Ensuring profitability and long-term success in cryptocurrency trading is subject to well-formulated strategies, tools, and reliable trading platforms. If you have never traded before, it is critical to understand the fundamentals of a crypto asset and a whole range of other details that relate to crypto trading.

 

In this guide, we will furnish you with the basic trading principles to get you started for your cryptocurrency journey. Learn everything you need to know before investing in Bitcoin, Tether, Ethereum, and other digital assets.

 

Making your first move

 

As a beginner, the following two items are essential for cryptocurrency trading

 

  • A cryptocurrency wallet
  • A cryptocurrency exchange

 

The next thing you would want to consider while trading cryptocurrencies is selecting how to trade:

 

  • Trade dollars to crypto

For instance- USD to BTC or LTC to USD

  • Trade crypto to crypto

For instance- BTC to ETH or ETH to LTC

 

What regulates the price of a cryptocurrency?

 

Utility

 

Utility refers to the usefulness of a digital asset. The more functional a cryptocurrency is, the more credible it is to be foreseen as a ‘valuable asset’, and thus, the more probable it is to be bought. 

 

Let’s consider Ethereum for example, crypto and blockchain experts regard it as the most serviceable network that also serves as a platform to build decentralized apps. It features neoteric applications of blockchain technology in the form of an application store instead of a medium for exchange. It is a highly acclaimed network that has built a powerful reputation in the eyes of global investors in recent years. As a result, Ethereum is categorized as a high utility cryptocurrency that commands top market value. 

 

Supply and Demand

 

The price of a cryptocurrency depends on various factors including supply & demand that affects the market rates of digital assets. 

 

For instance, Bitcoin is the most accredited and widely-known cryptocurrency in the world. It is the primary reason why crypto enthusiasts are exceedingly interested in buying and investing in BTC assets. In fact, currently, there is an approximate circulation supply of 16.7 million BTC coins according to the reports. In comparison to its peers, the number of Bitcoins available for trading is quite low. 

 

When weighed against the astounding demands BTC has witnessed over a span of a few years, its low supply is believed to be the driving force behind its price surge.

 

Market Sentiment

 

While trading cryptocurrencies, it is likely that you will transition between multiple positions at a higher frequency. Therefore, we, at NitroEx crypto exchange, recommend novice traders to step in with meticulous research about cryptocurrency trading factors. 

 

Read the latest articles and updates on a cryptocurrency you wish to indulge in. If you are intending to buy a crypto coin that has no real coverage, chances are that your position will fester and decline. On the other hand, getting a clear insight into the sentiments surrounding a cryptocurrency will enable you to filter useless digital coins having bleak chances to undergo any price movements.

 

Understand when to cash out

 

Seizing crypto trading benefits ultimately comes down to knowing when to sell. The crux of the process is deciding whether to continue or close the crypto investment at the right time. 

 

The professionals at NitroEx crypto exchange understand that getting into digital trading is easy, whereas, realising when to get out is relatively difficult. In simple terms, there are two different aspects of evaluating your investment:

 

  • Closing a trade after earning profits: Determining when to take your winnings out of your trade is vital for making financial gains. Cryptocurrencies can experience substantial growth or dip in its market prices, therefore, you should never delay in encashing your profits. Also, you shouldn’t be too quick and miss out on the extra returns in case the prices further skyrocket to a new level. 

 

  • Cutting your losses: If a trade goes too wrong, you want to be prepared to cut down your losses while also not jumping out too early in case the crypto value recovers. 

 

There are many ways to scrutinize your investments as a beginner when you trade cryptocurrencies.

 

Types of trading

 

If you are interested in making market investments, there are mainly two types of cryptocurrency trading available for the traders:

 

  • Intraday or short-term trading

As the name suggests, it implies buying and selling of cryptocurrencies over the period of a few hours or the entire day. Intraday trading facilitates the possibility of leveraging short-term price swing benefits without having to wait for a longer span of time.

 

  • Long-term trading

Traders who wish to buy and hold cryptocurrencies for prolonged time do so with long-term trading. They may hold their digital asset investment for a week, month, or years depending on the market demands. Conducting extensive research on price fluctuations enables long-term traders to make informed decisions without enduring the short-term value dips. 

 

 

Selecting the right cryptocurrency trading platform

 

Market trading might feel like a reserved undertaking for the financial elites but it is actually a myth. With the growth of cryptocurrencies and online currency exchanges, trading is more accessible than ever. As a beginner, all you need to know is how to pick the right cryptocurrency trading platform. Some of the key highlights include:

 

  • Cryptocurrency availability: There are thousands of digital assets in the market but only a few are high-performing. Instead of getting distracted by crypto links, we suggest you go for exchanges that offer leading cryptocurrencies for making initial investments.

 

  • Trade fees: A lot of your investment profit is decided by the commission fees charged by various cryptocurrency trading platforms. High trade rates cut down the investment returns, leaving you with a constricted ROI.

 

  • Investment amount: We recommend beginners to analyze their trading strategies. Opting for exchanges that accept minimum investment amounts might work the best for you. 

 

We, at NitroEx, ensure that our product offerings meet the different demands of users. From wide liquidity pools to high-security standards, top market pairs to lowest trade fees, we furnish a myriad of cryptocurrency exchange services for effortless trading experience.

 

Getting started with NitroEx crypto exchange

 

The foremost step to start crypto trading is to create an account on a cryptocurrency exchange platform. At NitroEx, we recognize the needs of our users and therefore we furnish an intuitive and clutter-free trading platform for beginners and professionals alike. 

 

The steps for signing up with NitroEx crypto exchange is easy:

 

  • Create an account and fill a simple application form for KYC validation.
  • Wait for your account verification.
  • Fund your account.
  • Start buying and selling cryptocurrencies.

 

Note: KYC is only required for withdrawals. KYC is not mandatory for trading and making deposits.  

 

We provide the best-in-class market experience with high-level security standards and fast trade execution. Our intuitive and easy-to-use crypto trading platform provides a myriad of cryptocurrencies such as BTC, XRP, LTC, USDT, ETH, and many more to trade and earn profits. The NitroEx support team is available 24x7 to guide users through the basics of crypto trading right from buying digital assets to selling them to reap maximum benefits on the total investment.

 

If you want to know more about how cryptocurrency trading works or wish to create a new account, reach out to us at support@nitroex.io