How to start trading cryptocurrency chapter 1

 

The digital money market is full of pitfalls. You can lose funds while storing bitcoins, buying and selling them, completing transactions on and off exchanges. How to get acquainted with new types of assets, how to avoid losses and develop trading skills

Economic shocks, financial market fluctuations and Bitcoin halving have attracted new users to the crypto realm in recent months. This is evidenced, for example, by data from online bank Revolut, which reports an increase in the number of digital asset investments among UK users by 68%.

The popularity of cryptocurrencies is also growing in Russia. According to the Exmo exchange, before BTC halved, the number of deposits made by users from the Russian Federation increased by 15-20%. The amount of replenishment of the balance for large amounts has also increased, that is, from $ 10 thousand.

Novice traders have a lot of questions, the lack of response to which can lead to monetary losses and failures in this area of activity. We will tell you how to avoid this and where to start getting to know the crypto world

It is better to start your introduction to the world of cryptocurrency by choosing a strategy. The main thing is investment or trading. The former implies asset acquisition and long-term storage. The second is short-term speculation. A trader makes a lot of transactions with digital assets, trying to make a profit in a short time.

Methods of storing cryptocurrencies differ depending on the chosen strategy. For investment, cold wallets are more suitable. This way, you can store cryptocurrency on your computer or USB flash drive. Plus - Security, no one can fly cryptocurrence without direct access to this one.

The disadvantage is that it is illiquid. If suddenly the coin rate starts to drop sharply and the user wants to sell it, it will take time to transfer the assets to the trading platform. In addition, you can emotionally show the wrong address when sending funds, which will lead to total losses with no possibility of recovery.

The exchange is best suited for trading digital assets. With them, clients can sell or buy cryptocurrencies at any time, as well as exercise additional options. For example, the leverage effect, which can be used to manage additional capital. However, this is very risky, because there is a possibility of losing all funds very quickly.

On some exchanges, you can also deposit in cryptocurrencies or use the staking function. It allows you to receive passive income to store coins. However, keeping funds on the trading floor is risky. They can go offline at any time due to malfunctions, being hacked, and funds, therefore, being stolen. There were cases when unscrupulous employees diverted customer client funds. More details on how to store cryptocurrencies, we talk about in another article .

When the choice is made, all that is left is to buy the cryptocurrency itself. Major trading platforms allow you to do this through payment systems such as PayPal, Yandex.money and others, as well as using a bank card.

Cryptocurrencies can also be purchased through an exchanger and then transferred to an exchange or cold wallet. However, this method is also not safe. There is a risk of using rosquelectr services or enter incorrect data when sending funds. If this happens, there is a 99% chance that the cryptocurrency will disappear. But, if you are in such a situation, be sure to write to the technical support of the service. It is likely that employees will meet halfway and, if possible, help recover losses.