Cryptocurrency trading is basically buying and selling cryptocurrencies with the goal of making a handsome profit. It involves a lot of research, analysis, and patience, but the results may be great. Traders use various tools, sources, and platforms to achieve the best results. However, you always need to do your own research before investing.
Beginners often experience difficulties in mastering trading, and we have prepared this guide to help you with that. We took a popular crypto exchange called WhiteBIT as an example to see how to trade different pairs from BTC USDT to MATIC USDT.
Now before we begin you should know that it is important to choose a correct trading strategy, which depends on many factors. An effective strategy will keep you from impulsive decisions that can cause you serious losses.
Beginners definitely need to have an idea about the work of the crypto market to be able to get the maximum profit. To do this, you need to carefully study the main types of strategies: day trading, futures trading, high-frequency trading (HFT), scalping, etc., and understand their pros and cons. With some experience and knowledge, investors can develop their own trading strategy and increase their profit.
How to Trade Cryptocurrency?
In short, crypto trading has both difficult and easy sides. You need to choose the right coin (based on many factors), an exchange, and pick your strategy. However, when you understand how it works, it gets a lot easier.
There are many different approaches to trading cryptocurrencies. The first thing you need is adequate knowledge of the subject. It is also important to be aware of the risks involved and the laws that may apply depending on the jurisdiction.
This material will help you take the first necessary steps in the world of crypto trading and avoid the most common mistakes of beginners.
1. Sign up on WhiteBIT Cryptocurrency Exchange
The registration process on WhiteBIT is user-friendly and takes no more than a few minutes:
Step1: Fill out your email address and create a password.
Step2: Agree to the terms of use of WhiteBIT and click the “Continue” button.
Step 3: Enter the code from your email to confirm the registration.
In order to increase the security level of your account, select a strong password and activate the provided protection tools: 2FA and Anti-Phishing. Also be aware that Verification on the WhiteBIT exchange is mandatory. Without verification, you can use free demo tokens to learn how to trade.
2. Fund your Account
To start trading, you need to have funds on your balance. You can make a deposit to your account in the form of a cryptocurrency or state currency (fiat).
Here’s how you do it on WhiteBIT:
- Go to the Balances tab and select “Main”, then click “Deposit” next to the desired digital asset;
- For fiat: choose a payment system and make a deposit through the payment system website;
- For cryptocurrency: select a network and use its address on the sender page.
The minimum deposit amount depends on the chosen currency. There’s a deposit fee, the exact amount of which you can find on the Fees page or directly on the digital asset replenishment page.
3. Pick Crypto to Invest In
Obviously, choosing a cryptocurrency to purchase is one of the most important steps. WhiteBIT offers a wide variety of cryptocurrencies, ranging from the most famous ones to new projects that are just starting to develop.
Choosing a digital asset for your portfolio should be your personal decision. At the same time, the high volatility of the assets is also worth considering: the price can change in any direction in a very short period of time.
In order to make the right choice and receive income, it is necessary to conduct a careful analysis and pay attention to a number of factors:
- Developers’ experience, success in work on previous projects;
- Innovations and introduction of new technologies;
- The presence of an active community that takes part in the development of the project;
- Market capitalization and trading volume;
- Plans and goals of the project, etc.
4. Start trading on WhiteBIT
In order to start trading on WhiteBIT, you need to place a buy order. There are several types of them:
- Market order lets you purchase an asset immediately and at the current market price.
- Limit order lets you buy an asset at a fixed price as soon as a response order to sell at the specified price appears.
- Stop market lets you purchase an asset when a predetermined price is reached.
- Stop limit gets activated when the stop price is reached and then gets executed like a normal Limit order.
- OCO (One Cancels The Other) allows you to place two orders at the same time. It combines a limit order and a stop-limit order, with a condition that only one of them is executed.
Novice traders usually use the Basic trading service with all the necessary functionality. It is very simple on WhiteBIT:
- Transfer funds from the “Main” to the “Trade” balance;
- Find the required trading pair in the “Markets” window;
- Choose the type of buy order that suits your strategy;
- Fill in the required fields and confirm the purchase by clicking “Buy”;
- Track the execution of the placed order on the same page or in the “Active Orders” tab.
As you can see, cryptocurrency trading is not a difficult process if you pay enough attention to learning the basics. At the same time, it is worth considering that the degree of risk is quite high, and there is no place for rash decisions. If you want to make money on trading, you should take into account that any decision to buy or sell cryptocurrency requires some preparation and analysis.
This is a sponsored post and The Crypto Times has not reviewed or is affiliated with WhiteBIT. Before you invest, do your own research and if required take advice from a licensed financial advisor as well.
Also Read: 10 Best Crypto Trading Strategies
