In today’s world, people are making a lot of money by trading. Those who started with no experience or expertise in trading are now earning millions. No doubt, it is a great way to earn money while sitting in the comfort of your home. You can earn a handsome amount, but only if you do trading wisely.

As a beginner in trading, people do not know a lot of things. The field of crypto is very vast, and there are many things to learn before you start trading.

Here is a simple and easy guide for you on how to start crypto trading as a beginner:

1.   Choose a Crypto Exchange

To start crypto trading, the first thing you need to do is choose a crypto exchange. You need a crypto exchange to trade, buy and sell different cryptocurrencies.

Some of the most popular and widely used crypto exchanges are:

• Gemini
• Coinbase
• Kraken
• eToro

Research properly and choose wisely. A right selection of crypto exchange is necessary to get profitable trading results. Before starting trading with any cryptocurrency exchange, make sure that you have sufficient knowledge of that exchange platform, its terms & conditions, and how your crypto assets will be stored and protected by that exchange. Learn how to use that particular crypto exchange.

After you have selected a crypto exchange, create your account with it. Make a fiat deposit so that you can start trading.

2.   Choose Cryptocurrency

Once you have completed the fiat depositing process, next you have to choose the cryptocurrency which you will use for trading. For beginners, it is usually suggested to select Bitcoin or Ethereum.

Bitcoin and Ethereum are widely accepted and are less volatile than other cryptocurrencies. You can later choose other cryptocurrencies once you become an experienced trader.  

1.   Create a Crypto Wallet

You need to create a crypto wallet for trading. Crypto wallets are needed to store crypto coins and manage transactions in your account. As a beginner, you should choose hot wallets as they are free and easy to use.

Some of the widely used hot wallets are:

• Coinbase Wallet
• Trut Wallet
• MetaMask
• Exodus
• Kraken Wallet

2.   Make Your First Purchase

Now your crypto wallet is ready,  you can make your first purchase. For beginners, it is advised to first purchase a fraction of a large coin as it helps you better understand the investment process. When your transaction is complete, your coins will appear in your crypto wallet.

3.   Set Your Crypto Strategy

After you have made your first purchase, now it’s time to choose a crypto trading strategy.  A crypto strategy is needed to invest wisely in the future.

Some of the commonly adopted crypto strategies are:

• HodLing
• Day Trading
• Swing Trading
• Dollar Cost Averaging

Choose the right crypto strategy according to your situation. As a beginner, you can go with the Dollar Cost Averaging strategy as it works well in volatile markets like crypto.

Tips for Beginner Crypto Traders

All the process is completed. You have made your first investment; now you are good to go in the crypto trading world. The dynamic world of crypto has a lot of things for beginners to learn to achieve success.

Here are some of the tips for beginner traders:

• When you have decided to start crypto trading, first understand the crypto in detail, how it works, different types of crypto currencies, what are different crypto strategies, what the rules are, pros & cons etc.
• There are different crypto-related courses available online. Register yourself for such courses to understand crypto in depth and with more clarity.
• Stay informed with current trends. You should know when to stop trading and when it’s the best time to invest.
• Study and understand the crypto market well. Learn how the crypto market works, and what are the new rules and regulations. 
• Stick to one crypto strategy in the beginning. When you start getting more profit, you can adapt other strategies as well.

Tarde with strategy and not with emotions. Avoid panic buying/selling and impulsive investment. Instead, see in which direction the market is going and then make investment decisions.

• In the beginning, do not invest more; only make small investments. Once you have gained more knowledge and experience, you can start investing large amounts.
• In crypto, every day there is a new opportunity for traders, but not every opportunity is for you. Don’t be in a hurry to invest right away. Be patient, research it and then wait for the right time to make an investment.
• Know the ways of risk management. When the crypto market is going down and how can you prevent yourself from loss.
• Always use two-factor authentication (2FA) when creating an account with any crypto exchange. 2FA adds an extra layer of security to your account and prevents hacking.
• Choose a reputable cryptocurrency exchange. They help you create better and secure trading accounts.
• Do not share your crypto wallet’s private key with anyone. If someone gets your private key, they can transfer all your money to their account, and there is no way to get it back.
• Be aware of scams. Do not share your login credentials with anyone. Most scammers pretend to be from your crypto exchange platform and ask you to share login details through messages, emails, etc. Always report such messages.

Crypto world is an exciting venture, the same as a roller coaster ride. Sometimes it is very high and sometimes very low. To keep going in this volatile market, you have to make wise decisions during these highs and lows. As a beginner, it can be difficult for you to make wise decisions, but you can do it easily if you have gained complete knowledge of crypto before starting trading.