Bitcoin is a phrase that you have probably many times so far. It is the most powerful currency that is currently making unbelievable progress. While you are reading this article, the value of one BTC is a bit more than 53 thousand dollars.
Rapid progress has grabbed the attention of many people that are willing to become crypto traders. However, becoming successful is not an easy task. The crypto world, in general, is a complex place that requires hard work, continuous knowledge improvement, and active analyzing and researching.
If you are a complete newbie, we recommend you read this article until the very end. It doesn’t matter if you can afford to invest 100 000 or one million dollars. The chances to succeed without the necessary skills do not exist. Because of that, we prepared some Bitcoin trading tips for newbies you should apply before starting your journey. Let’s find them out together!
Table of Contents
1. Don’t Be Too Confident
We are sure that there is a good reason why you decided to become a Bitcoin trader. You are probably surrounded by people that are good in that industry or you have simply read hundreds of articles and watched millions of videos related to that topic so far. It is great if you analyzed everything, but that doesn’t make you an expert.
All the newbies that are trading for the first time should start small. It would be unfair to say that trading BTC is not risky. However, that risk should not scare you if you start investing small amounts of money. That especially counts for people that don’t have a lot of money.
If you can afford 50 000 dollars to purchase only one BTC, will that be a smart move? No, because you don’t have enough experience to make an income. Instead of that, you can invest 30% of your savings and experiment with things later. That’s the best way to gain the necessary crypto experience.
2. Carefully Select the Crypto Wallet You Will Use
Let’s use real money as an example to make things clear. When you plan to start a business or anything else, you probably won’t open a bank account in the first bank you find. Instead of that, you will look for the one that ensures the safety of your private data and money.
Things are identical when we talk about crypto wallets. You will need to find the one that meets your requirements and expectations. The good news for you is that two options are available. You can choose between Cold and Hot wallets. Hot wallets are the ones that are connected online while cold ones refer to crypto wallets that you can use even offline. Because of that, if you plan to store a bigger amount of BTC, using cold crypto wallets may be a better option.
3. Don’t Underestimate the Importance of Researching
Don’t just research different pieces of information to improve your knowledge; explore the market as well! There is a reason why some people still believe cryptocurrencies are a scam. They all have a turbulent history with many ups and downs. However, those people need to understand that price of BTC depends a lot on different factors such as global events and news, rumors, demand, etc. Currently, a lot of people are willing to invest their money in BTC. That is the reason why its value is growing daily.
The type of research that you need to make is technical. You need to gather all insights that will help you develop an effective trading strategy. Don’t just do what other people are doing. Even if they managed to reach some successes before, that doesn’t mean their strategy is still applicable. As mentioned, things are rapidly changing in this world!
4. Determine the Type of Trader You Want to Become
We will continue in the same manner. All newbies have the chance to choose what type of trading strategy they plan to use. You can be a day trader which means that you can enter and exit the bitcoin market for 24 hours. On the other hand, you can also be an active trader (people in this industry name it scalper). These traders are the most active ones on the market, and they often make a bunch of daily transactions that allow them to generate a small income.
Beginners can also become swing traders, but something like that is not recommendable. That type of trading requires an in-depth analysis of global Bitcoin trading. You probably won’t have enough experience to use the method of that type.
5. Use the Easiest Trading Platform
The trading platforms that people can use are various and they can all be good for different purposes. However, they should all be simple and easy to use. Despite that, they should also give you some assisting tools that will guide you through the entire process. If you are not sure which one to choose, we recommend you check out bit-pal.io. It is a trading platform that notifies you whenever there is an opportunity to make additional profit. Your task will be to decide whether you want to withdraw your money or reinvest it. Doesn’t this seem like an excellent option for people that do not possess the necessary experience? These insights can help you understand how the cryptosystem works!
6. No One Says You Have to Start with Bitcoin
Believe it or not, this is also another tip that beginners should know. Bitcoin is not the only option you have, but it is definitely the most challenging one. Many altcoins function similarly, and they can be an excellent option to improve your knowledge. Their price is a lot lower so you do not have to invest a lot of money. Even if you make a mistake, that won’t cost you a lot.
7. You Can Hold Bitcoins As Well
Let’s imagine you purchase 2 Bitcoins but you are not quite sure what to do with them. You can always hold or “hodl” your cryptos to your wallet and wait for the best moment to sell them.
There are a couple of reasons why doing this can be good. First of all, the short-term volatility won’t influence you at all. Despite that, there is no chance you will deal with overtrading. Keep in mind that the value of BTC is changing almost every hour. Because of that, many beginners will sell it whenever the price goes down or buy it whenever the price goes up. Be sure you won’t manage to make a profit in that way. Instead of that, ensure peace of mind, analyze the changes in the market, and pick the right moment to sell.