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  • Blog \ I Want to Engage in Trading, Where Should I Start?

    I Want to Engage in Trading, Where Should I Start?

    Andrew Verkholantsev
    CTO, HiCoTrading.com

    First, of all, we would recommend you to start by determining the goals that you set for yourself!

    Many people refer to trading as a hobby, but this is completely another way around! Professional traders are the ones who have substantial experience, willing to put up certain funds at high risk to earn huge profits.

    Next, determine how much you are willing to invest in cryptocurrency.

    If you plan to make trading your primary source of income, then start to study the nature of cryptocurrency and everything related to it. Since at present, 95% of the cryptocurrency is useless. Are there any decent examples of traders or investors who have earned on cryptocurrency back in 2017.

    Then, choose and define the strategy to follow. Are you a trader or an investor? Arbitrage, scalping, algorithmic trading or good old HODL? Do you plan to engage in crypto for a few months or several years?

    We highly recommend you to go through basic training – reading relevant materials on trading, study a few books and start trading on a demo account for at least 3 months before getting engaged into the real market game.

    Read about the coins available and well-performing on the market, choose a cryptocurrency asset, preferably top currency – BTC or ETH, they are the most liquid and widespread in the market.

    Buy the digital asset and choose the relevant platform that suits your needs. Nowadays, there are more than 300 cryptocurrency exchanges in the world; we suggest you use the most famous exchanges because they always have liquidity – that means, buying and selling almost any amount of cryptocurrency with minimal costs. Make sure you follow a popular simple rule – don’t put all the eggs in one basket.

    Trading requires a lot of concentration – it is not a hobby you can pay little attention to, drinking coffee or beer and playing online games while your funds are at risk. Cryptocurrencies are very volatile – the price can change in a vast range in just a few hours, and the reason for such jumps can be a variety of events so that the crypto-currency trader needs to analyze the information flow continually.

    Before you invest in a specific coin, you should study this asset. One of the best tools is the Coinmarketcap website, where information about all coins and tokens is collected: their capitalization, offer size, trading volume, and so on, that is, with this service you can compare different cryptocurrencies.

    Coinmarketcap.com – is one of the best tools for a trader

    The easiest way to keep track of the cryptocurrency world news is to subscribe to publications in major media and leading blogs. Even more useful information can be found in social networks: forums dedicated to cryptocurrency on Reddit, Telegram channels as well as threads on Quora. Another excellent data source is a CoinMarketCap that monitors all events that could affect the exchange rate of the coins traded on the exchanges.

    Always remember, that cryptocurrency trading is different from trading in the traditional classic stock market. To succeed in this young market, you will have to learn how to find reliable sources of information, analyze data, choose the most suitable exchanger and wallet for the current task and use indices and tools for portfolio management. Have a nice profit!