Effective Trading Methods For Beginners,

Effective Trading Methods For Beginners

Effective Trading Methods For Beginners

The crypto markets are booming once again in this second part of 2021. While some investors are willing to risk it big and buy Dogecoin, others are looking to learn about a more balanced way of making profits from crypto. Trading can be a very lucrative venture if you know what you are doing. However, it’s important that you learn the basics before you start your trading journey. While profitable, trading can be very risky as well. For this reason, we created this short post with some of the most beginner-friendly methods to become a successful trader. We also list some additional tips that should help you reduce the risks of this potentially profitable enterprise.

 

Let’s delve in.

Trading vs investing for beginners

Before we go into more depth about the different methods of trading, it is important to note that regular investing is a much more approachable profit-making method. Strong cryptocurrencies like Bitcoin and Ethereum appreciate in value in the long term, making them great choices for beginners. Additionally, you can use dollar-cost averaging to soften the price curve and reduce your exposure to the volatility of the market. Below is a short overview of how this investment strategy works.

Dollar-cost averaging – the best beginner strategy

Dollar-cost averaging or DCA is an investment method that consists of purchasing a certain cryptocurrency at regular intervals, using a previously fixed amount. This is done regardless of the current price of the currency, as it’s a long-term strategy.

The goal is to slowly accumulate coins to sell them for a much higher price down the road. The length of the strategy can vary, but it’s best employed on a multi-year time span and with fundamentally strong coins such as Ethereum or Bitcoin. With that said, DCA is a long burn, and you won’t see the results before considerable time has passed. For more immediate (and riskier) returns, keep on reading to discover some beginner-friendly trading strategies.

Trading methods for beginners

Below are two methods that are most suitable for beginners, as they don’t require too much technical analysis to be successful.

Swing trading

Swing trading is a mid-term trading strategy that mainly relies on following price trends. The goal is to use the positive and negative market dynamics to make a profit from price fluctuations. The modus operandi, while obvious, is worth mentioning: buy low to sell high. You should be watching the price trends and detecting when a certain cryptocurrency has bottomed out. Then, buy a certain amount and sell it when its price reaches an acceptable profit target.

For this, you can use simple technical analysis like support and resistance, as well as following trend lines and detecting breakouts. Moreover, you can use sentiment analysis to detect when the price of cryptocurrencies might sway one way or the other. LunarCrush is a great tool that will help you determine the social media attention and market sentiment about different coins.

Arbitrage trading

Arbitrage is the process of buying a cryptocurrency on one exchange and selling it on another for a better price. As you might notice, this doesn’t require any type of analysis, just a keen eye to detect price discrepancies between different exchanges.

To be successful at arbitrage, you should make a list of reliable exchanges to work with. You need to be 100% certain that your transactions will be fast enough to take advantage of the price discrepancy. Otherwise, you might miss the window of opportunity and not be able to make any profits.

Additional beginner tips

In addition to these two beginner-friendly methods for trading, here are a few essential tips that should help you stay on the safe side when trading cryptocurrencies.

 

  • Choose a reliable exchange – only work with exchanges you can trust with your money and where you won’t have any trouble making withdrawals.
  • Use stop losses – put a stop loss on every trade. This will allow you to limit the damages if the trade doesn’t go the way you planned.
  • Never invest more than you are prepared to lose – cryptocurrencies are extremely volatile. While they can bring in incredible profits, they can also make you lose your entire capital in minutes. Consequently, never trade with money that you need for daily expenses.
  • Never go all-in on a single cryptocurrency – in other words, you should never put your eggs in one basket. Cryptocurrencies come and go and some projects might crash, leaving you with worthless tokens in your portfolio. Diversify to reduce your exposure to a single asset.

Concluding thoughts

Trading can be very profitable if you take the necessary precautions and learn how to do it properly. To be able to make a regular income from trading, you should first and foremost deepen your technical analysis knowledge.

Being able to read charts will help you be more consistent in your winning trades and you will be able to learn from past mistakes. With all that said, you can start your journey as a DCA investor and slowly shift your attention to trading as you become more comfortable with the ecosystem.

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Bitcoin (BTC) to Energy (NRG) - TOP 5 Anonymous Crypto Converters,

Bitcoin (BTC) to Energy (NRG) – TOP 5 Anonymous Crypto Converters

Bitcoin (BTC) to Energy (NRG) – TOP 5 Anonymous Crypto Converters

When you are looking for a place to exchange BTC to NRG, you have several options. Among them, you can choose whether you want to swap your coins after having registered an account and passed all the verification procedures or you would prefer a completely anonymous procedure. Yes, an opportunity to swap BTC to NRG without KYC exists, there are exchanges that don’t require you to pass any verification procedures if you deal with cryptocurrency only. Here, we have selected the top 5 places where you can swap cryptocurrency without registration and verification.

LetsExchange

Lets exchange is one of the newest platforms. It offers its users a number of advantages, among which is an opportunity to exchange crypto-coins without passing KYC procedures. This instant crypto exchange allows you to buy and sell more than 200 coins with just a couple of clicks.

Along with these benefits, you can count on an easy-to-use interface, complete transparency of every exchange procedure (you can even download a receipt at the end of a transaction), completely automated exchange processes. The platform also guarantees the best rates and an opportunity to choose between a fixed and a floating exchange rate.

Binance

Binance is known as one of the biggest cryptocurrency exchanges in the world. There, you can swap more than 300 currencies, both crypto as well as fiat. Don’t forget though that if you deposit, withdraw, or exchange fiat money, you will be requested to pass a verification procedure. Anonymous exchange transactions are permitted for cryptocurrency only. Also, transactions without KYC are limited to 2 BTC daily.

Changelly

Changelly is one of the major exchanges in the world. This platform doesn’t require KYC. You can even access it via a VPN if you live in a country where cryptocurrencies aren’t supported. The main drawback is the number of coins supported by the platform. Those are LTC, ETH, DASH, BTC, and a couple of other major cryptocurrencies. Thus, if you want to exchange a rarer coin, you might need to look for a different platform.

ByBit

ByBit is one newer platform where you can swap cryptocurrency without verification. Here, BTC, ETH, XRP, and EOS are supported. While the trading volume and execution speed are pretty decent, the limited number of coins might be a serious obstacle for those traders who are looking for an opportunity to exchange rarer coins.

Other than that, ByBit is a recommended exchange. The transaction fees are among the lowest, too, and there are no withdrawal limits.

Bitfinex

Bitfinex has been around for several years, and all this time, it has been one of the top cryptocurrency exchanges due to its convenient conditions for traders, low transaction fees, the absence of registration and verification if you swap crypto only. While the platform has experienced some unpleasant issues, among which is one of the biggest hacks in the crypto-industry, it is still trusted by many customers.

The exchange is known for providing top-level liquidity on the market. Now, it is one of the leading exchanges in the industry.

Top 5 Crypto Performers Overview

Top 5 Crypto Performers Overview: Litecoin, Binance Coin, EOS, Dash, Monero

Top 5 Crypto Performers Overview: Litecoin, Binance Coin, EOS, Dash, Monero

Cryptocurrencies have been very popular recently. With a sudden spark of interest in Bitcoin that took place in the previous couple of months, crypto enthusiasts started exploring alternatives to digital gold. 

Some of the cryptos that have been on many lists of crypto investors are Litecoin, EOS, DASH, Monero, and even Binance Coin. Let’s check out how each of these cryptocurrencies has performed lately. Read on.

Litecoin

Charlie Lee’s brainchild is still considered digital silver, despite many other cryptocurrencies pretending to its throne.

 

During the last couple of weeks, the price ranged from $144 to $185, which is also the 52-week maximum at the moment. Still, LTC failed to meet its all-time high set on December 19, 2017, when a single unit of this crypto was trading at $375.

 

The current circulating supply is more than 66 million LTC, with the maximum supply being 84 million LTC.

 

One of the cryptocurrencies that Litecoin is traded against most often is Bitcoin. That’s why there are so many easy ways to exchange LTC to BTC and vice versa nowadays. 

Binance Coin

The popularity of Binance Coin skyrocketed recently, and the cryptocurrency has shown steady improvement over time.

 

In the last 30 days, the price varied from $35.17 to $59.39, the latter also being the all-time high for the cryptocurrency. If you take a look at the 52-week high/low, you’ll notice that the lowest BNB price was just $6.96 during that period. In other words, those who invested in it while it was still low saw a huge ROI.

 

There are currently 154 million BNB circulating, with the total supply being 170 million BNB.

EOS

Unlike many other cryptocurrencies, EOS didn’t experience a boom lately. Still, its price consistency makes it worth taking into account. The 30-day low was $2.41 and the high was $3.92. The lowest that cryptocurrency got in the past year was $1.46, and the highest was $5.48. Still, that is no match for the all-time high which the cryptocurrency reached on April 29, 2018, when a single EOS was $22.89.

 

However, when you take a look at the trading volume, you’ll notice that crypto is now traded more than ever, meaning it’s still very popular among traders. 

Dash

Dash is another crypto that’s still popular among traders, even though it experienced its heyday in 2018. The trading volume may not be as high compared to other cryptocurrencies, but it still has some room for some short-term profit.

 

The price of Dash fluctuated between $92.63 and $156.67 for the past 30 days. The 52-week low was just $34,91, and the $156.67 is the highest that the cryptocurrency reached during the past year. Still, compared to December 20, 2017, when DASH peaked, that’s still pretty low. On that day, a single unit of Dash was $1,642.22.

Monero

Monero has shown huge potential lately, as it was a part of the second wave of crypto-craze that started in 2020. 

 

Monero’s 30-day low was $122.95 and it peaked at $189.28, which also happened to be the 52-week high. On the other hand, the lowest Monero dropped in the past year was $26.70. The all-time high for this cryptocurrency was $495.84 on January 7, 2018.

Final Thoughts: What Does the Future Bring?

As you can see, the crypto market is currently heavily invested in, especially in Bitcoin. However, other cryptocurrencies followed this trend more or less. It’s difficult to predict where things will go from here, but it’s safe to assume that some cryptos are close to hitting the ceiling.

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Top 5 Crypto Performers Overview: Litecoin, Binance Coin, EOS, Dash, Monero