digital currency process has recently become the talk of the hour and every hour. During the past few years, we have heard about many people who have become millionaires thanks to them.
Trading or investing in digital currencies is one of the most popular and profitable ways to invest money online, especially in America and Europe.
This is what prompted us today to present an article about digital currency trading, and how to get started with simple and clear, practical steps.
And you will be able to easily begin your journey of making money from trading, as we have summarized everything that is required of you to do it in five easy and straightforward stages, and you only need to follow them in order to start profiting from digital currency trading.
But let us first get to know the meaning of digital currency trading, its advantages, disadvantages, and types, in order to make the picture clear to you from all sides.
Definition of digital currency trading
Cryptocurrency digital currencies, led by Bitcoin an alternative to the regular currencies that we deal with, such as the US dollar or the euro.
These currencies are based on cryptographic technology, and gain their value from the supply and demand market.
For this reason, its prices are very variable, for example, the price of bitcoin today could be 70 thousand US dollars, and after hours it will be only 55 thousand - that is, it lost 15 thousand dollars of its value in a few hours, which is what specialists know and call it volatility.
Here is an illustration of the fluctuation of the Bitcoin price over five days in mid-August 2022:
The value of these digital currencies is that they are decentralized, meaning that they are not supervised by a government, bank, or even an institution, which gives the user complete freedom and absolute privacy to carry out his financial transactions without fear of such surveillance. And without paying exorbitant sums to banks or financial intermediaries.
But there is a downside, there is no protection or compensation of any kind as you make a mistake or get scammed or the like.
Today, there are thousands of digital currencies that are used around the world, including Bitcoin and Ether. Trading digital currencies require a lot of skills, time, and effort, to get you a lot of profits in a short time.
And we are not talking about gambling or betting, - as you will soon learn - but rather that the work is based on a lot of monitoring, follow-up, study, market analysis, and follow-up of global events. This is similar to what traders do in the stock exchange, where they study the stocks and choose the promising ones, and pump their money into them to multiply.
Trading digital currencies is very different from investing, in this case, you do not really care about the current market movement, but rather look at the long-term value of the currency after many years, but trading is in which you buy and sell digital currencies within short periods that may reach a few minutes.
What are the positives and negatives of trading digital currencies
Trading is a good option to profit from the Internet, but like anything it has advantages and disadvantages:
First, the advantages of trading digital currencies
1. Big Profits: Trading digital currencies has brought you a lot of profits compared to any other field. With effort and perseverance, you will double your capital over and over and within a year or a year and a few months only. But it requires experience and learning before you do this.
2. You do not need a lot of money to start: you can trade digital currencies with any amount you have, to buy parts of the digital currency that you use. The more capital you speculate with, the greater your profits will be
3. There are many experts and learning resources online:
Where there are many YouTube channels and forums that explain all the details about digital currency trading, and there are dozens of experts on Twitter, Reddit, and Pinterest, who analyze every event and explain to the less experienced beginners and develop them.
Secondly, the disadvantages of digital currency trading
1. The digital currency market is volatile: which makes its prices change very quickly, as it may double in less than an hour, and it may lose a quarter of its value in seconds. This puts pressure on traders when analyzing the markets and predicting what will happen, otherwise, they will lose a lot of their money.
Traders in digital currencies must also control their feelings and control their behavior so that they do not make mistakes that cause them to lose.
2. The need for large capital in order to obtain a large profit, so you can start with any amount, and you will find your way among the adults in this field, but you must also pay attention that in order to achieve large and satisfactory profits, you must have a sufficient amount of funds.
If you have 10 dollars, and you traded correctly and doubled your money, you will have 20 dollars, but if your investment was 70 thousand dollars, you will get 140 thousand dollars in a short period.
3. There are problems of protection, hacking and human errors: digital currencies are decentralized and cannot be detected or manipulated, but it is possible that the digital currency trading platform that you use deceives you, or someone deceives you and steals your coins. Or you make a mistake when transferring your digital currencies to your wallet after the trading process And your money will go irrevocably to someone in India or Russia.
Different types of cryptocurrency trading
There are several types of strategies for cryptocurrency trading, each of which has its pros and cons, and the preferred method differs from one trader to another. All of these methods depend on the principle of buying digital currencies at a low price and selling them at the highest price: “Buy Low, Sell High
”.
The difference in these types and methods of trading lies only in the time periods that are between the buying and selling process, or the way in which these currencies are bought and sold.
The most important and famous types in the world of digital currency trading are:
1. Day Trading
which is the most famous in the world of digital currency trading, and many traders prefer it over others, and it enables them to obtain quick profits through buying and selling operations that take place during the hours of the day, and The trader ends all his dealings at the end of the day.
In this method, you need to be vigilant and follow the statistics of the trading platform that you use. You have to predict the change in price movement before it happens, and this involves a lot of risks. You buy during periods when the price of currencies decreases and sell when prices rise, and in the end, you get gains Quick or quick losses too.
2. Scalping
Quick speculation is somewhat close to day trading, but it is much faster here. We are talking about minutes and sometimes seconds. In this case, the profits are few but guaranteed and with the least possible risk. Thanks to the speed and repetition of the process, it will allow you to earn a good amount of money that traders usually make. In this way, I make dozens or even hundreds of quick trading operations during day
3. Swing Trading
The last type is swing trading, which is a slightly slow strategy in making buying and selling operations.
You determine the starting point of a decline or rise in the prices of the digital currency, and through your experience, you will know that a currency will increase in price so that you can buy it while it is at a low price, and you will wait for the price increase wave to end until you sell it, and get profits.
The swing trading process takes weeks or months, and you do not need to constantly monitor the analysis and statistics at all hours of the day, and it is the best and most suitable for beginners who do not have sufficient experience and knowledge, so you should definitely start with it.
Here we come to the most important part of our article, which you have been waiting for from the beginning. I know that you are eager for this part, so let's start immediately.
5 practical steps to start trading digital currencies.
First step: learning the basics about digital currencies and trading
. Its terminology and ideas are a bit difficult at first, but with a little time you will start to understand these terms, and you will be very curious to know more and more about the subject.
There are a lot of online resources and many free courses and training courses. YouTube is full of many training and training seminars in this field, or paid ones that you can buy and benefit from.
According to my opinion, do not pay any money before understanding digital currencies well, how to trade digital currencies, the difference between investing and trading in digital currencies, and the different types of platforms that you can trade through. The principles of technical or fundamental analysis methods, and the most popular trading strategies.
In our blog "YASSMIN-NET we will start writing several articles about digital currencies, blockchain technology, trading, and other topics that will benefit you a lot in your learning journey. You just have to follow us.
Of course, this is not all, as the trading world is very wide, but this will be a good start for you. In order to succeed in trading digital currencies and become one of the rich
Step Two: Choose the right trading platform for you
There are a lot of digital currency trading platforms, each with many advantages and disadvantages, and you will find a great disagreement among the fans of these platforms, and here it is your turn to choose the best platform for currency trading digital. It is not possible to say that there is a platform that is absolutely the best, so take enough time to study and compare those platforms in order to choose the best point to start trading from.
What factors can be used to compare or prefer one platform over another? To answer this question, follow with me
digital currencies, and almost all platforms support the two most important currencies, Bitcoin and Ether (which is part of the Ethereum system), and the role of the platform is to provide many digital currencies for you to diversify your use. Your fruits and your trading support your trading strategy.
b) Years of presence in the market
One of the most important factors that I consider when choosing a trading platform is the reputation of the platform and its presence in the market. The more reliable and well-known the platform is, the better.
c) Platform Costs,
Of course, cryptocurrency trading platforms are for-profit companies, and they impose many costs and commissions on traders. And before dealing with any platform, you must know well the system of its costs, as each trading platform has its own system, some of which impose fixed costs, and some of them set percentages.
d) Methods of payment and receipt of profits
The method of payment and receipt of profits is very important in choosing the platform. If you deal with PayPal, Payoneer, or directly from your credit card, make sure that this option is available first before you start dealing with it.
e) Trader reviews Trader
ratings and reviews are one of the best tools that will help you choose the best cryptocurrency trading platform for you, so do not neglect to read these reviews carefully.
The third step: Create your account on the platform
This step is very easy, all you have to do now is to create an account for yourself on the platform and follow the registration procedures using your email, phone number, and some other personal data. This process is often free in
order to provide An additional layer of security for your account. You will need to activate 2FA or 2-factor authentication, and if you encounter any problems, you will find many videos and articles explaining to you how to register, or you can even contact the customer service of the platform.
Step Four: Choosing your wallet
This is a very important step in order to keep your coins away from the risk of hacking and theft, so you should Deposit those currencies in an external wallet, it is dangerous to keep your currencies on the trading platform, whatever they are,
Your digital currency wallet is where you keep your digital currencies, such as bitcoin, just like your wallet, whether you carry it or use an electronic wallet.
There are two types of these wallets:
1. Hot Wallets: They are wallets connected to the Internet, which are usually called software wallets.
Mobile wallets can be accessed through mobile phones, browsers, or even desktops, and they are convenient and easy to use, but they are not very secure.
2. Cold Wallets: These are offline wallets, which are a bit slower and more difficult to handle, but are more secure than hot wallets.
These wallets contain two types, either hardware wallets or paper wallets.
I recommend hard wallets as they are the most secure.
To make the right and appropriate choice for you, you need to do some research before choosing the wallet that you want.
And if you want us to write a dedicated article on the best digital wallets, just mention this in the comments on the article.
Step 5: Follow a strategy or plan for trading your cryptocurrency.
We have now come to the most important point. After completing the previous steps, and buying your digital currencies, you have the last and most important thing left, which is to trade. But not randomly. If you try to do it without a plan, you will lose your money and fail.
You have to know what to do exactly, and through my experience and my knowledge that what I say is self-evident, but many beginners do not know how things work at the beginning of their careers.
First, you have to choose the method through which you trade, yes, as you know there are many types or methods of trading, of which we explained the most important a little while ago.
Secondly, you will have to choose the trading strategy that you will follow, as trading has many strategies. Determining the appropriate strategy for you depends on many factors, the most important of which are:
Your level of experience and knowledge about trading.
Your personality and the time you can dedicate to trading.
The loss you can afford and your ability to risk.
You can choose the best strategy that suits you, with some adjustments according to your circumstances, financial capabilities, and experience. You can also follow the strategies of large digital currency traders on social media or YouTube or through training courses, or even through articles and explanations.
Then you set the trading plan that you will follow, without forgetting a risk management plan with the need to constantly develop your strategy and plan. And you have to be careful to leave your feelings outside while you are trading, the important thing here is to continue trading,
and perhaps we can offer you an article that collects the most important of these strategies, just do Tell us in the comments and we will prepare it for you.
Conclusion
we provided you with the most important information about digital currency trading, starting with the concept of trading, the advantages and disadvantages of digital currency trading, and the most important trading methods, and we concluded the article with practical steps to start actually trading digital currencies.
Please let us know if you have any comments or inquiries about anything related to digital currency trading and profit.
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