Crypto industry is developing rapidly. We can observe many new projects emerging in the market. They establish new crypto assets, go public, and appear on crypto exchanges. So many people want to become a part of the crypto industry and learn how to work with cryptocurrency – buy and sell with a profit. The first challenge they face is what coins to buy? So before making a decision on a crypto asset, make sure the project is credible and has prospects for growth in the future. For this, analyze the following:
- What stands behind the project? What is the main idea? What issues will it be able to solve? How useful will it be for the industry?
- Who are the founders? What is their background? Are they experienced?
- What affects the rate of an asset? How does it react to the market fluctuations?
Once you decide on what asset you buy, you need a reliable service. Buying crypto is possible on a crypto exchange. Centralized platforms are the best choice because they have a full range of cryptocurrencies and offer the opportunity to buy digital assets with fiat money. This is a big advantage for novice investors. Centralized crypto platforms operate officially and comply with regulations and laws. Moreover, such exchanges are focused on providing maximum safety for users’ funds and often have security funds to compensate for losses in the case of hacker attacks.
How do traders gain profit buying and selling crypto?
In simple words, the essence of trading is to buy a cryptocurrency at a lower price and sell it at a higher rate. However, things are not that easy when it comes to trading in real. Some trading strategies imply acting the opposite way and traders make a profit even amid the market moving downward. To comprehend all the nuances of trading, we recommend learning and practicing trading strategies:
- Day trading. Trading positions are completed within a day. A trader fixes a profit from the price changes within a day. In this strategy, traders learn technical indicators to figure out the points where they close the position.
- Range trading. Traders rely on analysts who set “resistance” and “support” levels for crypto assets.
- Scalping. Based on the analysis of the past trends of the asset and the trade volumes, traders determine the time for opening and closing the deal within a day.
These are only a few strategies for trading. You can practice buying and selling crypto as well as crypto strategies on a demo account of the WhiteBIT exchange.