It’s crazy to think that Bitcoin has barely been around for more than 10 years. Back then, you needed some serious tech knowledge to trade in it and a certain amount of luck to make money from it. Over the last decade, the cryptocurrency market has grown exponentially, with over 7000 alternative ‘coins’ available to purchase. With this rise, trading crypto has become as easy as any other stock. This article aims to tell you how to get started and help you start making some cash!
Swap Coins For Coins
Most people have heard of Bitcoin these days and how much money they are worth. However, there are a lot of other notable currencies out there which are also on the rise. Even the currency ‘Dogecoin’, which was started as a joke, has tripled in value over the last 3 months. When you first start you might be unsure of which currency to buy first. Thankfully, some brokers allow you to swap coins for other coins, much like traditional currency trading. As mentioned on hedge with crypto, being able to trade cryptocurrencies easily can put you in a better position to make money. The reason for this is that you aren’t stuck with one currency and able to take advantage of market changes that happen fast. In the past, if you wanted to switch from Bitcoin to Dogecoin, you’d have to trade out of your bitcoin, into regular money and then buy Dogecoin with that cash. Although this is unlikely to make you a lot of money on its own, being able to take advantage of short-term changes as quickly as possible could help you not lose money.
Get Some Practice
As trading in digital currencies has become more popular, brokers now offer free trials of their services. What’s great about this is that if you are new to trading in general, you can practice with some virtual money to get a hang of how it works. These trial periods give you full access to all of their features but you don’t have to use any of your actual money. Some of the most popular options are Changelly, ChangeNow, and SwapSpace. All of these sites offer competitive trading fees but make sure you choose one that allows you to trade in all the currencies that you would like to. Most sites will also have really good customer help services but try to go for one that has a dedicated 24/7 helpline. Stock prices change so often that you won’t want to have to wait a few days for someone to get back to you. Getting some practice in before you start is important, the last thing you’d want to do is to rush into trading and accidentally lose loads of money. Take it slow and make sure you know what you are doing!
Start Small And Keep Watch
Everyone knows that you need money to make money but it’s important that you start small when trading in e-currencies. Cryptocurrency markets are notoriously volatile and are prone to crashing quickly. You might be thinking there is no reward without some risk but you must be careful. Unless you have a huge bankroll, every loss will hurt. Once you’ve made your first trade and own some coins (or a small percentage of a coin), keep a close watch on what its value is doing. It’s a good idea to try and keep abreast of market changes so that you can get a feel for what the world economy is looking like. In an ideal world, it will just keep going up but if you are trying to make a big profit you might have bought a stock that had just crashed because it was cheap. If you’ve done this, you’ll probably see the value of your stocks go down for a bit but don’t panic. Betting on prices going up again is part of the game and where big wins can be had. Equally though if you bought into a stock and it has made no progress for a few months it might be worth swapping out to a currency that has more movement.
Don’t Be Afraid To Cash Out
If you’ve bought 50 dollars worth of bitcoin and it’s now worth 55 dollars this may not seem like a big profit. It definitely could be tempting to dig your heels in and stick with one stock until it’s worth two or three times the value you bought it for. Trading cryptocurrency can be a long game, we’ve all heard of the stories of people who bought one Bitcoin in 2009 for a dollar, and now it’s worth $80,000. These are extreme examples and are more akin to winning the lottery than regular stock trading. If you trade on multiple stocks, trading out even when you have a relatively small profit means that you’re more likely to remain in the black long-term. The other thing to consider is that if you have got lucky and doubled your money you might get greedy and expect it to continue to rise. Inexperienced traders often lose big by not selling at the right time. Don’t get caught up thinking about how much you could’ve made if you’d waited. Money made is money made, be grateful you didn’t lose any! If you’ve made a profit on a trade that is a significant amount of money, don’t be afraid to trade out and take the win.
The Only Way Is Up
Trading in cryptocurrency is big business. Going from a relatively obscure, unreliable, and occasionally dangerous system, it is now a fully legitimate and easy way to make money. With the advent of websites and applications to make the process easier and safer, anyone with a credit card can log on and start trading coins. Making sure you have access to a service that offers coin-to-coin trades will help immensely when you are starting out. The appeal is undeniable and the profit potential is huge, given how rapidly prices can climb. I hope this article has given you some key tips for trading in the world of cryptocurrencies and prepared you for making some real money.