IntroductionIf you're new to crypto and feeling overwhelmed, this blog is for you. When I first started with crypto, there were certain things that I wish I knew, and in this blog, I'm going to reveal what those things are and how they can ultimately help you succeed in your new trading journey.In this blog, you will learn how to buy and sell crypto, how to choose the best coins, understand how much money you should be allocating into each of those coins, and lastly, I'll give you a strategy that will show you exactly when to buy and when to sell different cryptos.
How to Buy and Sell Crypto
The first step in buying and selling crypto is to sign up for a crypto exchange. There are multiple different exchanges you can use, but one safe option is Bit. Once you sign up and deposit money into the exchange, you can proceed to the buying and selling section.There are different ways to buy and sell crypto, one of which is buying spot. Spot trading involves buying the underlying asset without using any form of leverage. To buy spot, you need to select the right coin, set the order price, and determine the amount of capital you want to allocate into the trade. Alternatively, you can use a market order for quick execution and entry into the market.After buying crypto, you can view your assets in the exchange's spot section. If you want to move money from one account to another, you can use the transfer function. It's important to ensure that there is enough capital in the spot account before making a spot buy.
Choosing the Best CoinsWhen it comes to choosing the best coins, you can use platforms like CoinGecko or CoinMarketCap. These platforms provide a list of different coins and their market information. To make informed decisions, you can pivot the chart and evaluate the coin's performance in terms of Bitcoin and Ethereum valuation.By comparing a coin's performance against Bitcoin and Ethereum, you can determine whether it is a good investment. Coins that consistently outperform Bitcoin and Ethereum are considered strong candidates. On the other hand, coins that consistently underperform may not be worth investing in.
Allocating Money into Different CoinsUnderstanding how much money to allocate into different coins is crucial for managing risk in your portfolio. It's recommended to allocate a majority of your portfolio, around 80-90%, into the top 10 coins by market cap. These coins are considered safer investments as they are less likely to experience significant price drops.If you're willing to take more risk, you can allocate a smaller percentage, around 30-40%, into low market cap coins. However, it's important to note that these coins can be highly volatile and may experience large price fluctuations.
A Strategy for Buying and Selling CryptosHaving a strategy in place is essential for successful crypto trading. One easy-to-use strategy involves using TradingView. By setting up the 21-day exponential moving average (EMA) and the 50-day EMA on the daily timeframe, you can identify buy and sell signals.When the price is above the EMAs and they are angled upwards, it is a buy signal. Conversely, when the price is below the EMAs and they start to turn downwards, it is a sell signal. This strategy helps you enter the market during uptrends and exit during downtrends.
ConclusionThese top tips for success in crypto trading can help you navigate the crypto market with confidence. By following these strategies, you can make informed decisions, manage risk, and improve your chances of success.Remember, crypto trading requires patience, research, and continuous learning. By staying up-to-date with market trends and implementing these tips, you can enhance your trading journey and increase your chances of achieving your financial goals.
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