A basic short crypto trading tutorial - Maxitrade

News about cryptocurrencies can be found almost everywhere. The reasons for their popularity are the enormous funds in this field. There are a lot of people that even consider the crypto industry as their primary source of income.

If you are interested in going in for this activity, you are in the right place. We have prepared a short crypto trading tutorial for our readers to estimate their further interest in the topic and understand the most basic details about cryptocurrencies.

What cryptocurrencies should I trade?

At first, it is essential to understand what does the market has to offer. There are more than 1600 cryptocurrencies available! Not all of them are good for investment, but some of them offer good possibilities. These are:

  • Bitcoin;
  • Ethereum;
  • Altcoin;
  • Ripple XRP and others.

All these coins can be traded on Maxitrade. Usually, beginners work with Bitcoin and Ethereum, as these have one of the most active markets. They have also got a high volatility level that allows traders to conduct day trading. This means that everyday profits can be made if you monitor the market regularly and make profits from the smallest price movements.

Rules to remember

If you want to be a successful trader, you need to follow some simple rules. They are not obligatory, but if you do not want to lose your funds, it is better to remember them.

  1. Invest the sum you can afford to lose.
  2. Do not invest all your money only in one coin.
  3. Look after Bitcoin as it usually sets the trends.
  4. Always analyze before investing.
  5. Don’t get too greedy: it is better to have a small profit than a low loss.

These five points are the basic rules for newcomers. They refer to the commodities, bond, stock market as well.

Professional traders can afford risks and always have strategies, but newcomers often tend to make mistakes. That is why it is essential to minimize possible risks.

Where to trade cryptocurrencies?

Maxitrade is a broker that gives you the possibility to trade cryptocurrencies, stocks, bonds, commodities, and forex.

To start trading, you need to register your account. This takes less than a minute. After that, top up your account with the help of your credit card or any other payment method and go on to the trading section.

Here you get all that is required for successful trading: graphics, signals, market hours, and other instruments that are very important in this field. If you have a higher account level, you get a personal analyst and can even create a strategy just for you!

Do I need to create a crypto wallet?

One of the pros of trading is that you do not need to create new wallets. It is only required to top up your account, and from there you decide where the money will be spent.

Creating a crypto wallet is a good idea only if you plan for long-term investments like the “Buy and Hold” strategy. For example, if you bought at least on BTC in 2011, by now, this strategy could bring you $20,000! That is if you sold one coin. But if you trade, then even higher profits can be made.

Basic crypto trading strategies

There are different types of cryptocurrency trading strategies. A successful trader always has a plan. Without it, trading turns into gambling. Two primary strategy ways exist long- and short-term investments.

Long-term investments require a lot of analyzing before doing anything, as you have to keep in mind future events, expert predictions, and the previous coin movements. The most popular way to use this kind of investment is “Buy and Hold.” You buy a coin for the lowest possible price and wait for it to grow as much as possible in the future.

Short-term investments are popular among active traders as this allows them to earn money almost every day. The most popular thing here is Day Trading. Here traders buy/sell positions according to the smallest price movements. Even a few cents of profits are considered.

Crypto trading signals

Trading signals indicate what action should you do: buy, sell, keep the position. Most brokers, such as Maxitrade, offer them for free. To find signals on our platform, you need to open the trading section and press the “Trading signals” button at the bottom of the screen. A list for all positions will be opened. By pressing the “Filter” button, you can choose what kind of signals you want to see.

You can also find trading signals for money from other traders. Some agencies are specified in this field. If you decide to work with them, make sure that you work with professionals and read other traders’ reviews.

How much do crypto traders make?

It is hard to tell, as there is no stable number here. Everything depends on the coin, time, trader experience, leverage, deposit sum, etc. Newcomers who learn about the market ahead often have a 100% profit per month.

By using particular trading bots, it is possible to earn $10-20 daily, but most software is available for money and needs a significant investment sum. It is also essential to understand that not all software can adapt to the market changes on its own and requires the user’s constant monitoring.

Where can I learn more about crypto trading?

If you want to learn more about cryptocurrencies, you can get detailed information in our “Education” section or Maxitrades trading school. There you will find out about everything related to the crypto world and will learn how to earn money in the best way.

We hope that this short crypto trading tutorial was useful to you. If you have any questions left, contact your analyst, or have a look at other educational materials available for free on Maxitrade.

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