Rapidly developing digitalization is also affecting the investment world, as evidenced by the skyrocketing price of crypto. Now crypto trading is one of the investment instruments that is in great demand because it can provide big profits.Traders who transact bitcoin, ethereum, and other cryptocurrencies are increasing day by day.
Along with the high profits that can be obtained, the risk of crypto trading is no less big, you know. Even so, it doesn’t discourage many people from getting into it.
If you are also tempted to do crypto trading too, you should first understand the concept of buying and selling digital currency to avoid the risk of sizable losses.
What is Crypto Trading?
You must have often heard the term stock trading or buying and selling of shares right? Well, crypto trading has the same meaning, it’s just that the object of the transaction is cryptocurrency.
Cryptocurrency itself emerged because of the blockchain and digital currency market. Several types of well-known cryptocurrencies are bitcoin, ethereum, and doge whose values reach tens or even hundreds of millions of rupiah.
Traders will trade their crypto assets. But keep in mind that crypto has a very high level of volatility and the market is not for 24 hours straight. This is different from the stock market which is only open during business hours and closes on certain days.
This means that the value of crypto assets can change at any time regardless of time and hour. If you are involved in the international of crypto trading, then you have to monitor price fluctuations frequently, even in the early hours of the morning.
How to Trade Crypto Trading
Trading crypto is actually not difficult, but requires the right strategy to avoid losses. Here’s how to start trading cryptocurrencies.
- Select the style of cryptocurrencyBefore trading crypto, you must understand the types of cryptocurrencies that are sold on the digital money market. The most famous are bitcoin, ethereum and doge. But there are still many crypto currencies with lower values such as ripple, tether, monero, and so on.Do a detailed analysis before you decide what cryptocurrency you will buy. See the trend of rising and falling prices for the last month to the last year. If you are still inexperienced or afraid of being wrong, you can ask a broker for help.
- Top-up funds on crypto accountsAfter investing and trading crypto has become very disukai banyak orang even among Indonesian people, buying crypto currency is now much easier. You can buy it through an online investment application that can be downloaded for free.Then, register and verify identity. Usually you will be asked to upload a photo of your KTP and selfie while holding the identity card. You can only top up after your akun has been approved by the application.Starting crypto trading can be said to be very affordable, because the minimum capital needed is only IDR 10,000. You can top-up according to the budget you have.
- Buy cryptocurrenciesThe next step you have to do is buy the cryptocurrency that you will sell later. Unlike stocks, the crypto market is active 24/7. So you have to be really observant in choosing the right moment, when you have to buy cryptocurrency.Crypto trading is a high level of speculation, so you must fully understand the risks before deciding to get involved deeper. If you are still a beginner, start with as little nominal capital as possible.
- Make buying and selling transactionsOnce you own a cryptocurrency, you should check its price developments frequently. Apart from monitoring directly, you can also read the latest news about the cryptocurrency that you buy.
The ups and downs of crypto prices spread very quickly, including on social media. When the value goes up, don’t hesitate to sell it. In contrast to investing, trading requires a short time. That means, you don’t buy these assets to keep them for a long time.
Crypto Trading Tips For Beginners
Crypto trading is not an easy matter, especially for beginners. The important tips below might help those of you who are not familiar with buying and selling cryptocurrencies.
- Start with small capitalYou may be tempted by the multiple profits that other traders get. But as a beginner, don’t take too big a risk by investing a large amount of capital. Start with a small nominal, so that the risk of loss that must be borne is also small.
- Be prepared to take risksThe value of cryptocurrencies can change drastically at any time. Because this digital market is open continuously for 24 hours, the value of the assets you have can fall freely while you are sleeping. This is a risk that you must be prepared to face.
- Don’t be surprised if you experience a lossin just a few seconds. That is why experience plus good instincts are needed in crypto trading, because you have to be brave in price speculation.
- Don’t give up easily when the price dropsWhen the value of the assets you have is dropping, don’t immediately give up plus get discouraged. Be patient plus wait until the value goes up, then sell immediately if you are afraid of losing money. The key to success in crypto trading is knowing when to buy plus sell assets.
That’s all about crypto trading which is currently a trend in the investment world. Whatever investment you want to make, be it long term or short term, you must first understand the advantages, disadvantages, plus risks. Remember that there is one definite law that applies in the investment world: high risk, high return. Happy investing!