Best Trading Tips for Cryptocurrency Beginners 2021

Cryptocurrency

In recent years, the world has seen the cryptocurrency market blooming like sunflower and in the direction of profit for investors. It has created new millionaires in the world, all thanks to the acceptance of bitcoins, ethereum, litecoin, ripple and other major internet currencies. 

Traders are gaining confidence with the governments of various nations cooperating with people and giving a green flag to transactions. It is saving time for business people and their extra money that goes into several taxes while dealing in the fiat currency.

That is how everyone is celebrating the incorporation of the new age technology in their lives. 

Interestingly, after 2020, which is one of the worst years in the history of humanity due to the COVID-19 pandemic outbreak and multiple economies crashing down, folks losing their jobs and other problems, cryptocurrencies remained the only positive in people’s lives of people.

Anyone who thought of investing in the market got returns in bulk. In other words, coronavirus cast a magic spell on the cryptocurrency market.

When all other financial bazaars were struggling to draw in money, the cryptocurrency market had it like a free-flowing river. It brought joy on many faces, especially those who lost everything during the dangerous virus and mayhem. 

Top cryptocurrencies globally 2021

The thought that cryptocurrency can make you rich is legitimate because it is selecting the asset, which spells the difference. If you select a random digital currency, then it may not even have a similar effect until and unless that grows out of proportion. So, knowing about your idea of trading is essential. Give yourself some time and see how you are getting benefited from distinguishing cryptocurrencies. 

Notably, bitcoin is the oldest and the most prominent digital coin, which should be on your trading list. However, it is at the same time quite expensive to purchase a single unit. Internet currency grew enormously. 

On January 31, 2020, bitcoin was rallying around USD 9334.98 / unit. Moreover, its value downsized further on March 16, 2020, to USD 5024. But that was the lowest curve, and it started to exhibit what it was capable of. On January 8, 2021, it crossed all barriers and touched a peak of USD 40675.80. That was totally unexpected, and people who invested during the lean patch benefited the most. 

However, it was the mix of experience, patience and watching the market keenly. Observation worked wonders for people who waited that long and held their nerves in the volatile market. The ones who gave up have nothing but to rub their empty hands. Most importantly, one cannot attribute it to sheer luck. It was a well thought out plan by trading experts. It is the dwarfish time when you invest to reap the highest reward. 

People who learnt the game of harvesting are intelligent and now one of the richest in the trading circuit. 

Which Cryptocurrency is Better for Trading?

Here are some of the top cryptocurrencies for you to invest in:-

  • Bitcoin
  • TRON
  • Bitcoin Gold
  • EOS
  • Bitcoin SV
  • Dash
  • Bitcoin Cash
  • Ripple
  • Ethereum
  • Litecoin
  • Dai
  • NEM
  • NEO
  • Binance coin
  • Tether
  • Nano
  • Monero
  • Chainlink
  • Celsius
  • Cardano
  • Stellar
  • Polkadot
  • Dogecoin

As a beginner, one should first skim through these options because they are the best available ones that you will find for investing. Incredibly, each of them has shown their potential during the COVID-19 time. 

So, if you want to knit your fortune, then the following steps can take you there. If you are a new trader or planning to enter one of the most pivotal and volatile markets, then hold on and think about it again. The research it requires is immense, and you cannot reap your fruits in a day. You should go slowly but steadily and initiate one stride at a time. After getting accustomed to market theatrics, you can invest heavily and seek profits. 

Here are some classified tips for trading in 2021

1. First, learn how to trade cryptocurrency:-

It is something a trader needs to pick up from the market itself by entering it. The best way is to select or hire a brokerage firm like TradedWell to ease things out by recognising trends. The broker would help in facilitating different assets, instruments, analytics, tools and markets for trading. Be watchful and see how the cryptocurrency market is shaping up.

2. See the market:-

You have to be a keen observer before taking a plunge into a direction and realise what do you want? The observation should be sharp, which should include the intrinsic and covert information of the cryptocurrency market. You should know the policies of every country and what impact they can have on digital coins. 

3. Accumulate funds:

Before beginning, a trader should not shy away from beginning with a humble start. It lets them know the market even better and from the roots. How even the tiniest of steps and disrupt the market, it tells you about it. So, one should amass funds keeping in mind the experience. Here, cowing down to the peer-pressure would mean losing your money. So, do not listen to the behest of what others believe. It is a pivotal rule. 

4. Deposit:

Now, once you have the bucks, deposit them into the brokerage account’s wallet. You will have to make some deposits before you start bidding in the market. One might have to follow a specific process depending on the broker’s features.

Key functionaries and tools needed.  

If someone wants to succeed in the market of cryptocurrency, then learning the trades of the game is critical. You have to make a comparison among several options that you have as an investor and see what fits the best as per the needs.

It makes for a critical decision because changing a stance would bring confusion and draw interest out of trading. Thus, be careful and vigilant about your every step. 

Proper software and application 

Online trading is all about arriving at the right place, with full intent and correct time. Missing any one of them would send you backpacking. Likewise, there’s a fourth dimension to it that is often forgotten by people, that is, the application and software you bring into use. Ensure that the one you’re using helps you when the chips are down. 

If the application and software used by people do not function properly, then the losses can be massive, precisely for the day traders. They have their fortunes suspending on timing, on missing that profits go away instantly. So, devices and their software must work properly to provide an experience of benefits in the market. 

Exercising the idea helps in keeping a healthy relationship with the market going. Day trading stalwarts know how important it looks a certain way when the money involved is big. Furthermore, cryptocurrency is all about exposing yourself to leveraging and earning big. It involves the highest risk. Hence, the selection of software must happen by keeping in mind all credits. 

That’s the reason; several brokers are offering user-friendly mobile applications to their users so that there is no connectivity issue. Also, traders spend immense amounts of time and money on it. So, expectations are high, and it better be good to revert the return. It should help with the trading style of a market player and must be customisable at the same time. 

See the fee structure. 

When you are channelising a business or a living out of trading and have no other job, then every penny counts. So, before using any exchange or broker for cryptocurrency trading, check whether that has a high fee structure or low. Inquire about the commissions and hidden charges that often play a spoilsport for a trader. That does not go well with any investor and adds to the weightage of pulling out more money. So, if anyone is going through that strenuous circle of extortion, quitting is the best chance they have in their hands. 

Primarily, there are three types of fees that get levied while trading. Trade fees, withdrawal and deposit fees and exchange fees. 

  • In trade fees, there’s a certain amount of levy that a broker or an exchange charges from the market player while purchasing and selling different types of assets. Here, the profits and losses do not matter to the broker. They focus on taking a chunk out of the service they offer. So, the trade or exchange of currencies is chargeable. There is a taker fee involved in it. Anyone who accepts the concept of trading must pay it.
  • One may find an exchange fee, which is usually there and charges people for using their services for exchanging currencies. Every time trader or an investor does that, this charge gets deducted from the pocket of the market player. 
  • Withdrawal and deposit costs or fees are important because it directly impacts your decision making. How can you afford to deposit or withdraw? Suppose you need some money after depositing, then you would think several times before withdrawing because another charge would be waiting to make an appearance. So, it adds to huge unnecessary expenses in the volatile market.

Security

The world is not secured, and the market has its own reservation against the fraud practices that come along with crypto trading and transaction. There are several fake websites that are working as imposters and looting the money of people. If that continues, then no one would adapt to trading, which is not a good thought for the global economy. So, while choosing a trading broker, one must see how the security features are loaded on that. Whether the encryption facilities are in place or not? 

Once the account gets hacked or stolen, then you can’t be helped. Your all money would be siphoned off in moments. So, to rescue from such embarrassments and to check the security features is a must. Keeping everything secured is like half the battle won in today’s trading perspective.

Cryptocurrency tips for beginners 

Beginner traders are the ones who are taking the legacy of trading forward. The baton of investment has to be passed from the veterans to the novices so that the cycle of the economy continues forever. Thus, nurturing new traders in the process is pivotal. 

Newbies traders should keep their mind focused and think about learning small things of the market before jumping on to the substantial one. But before plunging deep into the market of surprises, perils and uncertainties, follow the following rules:- 

Know about different digital currencies and their growth

Any trader who is beginning to trade in the market should check which cryptocurrency has the maximum strength and volumes in the market. It can be judged by reading about them in newspapers, watching the news, viewing videos and listening to podcasts related to finance and business. If you can pull it off at these gigs, you can become a go-getter in the crypto bazaar; otherwise, not moving ahead is the best alternative you can gift yourself. 

Understanding the blockchain process 

Blockchain process is one of the toughest to understand. You need to bestow yourself with some time to understand and see how things turned out to be while trading. One should accept and wait for the mystery to unfold. If it is favouring you, then profits are all yours. 

You should see how tradable and easy bitcoin ripple, litecoin, TRON, NEM, NEO and other internet currency assets are. Only after scrutinising them all and understanding the greater significance of trading, a new trader can fetch profits out of them. 

After getting the full view, it won’t be surprising to know people earning millions in cryptocurrencies; because knowledge is power. The cryptography in blockchains stores every information and brings transparency for everyone. It helps in tracking and learning from a traders mindset. However, the crucial and confidential information remains intact. So, no worries about the theft of identity. 

Do your homework

When you are entering the crypto market, then no one has your back; you have to support yourself in every thick and thin. Somedays, you might earn well, and other days do not occur due to several reasons. In the latter days, you’ll have to take some time and see history through the blockchain and evaluate what went wrong. The market would tell you things that you don’t generally imagine otherwise. 

Clutch opportunities and volatility 

Trading the cryptocurrency market is akin to jumping in the weather of volatility where you cannot predict what could happen next. So, prepare yourself to become that smart and out of the normal zone. As mentioned above in the article, you can check how bitcoin slipped to the lowest and then surged again to break all records. So, that’s how you move forward and take on the market. However, it is risky, and that’s apparent for everyone. But if you can do some research and go with full protections, then profits are way bigger than one can anticipate. 

Earn through speculation

Here, you do not own a single unit of cryptocurrency. Thus, you don’t buy but speculate whether the market would fall or rise. If you get that right, then the difference between the rising and falling with respect to the price at which the speculation happened would be offered to you as a profit. For that, you might need some bucks in the deposits but not in hand. So, if you can pull it off nicely, then get into it. Otherwise, stay away, 

Notably, speculating trading is suggested to those who have a vast amount of experience with them and can predict the trend of the market. It requires in-depth information and knowledge about the cryptocurrency world. If that goes wrong, then losses are inevitable.

Buy them

Purchasing the assets is the most suitable and conventional method of trading, which requires patience and viewing the market until it hits the lowest for buying. Similarly, you sell them when the appropriate time arrives. It is those moments that are precious for traders. Also, as opposed to day trading, less risk is involved here. You do not need leverage but wait for your chance and earn. 

Types of strategies needed by beginner traders

News alerts:-

If you know how to check important news and lock your fortunes with it, then there is no better trader than you in the market. You can see that short-term cryptocurrencies react quickly to the news. They are sensitive to them, and rise and fall happen in them accordingly. If you can observe those fluctuations and notice which type of information is affecting the digital coins positively and negatively, you can earn great money. 

Generally, when a country or a conglomerate like Amazon or Microsoft says that they will incorporate ripple technology and its coins, you’ll see the prices rushing and touching horizons in no time. However, on the other side, if a nation puts sanction on the trading of a particular cryptocurrency, then the downfall will happen. People will exit from the asset, and supply and demand for that crypto coin would disappear in minutes. 

Hene, keeping track of these markets is important for everyone who wants to make a mark in the market of uncertainties. 

Swing Trading 

It is a powerful concept of trading cryptocurrencies. The strategy requires watchful attention and eyes. You have to stick to screens and keep track of the market activity. The idea is to see the correction in the market both ways, positive and negative. You can generally understand it when the price bars or candles overlap; then there is some correction. If you have the ability to understand the chart, then investing during that moment is helpful for you and your bank balance. 

The trending prices move upwards in no time. Also, they fall in a similar way. So, recognising the trend is the key to the market. In its entirety, it takes more time than money to see the market and listen to expert advice. In stock trading, these swings are represented by bulls and bears. When the market is surging and does not stop for a while, that is a bulls market. If traders invest during those moments, then profits are waiting to happen. Also, through predictions as well, one may decide to earn in the market. How easy is that? Likewise, when the market falls, that is called the bears market. It is also the time of earning. However, for reaching that position, several risks are involved too. So, you have to be really careful about the market trend. 

Take your time, and see if it rebounds in a short duration because that does not seem a convenient form of investment. Day trading may not be a very good suggestion when the market is moving on either side. As per recommendations, newbies must wait before that gain enough experience to be able to take the pressure that comes with these types of trading situations.

Margin trading 

Trading on margin is an act of learning and knowing the crypto market. If you have the sense of predicting the upcoming shift in the price of a digital currency, then you are a sure shot winner of the game. Here, you borrow the money from the broker or exchange and bet in the financial market. And if your thought matches the flow of the market, no one can stop you from becoming wealthy. It is one of the shortcuts that are legit. 

When the price predicted by a trader materialises in the market, then there is no stopping to the fortunes. However, different brokers and exchanges have varied rates on margins. Global TradeATF and 101investing are some brokerage firms that are good in the business and think about their clients before anyone. 

Moreover, you should do all your research and practise on a demo account before picking up these kinds of tasks at hands. 

But always keep in mind that when you speculate or predict the market using the margin, then the chances of losing money hikes simultaneously. So, take your time. 

Knowing the system of taxation and rules 

Every country has distinct rules for allowing business. The transaction system is different and so are the banking facilities. So, a trader from a particular nation should be aware of the norms because ignorance here can cost you profits. 

Governments in several countries are unsure about regulations to be applied to cryptocurrencies. So, they may have objections to different types of transactions. You should know about it and act accordingly. Law and order deserve respect. If that is in place, then you have many things sorted at your end. 

Investors and traders get classified into countries, and they have to comply with the rules and follow them as the government bodies ask people to do. Hence, complying with the convoluted requirements of reporting is the best way to receive some exemption from strictness. 

Likewise, when tax reforms happen, you should keep a check on them as well. Also, seeking services from a chartered accountant is not a bad plan either. You can stay assured and focus on your trading game, which can help you achieve your aims at the right time. 

Furthermore, the needs for cryptocurrency taxes may be different from what is charged on wealth and properties. So, a trader should inquire about it before stepping into the market. 

Trading tutorials and courses 

The more you learn about financial markets, the better you’ll get with time and knowledge. You have to remain updated to beat your competitors. Moreover, if you have to grow and match the steps with changing times, then educating yourself with the best means is the only option. 

Education empowers you to convert even half chances into full in the crypto markets. You know how to avoid greater risks and take advantage of even the disadvantaged moments. You can credit the time invested in reading, listening and watching various tutorials, courses and webinars by experts and learned champions of the online market. They squeeze their years of experience into a few hours of reading or videos. Acknowledging them and following their plans are in the best interest of a trader. 

Besides, you can work on your craft of online trading. Precisely, you can learn about correcting errors and not repeating them in the future. Trading with a motivating way can save you from embarrassing situations every time in the crypto market. 

Educating yourself can help in ironing out misconceptions of the internet currency market let you blossom like a flower. 

There are myriad ebooks, tutorials and courses available with brokers like Oinvest. So, choose it and get on with the best available material. Interestingly, the brokerage service company keeps on updating the facility and introduces ingredients that can help a trader grow instantly. 

It is about absorbing information. You get better and greater by accumulating it. There’s no other way you can locate to enhance your performance. One can find a range of topics that suffice and cover intraday trading, inter-day trading, swing trading, options trading, CFD trading, ETF trading etc. Sharpening and mastering the art rescue an investor when a difficult time like COVID-19 appears without a call. At that moment, it is the intelligence drawn through updated studies that assist in mitigating them. 

Conclusion

If you trust your skills and know the market, then crypto trading is not a big deal for you to invest your funds into. However, you have to choose good brokerage firms like PrimeFin, IGMFX, ABinvesting and others that are safe and not scam. Moreover, a trader should back himself/herself with the market knowledge and, in the absence, must wait before it dawns on time. 

Cryptocurrency market does not require rushing but patience, perseverance and persistence. If you have those qualities, then the rest of the things are at your disposal. You can learn the market over time. 

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