Trading cryptocurrencies no doubt is one of the most profitable venture anyone can engage in especially if he/she knows what coin to buy and the current market analysis. This post aim to highlight the major things to consider or know before dabbling into cryptocurrency trading.
A lot of people taught that cryptocurrency trading has to do with starting with big money but they don't know that every skyscraper started with a foundation. The same is applicable to cryptocurrency trading. Several people have the mentality that when it comes to cryptocurrency you must buy 1 Bitcoin or 1 Ethereum before you can start trading and making profit. Meanwhile, one can actually buy few unit of Bitcoin and Ethereum with small amount of money and still made the same amount or percentage (Return On Investment) you'll have made if one had bought one(1) Bitcoin or one (1) Ethereum at a given time.
Study the white paper
Every coin has a white paper, this white paper contain the mission, objectives and uses of the coin. This help the intended investor to be able to objectively assess the viability of the coin before investing in it. Therefore before starting cryptocurrency trading it is necessary to study the type of coin one want to invest into through their white paper. This white paper function as the manual of every coin and it's provide the most detailed evidence or information about the coin.
It is necessary to carry out market analysis before one invest into any coin. Being able to interpret the market will help the investor to know how much he or she should invest on the coin and when such investment should be made. It can also help the investor to assess the coin performance in the market in relation to the white paper. This will give a broader view in term of taking investment decisions.
Trade with residual money
Residual money in this context means tge money one is comfortable to lose. It is no longer news that cryptocurrency investment are categorised as a very volatile form of investment. Hence, it is advisable to trade with money one is comfortable lose. This will help guide against frustration, heart attack etc that might result from sudden lose of investment fund.
In Conclusion, cryptocurrency trading is very profitable if takes his or her time to understand the basic concepts about the coin through it's white paper, carryout appropriate market analysis, trade with the money he or she is comfortable to loss and lastly start trading with the very little finance available and grow in the business.
Thank you for reading my write-up on cryptocurrency trading. Please feel free to add other vital points to consider before starting cryptocurrency trading.