Checklist For Beginners: How To Start Crypto Trading
The young cryptocurrency market provides many opportunities to earn money, and trading is one of them. The higher risks are, the more profit you can get using high volatility for your own benefit. Even a beginner has a chance to make money on the crypto market. So if you want to try your hand at crypto trading, evaluate your chances with the help of our checklist.
Ready to trade: What do you need to know?
You live in a country where cryptocurrency trading is allowed.
For instance, residents of China are not allowed to trade cryptocurrency at the state level. This may change in the future, but at the beginning of 2019, crypto trading and ICO in China are banned. If you know that the cryptocurrency market regulation is not prohibitive in your country, then start exploring trading platforms available in your region.
You are ready to pay taxes.
Even if the exchange of your choice has no AML-KYC policy implemented and the cryptocurrency market regulation in the country is in its infancy, you have to be ready for changes. Don't think that you'll manage to stay anonymous, and get ready for much less profits than the amount on your exchange account. The tax rate in each country is different and can exceed 40% of profit.
You know what asset you will trade.
The choice of the platform also depends on the set of crypto assets available for trading. The most popular are BTC and ETH. But perhaps you need something less popular or you are interested in a particular coin.
You have a trading strategy or a plan.
Trading at random is not a good idea. So you should decide on a tactic. You may want to take a run at arbitrage trading, where the fee size is especially important when conducting transactions. The lower fees are, the more profit you will get.
The exchange takes care of your safety.
Unfortunately, there are no platforms that can guarantee the 100% safety of your money. But it doesn't mean that you can forget about security. Examine the conditions the exchange offers, find out whether the site is highly protected and uses safe wallets to store users' crypto funds (hot or cold ones).
You are prepared for funds withdrawal.
It's much more profitable and safe to withdraw cryptocurrency to a safe wallet located outside the platform. Decide on the type of cryptocurrency you are going to withdraw and choose an appropriate crypto wallet.
Before you start trading, you must be aware of all risks this activity involves. You may lose your money because of incorrect forecasts or abrupt rate changes. Thus, first of all, you should be ready for unforeseen situations and do everything to minimize losses. Our checklist is designed specifically for this.