I realised that there have been a lot of comments under some of my posts. These comments have come from people asking me to explain certain things in my posts to them, because they are just starting out in crypto.
Well, I got tired of explaining it one by one, so I decided to make this post to explain to everyone. I will be linking this post to any comments I get asking me to explain any basic things, because I wish to make the post very complete.
This post will be short and sweet though. I wouldn't want to write 3500 words so the new people just get confused or lost in all the information. Minus everything I've written so far, I want this post to be under 800 words.
Let's get started then!
Here are all the topics I will cover in this post:
- What is crypto trading?
- Where can I learn how to trade crypto?
- Should I pay to learn?
- Where can I practice what I've learnt?
- How do I know which coins to trade?
- How much is enough capital?
- Who should I follow on Twitter for all the latest news?
- Whose videos should I watch on YouTube?
- What is a blockchain?
- What are the things I need to start off my crypto journey?
- Should I bother about mining at all?
- Where can I get crypto for free?
- Should I bother with cloud mining?
- What exchanges should I use? And why?
- Can I get rich doing this?
- Crypto trades 24 hours a day. When is the best time for me to trade?
- Should I even trade crypto? Or should I buy and hodl?
- Why is it even spelled "hodl"?
- Should I just learn Forex instead?
I want this to be a dynamic post. So if you have any questions that I didn't add, leave them down below. I will add those questions and answer them immediately!
Luckily, I write as a hobby. So I have a bunch of these questions answered already.
I will link to posts with answers to some of these questions.
That said, once again, let's get started!
What is crypto trading?
Possibly the most asked question on my blog. Crypto trading is the exchange of fiat(regular money like your dollar) for crypto currency, with the hope that the cryptocurrency would appreciate in value and thus lead to an appreciation in your fiat value.
You can also trade crypto against crypto, which is the same exact definition as above, except you hope that one crypto falls in value, so that the other one can rise in value.
Take this example: BTC/USD
This is called a trading pair. In this case, we are using USD to purchase BTC. We hope that BTC will fall in value, so that we can purchase it at a cheaper price. When we have purchased it, we then proceed to hope that BTC appreciated in value against USD, so that we can have more USD than we started with.
Where can I learn how to trade crypto?
Right now, there are no resources on learning how to professionally trade crypto that I would recommend for noobs. Some of them are paid for, and they are totally not worth it.
The best I can recommend is to take the Forex trading course at BabyPips.com.
This course teaches the basics of Forex, but you can totally use those ideologies to trade crypto. In fact, I never really learnt how to trade crypto. I was a penny stock technical analyst before I started trading crypto. The rules are all the same in technical analysis.
Should I pay to learn?
To get off your feet, no. You don't have to pay to learn the basics of crypto trading, and if you really learn fast, you might never have to pay. All you need to do is practice until you're consistently profitable, and then start trading. The thing is, paid courses help shorten the time and remove the practice, but if you want to get props for teaching yourself, you don't need to pay anyone.
Where can I practice what I've learnt?
Right now, there aren't a lot of brokers offering demo accounts. They have so much stuff going on on their live accounts that there's no time to start managing demo accounts.
Luckily, I was able to find two that offer demo accounts: Bybit and KuCoin.
I suggest you practice for at least a month, and only start live trading once you have a 70:30 win to loss ratio.
How do I know which coins to trade?
I have highlighted the criteria in a post. Check it out here.
How much is enough capital?
I can't stress how important it is to START SMALL. Most people want to strike it rich in just 2 trades, so they borrow money and have large accounts with no experience. And of course they blow it all.
My tutor taught me one thing: Your experience must always be greater than your capital at first, so that your capital would eventually be greater than your experience.
That said, I do not recommend any new trader starting out with more than $1000. That is an extremely large amount of money for someone who hasn't done this before. I also don't recommend accounts less than $100, because then you're just playing around.
Keep your account equity between $100 and $1000.
Who should I follow on Twitter for all the latest news?
- Coindesk: Mainly for the news, and latest happenings in crypto.
- Hornhairs: For daily technical analysis insights.
- OracleofCrypto: Daily technical analysis insights also. Equally a lot of crypto news, and lavish spending of course
- Crypto Funny: For those times you want to get a laugh after a rough day.
- Also, always follow the exchange you choose on twitter. They post updates on the hour there, and if you don't follow them, you'd miss important updates.
Whose videos should I watch on YouTube?
- Crypto Jack
- Oracle of Crypto
- Trading with Rayner
- Forex signals.com(to learn a lot about Forex trading, which can then be applied to crypto trading)
What is a blockchain?
Explained in detail here.
What are the things I need to start off my crypto journey?
Basically, you'd need 3 things:
- A good computer(I recommend anything with more than 4GB of RAM, because you will have a lot of tabs open in chrome(or Brave)
- A great trading platform: I wholeheartedly recommend Binance.
- A bunch of skill.
That's all you really need to be successful in your journey.
Should I bother about mining at all?
Check this post out for more on this topic.(it's really controversial)
Where can I get crypto for free?
Once again, I have a post on that. Check it out here.
Should I bother with cloud mining?
The short and definitive answer is: No. There are way too many scams out there, and I don't see why you should risk money you could use to invest anyway. In fact, if you hone your trading skills very well, you could be making 10x what those contracts promise you in the same amount of time!
What exchanges should I use? And why?
The best exchange for noobs is Binance. It's really easy to use, it has a mobile app for those who can't be in front of a computer all day, and it has really low fees. They have also integrated Simplex into the platform, so you can buy crypto with your fiat.
Special offer: Sign up to Binance here, and enjoy 20% off the already low fees!
If you're a Bitcoin freak, and you want to convert your BAT that you earn here to Bitcoin instantly, you could use Changelly. They charge a tiny fee, and the change is instant.
Can I get rich doing this?
I have a post here on that.
Crypto trades 24 hours a day. When is the best time for me to trade?
Literally anytime is the right time. It's possible to make profits all day, and if you have only an hour to trade every day, you can totally make a ton of money if you know what you're doing.
Should I even trade crypto? Or should I buy and hodl?
Read my post on this here.
Why is it even spelled "hodl"?
Ok. So the story goes like this. Some dude on some crypto forum back in the day misspelled the word "hold". This was in the early days of bitcoin and crypto. Everyone in the community thought it was a great idea to call it that, and that's how we got here.
The funny part is that the guy never took credit for it. Oh well
Should I just learn Forex instead?
Once more, refer to my post here.
So there you have it! The complete guide for noobs!
Did I miss anything? Tell me in the comments below.
Thanks for reading.