As a beginner to cryptocurrency trading, it is important to educate yourself.
This article will outline how to trade cryptocurrency in 2022 as a beginner.
Follow these simple steps;
The first thing that you need to do is find a broker and register your trading account.
How to trade cryptocurrency in 2022 as a beginner
1. Register your trading account
You can start with a demo account to practice and then go live with a real account later or apply for a live trading account in the first instance.
Or you can skip the demo and start on a real account with a relatively small amount of money.
Registering a trading account is quick and easy and the trading conditions on the VIP Black account are very competitive.
2. Download the trading platform
Once you have created your trading account, head over to the download centre to download the trading platform.
Select from MT4 or MT5, depending on what you chose in the previous steps.
This is what you will log in to, to do your cryptocurrency trading.
You can download the platform to your PC or smartphone.
3. Fund your trading account
When you are ready, you can fund your trading account to start trading.
This can be done instantly with a credit or debit card. Alternatively, if you already have some cryptocurrency, you can deposit that. Check what methods are available from the deposit page in your secure client portal.
To avoid delays, ensure that you fund your trading account from a funding source in your name.
Once you have done that, the next step is to transfer your funds to the trading platform.
4. Transfer your funds to the trading platform
Go to manage funds and transfer your funds from your TIO Markets wallet to the trading account created in the previous step.
When you log in to the trading platform, you should notice your deposit there and now you can start trading cryptocurrency.
5. Identify a trading opportunity
It all begins with identifying an opportunity and there are many ways that you can do that.
A common approach to cryptocurrency trading is to trade with the price trend. You can view the cryptocurrency markets over different trading time frames to identify price trends to trade.
You can also identify price areas of interest on the chart to execute trade at. Support and resistance areas on the chart can help you identify potential turning points in the market.
You can also use chart or candlestick patterns, like the head and shoulders pattern or double tops and bottoms as signals for potential turning points in the price.
Paying close attention to news announcements about a cryptocurrency can also help you identify trading opportunities. Positive news can have a positive impact on cryptocurrency prices. While negative news can have negative impacts on the price.
6. Determine the risk and the potential reward
Before you execute your trade, it is a good idea to know how much you are prepared to risk and what you could potentially gain.
You can do this by having an exit plan for both scenarios.
An ideal scenario would be to enter a trade that has a high probability of success. Plus, have a low risk of loss and a higher potential reward. You might want to reconsider those trades where the risk to reward is not favourable enough for you.
You can place a stop loss and take profit order with every trade.
7. Execute your deal through the trading platform
Now that you know when you will get in and out of the market, it is time to decide how much cryptocurrency you going to buy or sell.
The minimum deal size on the trading platform is 0.01 lots or 1% of a Bitcoin or 1 Ethereum.
Now you are ready to pull the trigger and there are several ways you can do that.
You can set a pending order to execute at a predefined price, or you can execute at the current market price. In case of the former, your deal will get triggered when the price reaches your predetermined price. For the latter, your deal will open immediately.
Once you have set the take profit and stop loss orders too, you can let the trade run its course or close it whenever you like.
8. Monitor and manage your trade
One of the benefits of cryptocurrency trading is that you can buy or sell at practically any time. But as the price action unfolds, there might be a cause to make adjustments to your deals.
This is when you might want to modify your stop loss and take profit orders or even close the deal entirely.
You should plan your trade and then trade your plan.
Don’t let your emotions cloud your judgement or motivate you towards doing something that could potentially sabotage your result.
Fear and greed are powerful motivators and experienced traders understand this. A set and forget approach to your trading might help.
9. Learn from the outcome and make improvements
You can’t control what the cryptocurrency market is going to do next.
But you can control what you do and when you do it.
You should review your performance periodically and make improvements to become a better trader.
It is important to educate yourself to make better informed trading decisions and find a trading style that suits you.
Open your trading account with a reputable broker.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.