Unlike the jobs in blockchain, for which you need high technical knowledge, starting a career as a crypto trader is pretty simple. However, you would still need to learn a lot about cryptocurrency and trading techniques. The difference between getting a job in a blockchain firm and making money by crypto trading is that in blockchain, you must be from a technical background and know computer programming but in the crypto trading business, all you need is some knowledge of trading and a little bit of experience.
What you do as a crypto trader would affect your investments only, so if things go right, all the profits would be yours and if it goes wrong, you would have to bear the losses by yourself also. Crypto trading is like a passive income, you can do it side by side with your regular job. So, if you are interested in blockchain jobs, you still can be a crypto trader and increase your earnings. In this blog, we are going to talk about how you can start a career as a crypto trader. So, let’s get started with the steps to become a crypto trader without wasting any more time.
How to Be A Crypto Trader
Before we proceed further and tell you about how to be a crypto trader, there are a few things that you need to do. You can’t be a cryptocurrency trader without having knowledge about what is cryptocurrency and trading. If you’ve ever traded in the stock market or forex market, then you don’t need to learn much about trading but about how cryptocurrency works. Unlike stocks and other financial assets, cryptocurrency is much more volatile. You can never be sure about your speculations and where the investments will take you. Once, you read all the basics about cryptocurrency, you can think about investing or trading in it. To start your career as a crypto trader, follow the steps given below:
Open An Account In An Exchange
The only way to learn to trade is to get out in the real field. You cannot learn to trade cryptocurrency by reading articles and doing nothing else. So, the first step is to open an account in crypto exchange and see how everything works there carefully. To open an account in a cryptocurrency exchange, first of all, you must be above 18 years old. Secondly, you would need some documents to complete the KYC requirements and get yourself verified. As a beginner, you can start with easy to use exchanges like Coinbase, Kraken etc. These exchanges also provide you with the ability to buy cryptocurrencies with fiat which is why it is one of the best options for newbies in the sector. After you sign up successfully, complete the KYC and also don’t forget to enable 2-factor authentication for another layer of security.
Purchase Some Cryptocurrencies
Because you are a beginner and just learning things, it’s recommended you do not invest much right away. You can start by buying a little amount of cryptocurrency, as much as you are comfortable losing. The best option is to go for Bitcoin as it is the most promising cryptocurrency at the moment. Or you can also go for altcoins like Ethereum and Ripple.
Keep A Watch
You’ve bought the cryptocurrency of your choice and now ready to take profit from it. Now you just need to keep an eye on the price movements so that you can take advantage of it on time. Subscribe to trusted news sources to keep yourself updated with the latest crypto news and don’t let your sentiments in between. Some common mistakes that traders make are by selling their coins for less by seeing the price fluctuating in the wrong direction. To save yourself from panic selling you must prepare a trading strategy beforehand about when you would liquidate your coins.
Another mistake traders make is by being super positive or greedy. When the price rises up instead of taking profit from it they wait for more which in the long term might turn out to be beneficial but for day trading is not a good practice.
If you cannot invest much time in day trading you can HODL your cryptocurrency for the long term. If you’ll check the history of Bitcoin, you’ll find out how it’s the price has surged from less than a dollar to thousands of dollars. So, HODL is also one of the best ways to earn profits from cryptos but it would only be beneficial in the long term.
So, the bottom line is to sell the cryptocurrency you’ve purchased for more.
What Skills One Must Have To Be A Crypto Trader?
To start your career as a crypto trader you do not need any certification or anything like that. As long as you know how to get profits from your investments, you’ll be called a good trader. Although, certain skills like computer programming can be an ad on to your career. As you’ll move forward with your career, you would need more knowledge like reading cryptocurrency charts, understanding technical stuff, speculating price movements by looking at the coin’s history, etc.
To learn more about crypto trading, you can also subscribe to crypto paper trading platforms. These platforms offer you the services to trade crypto on paper i.e. without investing real money. So, when you would have nothing to lose, you can get acquainted with all the trading strategies and tools.
Our advice is to never stop learning, no matter how proficient you think you are. This also includes learning about blockchain as it is the only way you would be able to decide which crypto coin is good to invest. You should be able to tell the difference between a profitable crypto asset and the one otherwise. But how would you know which crypto is better? Any crypto that provides some value to the existing market can be called good crypto indeed but not always what’s shown is true. So, you must dig deep and find out about the company behind the cryptocurrency and whether what they are claiming has some base or not.