
Managing your risk wellIt is usual to make many errors in trading. Often when we start, our technical analyses do not go as planned, because the market is always full of surprises. But the costs of our mistakes can be limited, through efficient risk management. To ensure this, you can start by memorizing some basic rules:
- Only “trade” with sums of money you can afford to lose;
- Don’t go into counter-trend trading unless you’re already experienced in other markets;
- Regularly secure your gains in fiat currency so you don’t lose everything in the event of a widespread market crash;
- Never sell all of your chips from a cryptocurrency. Always keep some of these tokens in “latent” to diversify your portfolio to the maximum for better risk dilution and to take advantage of an upward trend that would continue.
- Always position a stop loss that would invalidate the scenario you anticipated.
Bitcoin’s trading toolsIt’s done, you’ve chosen your favorite platform, you’re ready to trade! With a keen eye, you wait for your first shot… and there is astonishment, you do not know what to do. Indeed, it’s good to join a trading platform, but it’s better to know what to do about it. What to trade, and when. And to become the Bitcoin trader whose soul you feel, you’ll have to find opportunities for yourself. And when I say for yourself, it means with your brain! Not by following trading signals from a stranger who wants your ruin.
Technical analysisYou all know what technical analysis means. But you can’t exercise anywhere. Indeed, most trading platforms do not allow you to perform analyses with plots. That’s why, very quickly, you’ll have to find a platform that you like (the Trading view site is rather consensus, but there are other options). Only with such a tool will you be able to arrive at the above result. After that, the choice of the platform itself is up to your preference!
Bitcoin trader’s strategy and cryptocurrenciesHow can I put it simply… The trading strategy is to the Bitcoin trader what the parachute is to the survival of a fatal fall: essential. Never, never, never, never, will you trade without a strategy! I beg you, protect yourself… (great, now I feel like I’m doing prevention for sexually transmitted diseases…) Your strategy will guide you on three fronts:
- Entering a trade correctly
- Keep an eye on the latter
- Make a clean exit
- Which trading profile suits you best?
- What are your strengths?
- What about your weaknesses?
- Build and improve your trading strategy
Becoming a crypto trading expert on a daily basis: the importance of routinesIt was discussed slightly at the first Trading Tribune, and I will continue to insist on a point that is essential in my opinion: psychology in trading is a discipline not to be overlooked! When you’re trying to control your emotions and impulses, there are simple and effective methods.
Probably the first of these methods is routine.Yes, yes, I speak well of routine, the very one that you may be looking to run away from all the time in your daily life! Well, in trading, we kiss the routine, we open his arms. What for? Because performing similar and repeated actions reassures the brain. This gives it a calming climate, and you will then control your emotions much better. And when I talk about routine, it’s not just in the way of trading. It’s in your life. Learn about meditation, the benefits of getting up early, hydrating, taking care of yourself… everything related to a named discipline: personal development.
ConclusionThis third Trading Tribune ends here! I hope you liked it. Honestly, I take great pleasure in sharing all this with you on a weekly basis! Trading is truly an exciting world but above all multifaceted. The path to becoming a true trader of Bitcoin and cryptocurrencies are full of opportunities to discover new unsuspected topics. Often, the only one that is visible is that of money, trading signals and charts. But then you miss the main one: psychology. Whether it’s trader psychology or market psychology
Day trading crypto can bring a massive profit. But, it’s also very dangerous. You can win and lose a lot of money quickly. That being said, trading crypto is exciting, and also very hard to keep peace in mind under stress.
The best crypto for day trading are :
- Binance Coin (BNB)
- Ethereum (ETH)
- Tron (TRX)