Beginner’s guide to capital (funds) aka fiat money for cryptocurrency trading. We know that “it takes fiat money to make crypto money”. However, even if almost everyone knows this, it is not easy to say exactly how much a trader needs to get started in trading cryptocurrencies. The answer largely depends on how you are going to approach your new trading crypto business.
1. Education
At the beginning, consider how you are going to be educated in trading cryptocurrencies. There are many different approaches in learning how to trade cryptocurrencies: crypto trading classes, mentors, books, being a self-taught person, or any combination of those mentioned here.
While there are many classes and mentors out there willing to teach crypto trading, most of them will charge a fee, but you still have many high quality free courses online on: Udemy, Coursera, Skillshare.com, Cryptos4noobs.com, etc. (see “References” at the end of this article).
The benefit of this type of learning is that a well-taught class and great mentor found on these free learning platforms can significantly shorten your learning curve and get you on your way to success. As long as you are disciplined and laser focused on learning the crypto markets, your chances of success increase very much.
2. Markets
Second, is your approach to the markets going to require special tools and charts. Learn by yourself about the crypto markets: CoinMarketCap, CoinGecko, decentralized crypto exchanges (Uniswap, Bancor, KyberSwap), centralized crypto exchanges (Coinbase, Kraken, Bittrex, Cex).
As for a technical trader, most of the crypto charting packages that come with the trading platform are sufficient and some are actually very good. Also, you can find free courses about Crypto Trading on Rubika Ventures telegram group and on Publish0x platform.
3. Capital
Lastly, you need Bitcoin (or Altcoins) and fiat money (capital) in order to start trading. How much money do you need exactly in order to be able to really start trading? Well, if you are constant and practice proper finance management techniques, then you can probably start with $/€1000 to $/€100k in trading budget (capital).
Nevertheless, with these new liquid platforms, you can start to learn trading with only $/€100. But for real trading you need more. It is common knowledge that most traders fail due to under-capitalization, which is especially true in Forex but also in the crypto trading business. So, if you are unable to start with a large amount that you can afford to lose, be patient, save up and learn to trade the right way until you are financially ready.
For Your Success in Crypto Trading!
Teodor M
References:
Cryptos4noobs.com: https://cryptos4noobs.com/free-crypto-trading-course/
Udemy, Crypto Trading 101: https://www.udemy.com/course/crypto-trading-101-how-trade-cryptocurrencies-for-profit/
Udemy, Complete Crypto Trading Course: https://www.udemy.com/course/cryptocurrency-mastery-the-complete-crypto-trading-course/
Coursera, Cryptocurrency and Blockchain: https://www.coursera.org/learn/wharton-cryptocurrency-blockchain-introduction-digital-currency
Coursera, Blockchain: https://www.coursera.org/specializations/uci-blockchain
Skillshare.com: https://www.skillshare.com/browse/bitcoin
Rubika Ventures: https://www.publish0x.com/@rubikaventures
Image Source, Free Pixabay License, by Gerd Altmann from Pixabay: https://pixabay.com/photos/bitcoin-coin-money-electronic-money-3798106/
