Cryptocurrencies are primarily mediums of exchange and are better alternatives to traditional payment systems provided by banks. You can use them to pay for goods and services, transfer assets across borders within a few minutes and invest or trade them to increase profit.

If you are thinking about trading cryptocurrency, here are some setup tips to get you started:

Managing expectation & risk: The first thing beginners should be aware of is that cryptocurrency trading, is a tough business to undertake. Diving in without proper education could lead to losses especially if you aren’t well versed in trading. Beginners are advised to research the basics of trading cryptocurrency and paper trade for a while before committing funds to real trading. Cryptocurrency prices are volatile and it is advisable to use only funds that you can afford to lose. Recognize your risk level and start with a bankroll to match.

Download your cryptocurrency wallets: To get started, you should have an idea in advance of the cryptocurrency pairs you wish to trade, and download their corresponding wallets on your trading device. Wallets are important because they store the private and public keys that enable spending or receiving cryptocurrencies.

Example: To trade Bitcoin (BTC) for Ethereum (ETH) and vice-versa, you have to download a Bitcoin wallet and an Ethereum wallet to your device for sending and receiving payments.

Choosing your trading exchange platform: Your first foray into cryptocurrency will likely be with an exchange and there are two main types of exchanges. The first types of exchange are known as fiat exchanges (fiat gateways), as they allow trading of cryptocurrencies for government-issued currencies like $ (USD). The second types are called crypto-to-crypto exchanges and they allow trading only among cryptocurrencies.

There are many cryptocurrency exchanges out there. Nonetheless, choosing the right one is important to your trading success. There are several things to look out for when choosing an exchange:

Reputation: It is important to choose a reputable exchange/trading platform because most exchanges are centralized. Thus, once you send them your assets, you trust them to secure them safely and make them available to you when you want them back. The last thing you want is an exchange that isn’t safe from external attacks or one that delay withdrawals and pay only when it suits them.

It is important to choose a reputable exchange/trading platform because most exchanges are centralized. Thus, once you send them your assets, you trust them to secure them safely and make them available to you when you want them back. The last thing you want is an exchange that isn’t safe from external attacks or one that delay withdrawals and pay only when it suits them. Liquidity: is the amount of activity and volume on an exchange. When liquidity is low, there are fewer opportunities to take advantage of price movements as there is less action. There are over 1800 cryptocurrencies, and exchanges hardly list every coin. Hence, traders often use more than one exchange as a lack of liquidity can cause slippage especially when prices are falling. You should check out PrimeXBT for high liquidity and trading volumes on different cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), EOS, etc.

is the amount of activity and volume on an exchange. When liquidity is low, there are fewer opportunities to take advantage of price movements as there is less action. There are over 1800 cryptocurrencies, and exchanges hardly list every coin. Hence, traders often use more than one exchange as a lack of liquidity can cause slippage especially when prices are falling. You should check out PrimeXBT for high liquidity and trading volumes on different cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), EOS, etc. Fees: The fees you pay for transactions affect your overall profit when trading. The higher the fees you pay, the less profit you make. Most exchanges charge anywhere between 0.1%-0.2% for every successful trade. Shop around for exchanges like Prime XBT with the lowest fees and to boost your earnings.

There are other values to look out for when choosing an exchange, like whether their customer support is good or not. Depending on your strategy and capital, you should register with an exchange like Prime XBT that offers 100x leveraging via margin trading and short selling. We at Prime XBT offer highly customizable advanced trading solutions for professionals and novice traders.

Useful trading tips:

1. Risk Management: You’ve downloaded your cryptocurrency wallets, bought your cryptocurrency and have signed up to a reliable trading platform. You’re ready to start trading; however, it is important to work assiduously on how to avoid losses before embarking on your journey. A couple of things that help include:

Asset Allocation: Diversify your portfolio by spreading your assets among different cryptocurrencies. This way, your assets are safeguarded from tumbling all at once as opposed to putting all your eggs in one basket or two.

Diversify your portfolio by spreading your assets among different cryptocurrencies. This way, your assets are safeguarded from tumbling all at once as opposed to putting all your eggs in one basket or two. Stop loss limits: Profitable trading requires discipline in abundance. Knowing full well that market prices can go against you at any given moment, it is important to set a stop loss limit in advance. By doing so, you eliminate indecision and limit your losses to predetermined prices that you can afford. Stop loss limits are crucial to day trading, as swing traders can often ride out mini price slumps.

2. Technical price analysis: Constantly conducting price analysis to know your entry and exit points is important. To profit from trading, you buy low and sell high, sounds easy, but how do you determine when to buy and sell? Using price discovery techniques, winning traders know when to buy in dips and sell after the price increases a bit. This is done by analyzing the recent trade history of cryptocurrency pairs you’re interested in trading. It is important as you want to avoid buying your cryptocurrency after the price has peaked. Follow Prime XBT twitter account to learn technical analysis patterns.

3. Trade well know coins: Obscure coins, even though cheap often see less action and price movement. In 2018 the prominent cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ropple (XRP), etc. Traders usually don’t have issues filling their orders when buying and selling these coins compared to newer and obscure coins.

4. Automate trading actions: In fast-moving markets where speed is necessary, using an automated trading strategy, and using computer software to execute your trades can be the difference between losses and profit. It also helps traders minimize interfering emotions that come with winning and losing, thus, preserving discipline. Prime XBT provides tools such as One-Cancels-the-Other (OCO) orders that help to automate trading and increase your profits.

5. Avoid burnout: Trading can be stressful and mentally exhausting. Trader fatigue is very real, and trade only when you are in top form. Your mental and physical state can affect your trading decisions and impact your balance sheet. Eat well, drink a lot of fluids, exercise regularly, get enough sleep and automate your cryptocurrency trading to reduce stress and improve decision making.

In conclusion, trading cryptocurrency is a massive subject so educate yourself and keep records of all your transactions, both positive and negative to learn and improve from your mistakes. Protect your bank with effective risk management and remember that losing some ground doesn’t mean you’ve lost. Keep calm when prices decline, as that is all part of the trading. It is better to lose small amounts than losing your shirt chasing losses. When slumps eventually turn around, profits follow.

Also, remember to use an exchange like Prime XBT that provides up to 100x leverage solutions for long and short Bitcoin trading which means that you can profit when the market goes up and profit even more if it goes down.