Five Tips For Trading Crypto

Want to get involved in trading cryptocurrencies?

This sort of financial investment is on the rise. With more on-ramps to popular cryptocurrencies, more integration of decentralized finance into our economies, and a better common understanding of how digital assets work, many people, including business leaders and individual traders, are getting interested in participating in the blockchain economy in new ways.

If you’re new at the practice of trading cryptocurrencies for fun and profit, here are five quick tips to help you get started!

Choose Your Platform

Part of getting started with trading cryptocurrency is to think about where you’re going to be placing your trades and possibly to participate in a trading course.

As with an online brokerage, the platform that you choose is going to be the environment that you move in from day to day as you make plays on the decentralized finance sector.

You’ll want a platform that has the trading features and capabilities that fit your strategy – for instance, Atani, a premier crypto trading platform, has lots of pairs, fast trades, a secure environment, and lots of liquidity – and everything that you want in a modern crypto trading platform.

Of course, you can use more than one platform, but many traders choose to consolidate all of their activity in a place where they can see everything at a glance, and nothing is siloed away from their investment dashboard. Some of the new exchanges bill themselves as “liquidity aggregators,” where you can get broader access in one location.

Choose Your Assets

With a platform in mind, you’ll also want to think about which digital assets you’ll be investing in. Are you mainly interested in Bitcoin and/or Ethereum? What about all of the various altcoins that compete for attention in the cryptocurrency trading world?

Also, think about how you contrast each of these cryptocurrencies with fiat currencies. How will you be trading Bitcoin or Ethereum against the dollar?

All of this fits into your overall research as you start to contemplate how you will do crypto trading.

Think About Strategy

As you start understanding the cryptocurrencies and fiat currencies you’ll be using to make trades, it’s important to start developing a strategy for how this will work long term. Yes, you can simply double down on a particular coin, hoping that it will skyrocket in the future, but that’s not really the way the sophisticated traders work, and it’s not recommended as a good solid way to go.

One easy strategy is the principle of arbitrage – this holds that when a certain coin goes down against the dollar, you buy it with dollars, and when it rises, you sell it into dollars. But you don’t just do this once – you do it strategically a number of times, in order to profit. This requires a nuanced understanding of the cryptocurrency market, and some good timing, to boot.

Another option is range trading, where you simply buy on a dip and sell at a peak. This in itself is a kind of arbitrage, but it’s a specific longer-term trading strategy to net you incremental gains instead of just trying to hit a jackpot. In some ways, it will be familiar to equities day traders. In other ways, it’s different – you might not be using Bollinger bands and other old relics of the equity age. Still, though, the general principles – profit-taking, for one – tend to hold true.

In addition, you can also be doing strategic thinking about which coins are developing in ways that might drive profit later. For instance, if you believe in the academic community behind Cardano (and the ADA token), you may put a trade on this cryptocurrency hoping that it will become mainstream in the future. The same is true for systems like Polkadot, or altcoins like Litecoin, or any of those innovative blockchains and blockchain tools emerging today.

Think About Smart Contract Handling

As you start trading, think about how smart contracts are going to determine blockchain values.

To date, Ethereum has been the biggest established smart contract handling blockchain, but others are merging. Some people call them “Ethereum killers” for their capacity to handle smart contracts and put data on a blockchain. There’s Shiba Inu and other lesser-known altcoins, but there’s also the Bitcoin SV chain known as “Bitcoin Satoshi’s Vision” that many companies are using as a foundation for their smart contract handling capabilities.

Think About Staking and Farming

Another thing you can do to make money with your cryptocurrency while you’re not trading it involves staking and farming. Here’s you’ll be pledging crypto assets in particular ways to make money – with interest rates that dwarf what you can get with dollars. Pay attention to regulation and relevant KYC/AML laws!

These quick tips will help you to get involved in trading crypto. Good luck!