What is a crypto trader?
Crypto traders can be likened to day traders who trade in anything that has value. They turn over their cryptos within 24 hours, and sometimes less. Since crypto trading is not regulated, it attracts a huge number of scammers.
Skills needed for crypto trading
To make good money from crypto trading, you need to have high-level skills and will need mentorship from experienced traders or mentors. The patient experts get richer when it comes to cryptocurrency trading because the markets are very volatile.
It’s important to note that anyone can become an expert on how cryptocurrencies work. All knowledge is free for everyone online but learning how they function is only half the battle won; mastering them requires more than just understanding how bitcoin works (or any other altcoin).
Why is Crypto so volatile?
The markets are so volatile because they are decentralized, which means that no single centralized authority controls what happens with the market. This volatility is caused by market participants (especially speculators) constantly trying to guess the subsequent price action of any given cryptocurrency token.
There can be several reasons why prices might increase or decrease dramatically. It could be from news about a project, updates on a blockchain network, or supply and demand changes for a particular coin or token. To trade cryptocurrencies successfully, one has to know when the markets will go up and down, irrespective of whether there was any significant reason for such movement in the market. In short, trading calls should come from experience and not from the news.
Crypto is fast-paced and ever-changing
The crypto market is constantly changing. New tokens are being offered in so-called ICOs (Initial Coin Offering) every week, and existing cryptocurrencies are constantly under development to improve their technology, affecting prices.
It’s essential to always be up to date with what’s currently happening in the cryptocurrency world because you can trade effectively. Please note that this does not mean that all information has to come from internet sources alone; some of it could come from watching television or listening to the radio, for instance.
It would be best if you never traded on rumours but rather on facts presented officially by reliable sources of information. You’ll find it on social media platforms like Reddit and Twitter, reputable newspapers and magazines, or announcements made directly from websites or official sources of projects you trade.
You can trade 24/7
The crypto market is a 24-hour market, meaning that the markets work in all time zones, and they never close, so there’s always a chance to trade at any given moment. This means a trader needs to be prepared for a regular work schedule if they want to succeed.
Useful tips for novices
Many traders have found it helpful to have two monitors on their computers: one for trading and another for keeping track of news and social media posts about cryptocurrencies. To properly analyze the market, you’ll need several tools at your disposal, such as:
- email accounts,
- expert advisors (EAs) based on technical analysis indicators
- charting platforms
- Messaging platforms like Telegram
- social media platforms where you can find the latest crypto news.
Good traders always try to build their own opinions based on historical data. It would be hard for someone else to beat you if you had all the relevant information at your fingertips before execution.
Crypto exchanges are selected from those who want to trade their digital assets for other tokens or cryptos. As such, there’s no single best exchange because everyone uses different services depending on their needs.
Some traders prefer to use a so-called “fiat exchange,” which is an exchange that allows one to deal in fiat currency s, such as the US Dollar or Chinese Yuan. Others see cryptocurrencies like Bitcoin or Ethereum as their base currencies and only wish to deal in tokens; these are called crypto-to-crypto exchanges.