Getting started with trading of crypto assets.
There is a lot of information out there about crypto assets and how to trade them. We have witnessed a lot of FUD (Fear, Uncertainty and Doubt) in the crypto space enough to stop prospective traders from placing his/her first trade, it is only right to get facts right and understand how it works. Trading crypto assets is not gambling as it is a skill to develop over time, far from a get rich quick scheme. You as a trader can manage to get it right by paying attention to a few things while doing lots of research.
Getting started with crypto trading is not as hard as it has been portrayed by most people that came in to make quick money but got thwarted. It is advisable to understand what it is you are planning to do and what you intend to get from it, it makes the crypto trading journey easier. The first thing to do is to find a reputable trading platform, where you can get to trade a wide range of crypto assets with the right liquidity. An example of such is OKX.
OKX, a world leading cryptocurrency exchange, has a reputation for having volatility and also cheap trading fees. There is an academy on the trading platform where a novice can get information about blockchain and cryptocurrency, and also tips as to how to trade. Getting started on OKX is just a click away, and funding is very easy. There is an option for P2P in countries like Nigeria whose government does not allow its citizens to buy crypto from banks.
After getting an account and funding it, there are 5 things to bear in mind when getting started.
1. Make proper research on the coin you intend to invest/trade:
There has to be proper analysis on a coin to be traded, both Fundamental analysis and Technical analysis. Having to know more about the coin and news surrounding it is equally as important as reading charts. There is information out there that will make a difference before placing the order, it is to be found.
2. Do not make decisions based on past:
Trends are real and sometimes repeat themselves, but you should not be carried away with this. The way trading works is to predict the future movement in price of a crypto asset, more of the future than the past. You have to be proactive and be forward thinking rather than paying all attention to the past.
3. Pay attention to volatility:
The main aim is to "buy low and sell high", volatility has a way of shaking out traders who do not trust the analysis they made themselves. They tend to "buy high and sell low" simply because they are scared and somewhat inexperienced. It requires having a strong fundamental analysis.
4. Risk Management:
Knowing when to opt out of a trade not going according to plan is key most times. There should be a percentage at which a running trade should be closed for every trader. This prevents liquidation.
For example, a trader might only be willing to risk 25% of the portfolio on a trade. The trade is closed after 25% loss and waits for a better entry before going into the trade again.
5. Only invest what you can afford to lose:
This is a golden rule! Do not trade or invest money you can not afford to part ways with.
After following these 5 rules, your trading journey will start on a good note. There are lots of resources on OKX academy that will boost your trading skills, get started on OKX today.
A world-leading cryptocurrency spot and derivatives exchange, OKX offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks.
We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.
Telegram group: https://t.me/OKXAfrica