The cryptocurrency industry is developing rapidly. We can see that many new projects are emerging on the market. They release new crypto assets, go public and appear on cryptocurrency exchanges. Therefore, many people want to become part of the cryptocurrency industry and learn how to work with cryptocurrencies, to buy and sell them for profit.
The first challenge all novice traders face is picking a cryptocurrency exchange coin. So before deciding on a cryptocurrency, make sure that the project has prospects for future growth. To do this, analyze the following:
- What is the project’s background? What problems can it solve? How useful is it for the industry? Can it be applied in the real world as well?
- Who are the founders of the company, what is their background, and do they have experience working with digital assets?
- What affects the return on investment, and how does it react to market fluctuations?
Once you have decided on an investment, you need a reliable service where you will buy crypto. Buying cryptocurrencies is possible through cryptocurrency exchanges.
How to Succeed in Cryptocurrency Trading?
Simply put, the essence of trading is to buy cryptocurrencies at a low price and sell them at a higher price. However, there are peculiarities; for example, some trading tools imply betting on crypto price drops and buying them at a lower rate in the future.
In order to understand all the nuances of trading, it is advisable to learn and practice trading strategies. Here are some of them:
- Day trading. A strategy in which a trading position is closed in one day. Traders receive profits from price changes in one day.
- Range trading. Traders rely on analysts to determine the resistance and support levels of cryptocurrencies.
- Scalping. Based on an analysis of the asset’s historical trend and trading volume, traders determine when to enter and close trades. One trade may last up to 15 minutes.
- Buy and hold. This strategy means an investor buys crypto assets and does not sell them for a long period of time. That may last for weeks and months.
These are just a few trading strategies. You can practice any of them on the WhiteBIT exchange demo account.