Have you finally decided to dive into the cryptocurrency trading world? It is a very exciting but risky market for contributors: you can easily make a huge profit, but, at the same time, you can easily lose your money. Platinum Q DAO Engineering is here to help those who plan to expand their cryptocurrency trading experience. Our beginners’ guide will show you everything you need to know to make your first steps in the market and trade successfully.
Step 1: Choose a trading platform
A cryptocurrency exchange is what you need. Here you can buy your first coins and then sell or exchange them for other tokens. according to CryptocoinCharts There are 200+ cryptocurrency exchanges worldwide with a total daily volume of $16.87 bn. But how to choose the best one?
It’s very important to find a reliable and safe platform. Platinum Q DAO Engineering recommends you to begin with the most popular and largest players, such as Binance, KuCoin, or Coinbase. However, don’t be afraid to work with less known services that have already proven themselves to be trusted and secure. For example, a fast-growing cryptocurrency exchange BTCNEXT has quickly gained users’ trust. The platform can boast of the most friendly and responsive 24/7 customer service, which is often a weak point of many exchanges operating in the market.
You should carefully study the transaction fees, a range of tokens, and other terms and conditions offered by the exchanges. Make sure that the founders take care of security. Sometimes they offer very favorable trading terms because the platform decided to save on protection measures. Unfortunately, low commissions won’t help you when the cryptocurrency exchange is hacked and your money is lost.
You should also pay attention to the reputation of the trading platform. We strongly recommend you to read news about the exchange and feedback of its customers. Don’t hesitate to ask users at thematic forums or in social media. Don’t forget to check the jurisdiction where the cryptocurrency exchange is registered. Authorities of various countries have a different attitude to digital assets and apply their own regulation methods.
Step 2: Trading on the exchange
To start trading, you should register an account on the cryptocurrency exchange. As a rule, it is a simple procedure: you should just enter your e-mail or phone number, password, and then confirm them. Some services can require you to verify your personal data by providing a scan of your ID or a photo.
After the registration, you should make a deposit. You can do it through the payment systems (in case of fiat money) or by transferring cryptocurrencies to the specified address. When your account has money, you can buy, sell, or exchange the tokens. If you want to withdraw your assets, carefully read the withdrawal terms because the trading platform can require you to pay a fee for this action.
By the way, almost all cryptocurrency exchanges charge transaction fees. Therefore, don’t forget to visit this section on the platform’s website. The exchanges often reduce the fees for the trading volumes, usage of their tokens, and offer other benefits and discounts.
Golden rules you must follow
1. Remember about diversification. It’s too risky to use only one cryptocurrency exchange, as well as to invest in one asset.
2. Have enough savings before trading. Never use all your money to trade cryptocurrencies. Trade the amount you are ready to lose. In this case, you won’t be always concerned about your assets and your trading will be comfortable.
2. Determine a limit for profit and losses. The cryptocurrencies are highly volatile, and their prices will inevitably jump and fall. Set your limits to prevent yourself from making rash decisions when prices are too high or too low.
3. Learn how to use trading tools and instruments. If you want to trade successfully and gain a profit, you should learn to read the charts and apply technical analysis to make a strategy for trading. We prepared a comprehensive guide that will show you how to apply these useful instruments.
4. Follow current news and events. This will help you make a good decision because cryptocurrency prices are affected by news and events taking place in the cryptocurrency market.
5. Don’t be obsessed with your mistakes. Making mistakes in cryptocurrency trading is unavoidable. Just admit it and never think about them too much because it will prevent you from moving further. Figure out what happened, evaluate you mistake, learn from this situation, and move on.
At Platinum Q DAO Engineering, we hope that our guide will help you to start working with the cryptocurrency exchanges and become a successful trader. If you still have any questions about cryptocurrency exchanges or the cases of their usage, don’t hesitate to join our Telegram chats and discuss anything!
Express your ideas about future educational topics or feel free to ask questions in our English, Japanese, or Korean Telegram chats and get regular updates on events and development. You can also join the official Line or official Kakao Talk to ask questions in Japanese and Korean directly to the Platinum Q DAO management team. Every Thursday the team launches streams telling about the updates. All streams are saved on the official YouTube channel. To know more about blockchain technology and how it can change the world please consider taking a full blockchain course at our University of Blockchain and Investing UBAI.