How to Play Crypto for Beginners
In general, cryptocurrency can be obtained in 3 ways, namely by completing blockchain algorithms or mining, buying, storing and selling crypto assets in the secondary market or trading, and getting crypto assets as rewards or payments for completing a task in the game.
In this article, the author will focus on discussing how to play crypto for beginners from how to trade crypto in the secondary market. This is because this method is more commonly used and more "friendly" to beginners compared to direct mining.
Here are 7 ways for beginners to play crypto that you can follow:
1. Prepare cold cash first
Cold money is a portion of your income that is not used to buy daily necessities or pay bills and debts. Using cold money is a risk management principle that must be applied in any investment instrument. The goal is so that losses in the investment do not disrupt the fulfillment of daily life.
2. Choose the best crypto exchange
The second step is to choose the best crypto exchange. In addition to being registered with the Commodity Futures Trading Regulatory Agency (BAPPEBTI), you must consider several other factors, namely:
The number of crypto assets offered.
Whether or not there is a crypto trading demo.
Crypto trading learning facilities provided.
Transaction fees charged to users.
Application capabilities, such as user interface (UI) appearance, application volume, etc.
Track record of the app and the company that created it.
The level of security.
The liquidity of the application.
3. Create an account on the crypto exchange application
After choosing the best application, the next step is to create an account on the crypto exchange application. Usually, this application is equipped with biometric data verification, so you only need to fill in population and account data properly and correctly and enter a selfie with your ID card.
After that, you can buy some basic coins first, such as BIRD, IDRT or USDT. This is because buying cryptocurrency generally cannot be done directly to rupiah, but must be done through the stablecoin.
4. Choosing the best cryptocurrency
Once you have BIRD or USDT, you can choose other cryptocurrencies according to your wishes. However, as a beginner, it would be better if you choose the best cryptocurrency carefully.
Perform technical and fundamental analysis of your chosen crypto asset. Technical analysis of this instrument is more or less the same as technical analysis in stock investment, although crypto naturally has a higher level of volatility. As for fundamental analysis, you can read the whitepaper of the crypto asset and news about it in a certain period of time. However, because crypto assets are world-class assets, the majority of these crypto whitepapers are written in English.
If you do not have enough time and knowledge to do an in-depth analysis, as a beginner you are advised to buy crypto assets with the largest market capitalization, such as Bitcoin (BTC) or Ethereum (ETH). Because at least, these cryptocurrencies are already in demand by the general public, even though the price is relatively expensive.
5. Create a trading or investment plan
After knowing the best cryptocurrency of your choice, then make a trading or investment plan. In this trading plan, you can write down your trading plan and strategy. Included in the plan and strategy is the trading time. Unlike the stock and forex markets, the cryptocurrency market operates 24 hours 7 days and without intermediary agencies. Therefore, make sure you stay in good condition physically and mentally when trading this instrument.
This trading or investment plan is important to prevent you from having a fear of missing out (FOMO) when trading and aims to make it easier for you to evaluate your trading strategy.
6. Testing strategies using a demo account
One way to play crypto beginners is to learn using a crypto trading demo. In this demo account, you can open or close trading positions using real-time data but fake money. So when you have to cut loss, you will not experience a loss.
Using a trading demo is important for both novice investors and experienced traders. Because with this demo account, they can analyze the effectiveness of the strategies they have created previously.
7. Start investing
The final step in how to trade crypto is to start investing in the crypto assets and time you have chosen before. Cryptocurrency is one type of asset with high price fluctuations. Therefore, it is not recommended to buy or sell this asset just because the price suddenly goes up or
suddenly down. Use the plan you have made in the trading plan, so that your investment results can be maximized
