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Find out how to get started trading cryptocurrency in this step-by-step guide.
There are lots of different ways of making a profit — or losing money — from cryptocurrency. Trading is one of the most popular.
This guide explains where to begin, including how to choose a trading style, how to devise a trading plan, what to look for in a trading platform and things to consider.
How to trade cryptocurrency
There are five steps to getting started:
- Do your research and work out whether cryptocurrency trading is right for you.
- Decide whether you want to do long term or short term trading.
- Choose the trading method that’s right for you.
- Learn how to place trades and read charts.
- Choose an exchange and start trading.
This guide walks you through each of these steps.
The different types of cryptocurrency trading
The first step is to decide between long-term or short-term cryptocurrency trading. Both are very different.
Long-term traders buy and hold cryptocurrencies over a long period of weeks, months or even years, with the intention of selling at a profit or using it later.
If you believe the value of a cryptocurrency will grow in the long run, and don’t want the stress of actively trading, then this might be your style, and a good first step may be learning how to safely buy and hold cryptocurrency.
Short-term trading is about taking advantage of short term cryptocurrency price swings by creating and executing a trading strategy.
It’s more active, stressful and risky than long-term trading, but it also offers faster and larger potential returns for those who do it right, and lets you profit from cryptocurrency prices dropping as well as rising.
If this is what you’re looking for, you can either read on for a beginner’s guide or compare cryptocurrency trading platforms to get started.
Choose a trading method
The second step is choosing a trading method. This is important, because all of them are quite different and require different techniques. In some cases, the same cryptocurrency exchange will offer several different types of trading.
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