Since the early 90s, online trading has become more accessible to anyone with internet access. Just about anyone can now trade their funds for stocks, commodities, indices and now digital assets.
Throughout today’s guide, we’ll be looking at the fundamental basics of trading. Vaultavo aims to keep all customers and interested readers informed with our in-depth academy section. Many other topics will be explored here and every base covered. Let’s take a look at some of the basics to get you going.
Before you dive into making some of your first trades with a beginner trading platform, it’s important to know exactly what it is that trading entails. We’re all surely familiar with the word so the concept is not that difficult to imagine; when you open your account, you will be exchanging your funds for the specific asset that you are interested in. These come in a wide variety and they each have their own benefits and drawbacks. We’ll discuss there in further detail while browsing through our revolutionary custody solution.
Most of us have the idea that trading is only done by experts and the Wall Street image that is usually portrayed in films. That’s no longer the case, if you are of legal age and have the necessary funds and documentation, then you can also join the scene. This definitely doesn’t mean that crypto trading for beginners is for everyone, it’s a commitment that requires a fair amount of time and money. Luckily, there is plenty of information available to shed some light on exactly how you should go about trading digital currencies.
Once you have decided you’d like to complete your trade, you will have to complete a buy order which is listed on your beginner trading platform of choice. This buy order will be between yourself and another party who has ownership of the specific asset, from their perspective, it would be a sell order with their digital platform. And so, the price of various markets continually shifts as buy and sell orders are completed, allowing for an active market place.
Depending on exactly what you are trading, you will likely need three things. A broker, or intermediary service to complete your trades. These are fairly common nowadays and you’ll find plenty with niche markets that may interest you. You will also need a trading platform which is the software that you will use to analyze markets and place your orders using a blockchain smart-card. Finally, if you are interested in the online crypto trading basics, you will also need a crypto custody solution to keep your assets safe and in one place.
How you can get going
Even if you have learnt the online crypto trading basics, you will find that the markets are remarkably volatile when compared to traditional stock trading options. If you are solely interested in crypto trading, we highly recommend you do the necessary research before deciding on your preferred cryptocurrency custody solution. Otherwise, the best way to familiarize yourself with the world of online trading would be to open a demo account and try your hand with some of the stock options or forex markets that are available.
By using a demo account, you risk none of your actual funds while gaining invaluable experience with online trading of digital currencies. You can then form an idea of what markets interest you and where you could hopefully make some profits. It would also be beneficial to stay up to date with the latest news surrounding your markets of interest so you can determine the best time to enter into trades. You won’t have to use the service that you have opened a demo account with, but it might be overwhelming to switch over to a new platform when you intend on trading with your actual funds.
Once you have an idea of the market you’re most interested in, you can then open a trading account with a reputable service provider who hopefully has some form of biometric security and a blockchain smart-card. Be sure to check what the requirements are before you open the account, you might find that there is a minimum deposit or a document which you are missing. If you’re looking at a beginner trading platform for cryptocurrency, you will have to consider what wallet the service is using and what’s done to protect your funds when you aren’t trading.
Crypto trading guides are useful to get your career underway but the markets will always be risky to investors as the debate continues regarding the actual value of the digital assets, let’s explore some of the risks you will be exposed to.
Risks of the industry
It’s a common perception that trading stocks and digital assets is a risky business and it can lead to some financial loss. This will always be true but you can better manage your exposure by knowing what it is you are up against and how to never lose crypto.
With online crypto trading basics, the first piece of information you will always come across is that the markets are incredibly volatile when compared to traditional trading options. This initial volatility can be attributed to many factors but the general consensus is uncertainty of the technology. No one knows how it will be regulated and whether the blockchain has the capacity to compete with centralized finance systems. This uncertainty is clearly illustrated in the price patterns of just about all the cryptocurrencies; a statement will be made by a key figure and the price will rise or drop significantly. Then at other times, the price will simply move for no reason at all. Keep this in mind when you are looking to enter the crypto market as you will need to adopt a strategy that minimizes the impact that the volatility has on your portfolio.
Another considerable risk with crypto trading for beginners is that the markets do no rest. With global stock markets, active trading hours are limited to a certain period of the day and then the markets close, however, while learning the crypto trading basics you will find that the markets are never closed. Traders are able to purchase and sell from anywhere at any time with the use of a private key smart-card. This means that you could wake up one morning and due to the volatility of the market, the price has risen or fallen substantially. One method of mitigating this risk is by setting stop-loss orders on the crypto that you own, this will put your digital asset up for sale if a certain price point is reached and protect you from further losses if the price continues to slide.
The final factor is the demanding research for beginner trading. Cryptocurrencies are radically different to stocks and the technology can be confusing to the general public. Understanding blockchain technology and its intrinsic value will require numerous hours of reading and engaging in the scene as a whole. By starting with the cryptocurrency basics, you are already a step ahead but that step is only the beginning. You will have to keep up to date with which cryptocurrencies have burst onto the market and what they offer potential investors. Fortunately, we’ll be discussing some cornerstones that you can keep an eye out for.
To make a success of crypto trading strategies, you will need to keep up with all the news as much as possible. Due to the aforementioned risk factors, the most powerful tool at your disposal would be a reliable source of news. This may provide you with the necessary insight to making a profitable trade or you might come across a new cryptocurrency with great potential. The best means of following these developments is by finding a reputable news source and by following renowned social media channels. You’ll also need to learn how to never lose crypto by making use of a crypto custody solution. We’ll be covering that throughout the Vaultavo academy.
At first, sticking with the well established cryptocurrencies may be the best choice as new cryptocurrencies are made available almost daily. It takes some time to familiarize yourself with blockchain technology before you can confidently determine if a new option is worth your time. Our Vaultavo guide is complemented by a number of whitepapers which explore the technical details of the technology. When you’ve finished with the academy section of crypto brokers for beginners and opened your crypto trading account, you can begin to learn all the detailed aspects to further aid your decisions.
The Vaultavo offer
Our offer here at Vaultavo is to provide a secure experience while crypto trading for beginners. The financial world is slowly adopting the technology and we aim to pioneer the technology needed to make it accessible. With Vaultavo, you will be able to store your digital assets with our state of the art Hardware Security Module (HSM). By using the HSM coupled with our biometric card, you will be able to transact with simple key creation while avoiding all of the common issues that have been encountered with other wallet solutions.
There are multiple interfaces available to make use of this card. If you prefer the traditional contact method, this card can be used as you’ve always done. There are also contactless solutions and the option to connect the card via USB. All the transactions completed with the card will have to be biometrically authenticated when you use the card to provide further security in case your card is misplaced. Finally, an eInk display serves as guidance to all customers and provides you with visual verification. This blockchain smart-card is the ideal solution for those looking to securely and conveniently transact using simple key creation.
Knowing how to fund crypto trading is another crucial aspect to keep in mind. There have been a number of cases where customers have made use of a fraudulent service and lost their funds. Vaultavo now provides a custodian service to set all traders’ minds at ease where you can deal directly with our expert team.
This concludes our discussion of crypto trading basics. Before you dive into the online trading of these digital assets, we highly recommend that you browse through the basics of what make up the system and maybe browse through some of our whitepapers to get the technical insights into the technology. Once you’ve got an understanding, follow our steps to get your account opened up but always keep the risks of the industry in mind to prevent loss of private key details.
You should also keep up to date with all the latest developments by following our social media channels and blog posts. The Vaultavo offer is paving the way into the future of digital assets and transactions and we look forward to welcoming you to our custody solution.
Crypto trading for beginners FAQs
Are there any beginner trading platforms?
A trading platform will serve as your tool to buy and sell various options. If you have never traded before, you might be overwhelmed with all of the figures and charts. Some of the platforms do make it a little easier and have targeted their platform towards beginners. To find out more about these options and to discover all the necessary information regarding the trading world, head to our academy section now. Our team has put together a number of pages which will get you up and running in no time.
Where can I find out more about cryptocurrency for beginners?
Cryptocurrency is a form of blockchain technology and it has experienced a large surge in popularity over the past decade. Due to the public interest, the crypto market is incredibly active and provides the perfect trading opportunity. Before you get started with your venture though, we recommend that you browse through our page discussing how to trade and how to never lose crypto. Not only will you learn about online trading as a whole, but you will also find a wealth of information related to cryptocurrency options.
What do I need to trade crypto?
As with any online service, there are a number of documents and prerequisites you will need before you are able to trade. This will largely depend on where you are trading from and what service you are using. Our academy has detailed all the first steps you will need to make to get started with a beginner trading platform. All the information is also provided free of charge to anyone that is interested in online trading. Head to our site now to find out more about a digital platform with Vaultavo.
How is crypto stored?
Cryptocurrencies have a variety of storage methods which are generally termed wallets. You will find some hard wallet options, web based wallets and even apps on your phone that provide a wallet service. Before you sign up for just any crypto wallet, it’s important to take a few factors into consideration such as biometric security. Our team has gone through all the offers and identified key characteristics of a good service. You’ll be able to find all the information right here in our crypto trading for beginners guide.
What is online trading?
Online trading serves as the foundation of the crypto market. The digital asset relies on all of its stakeholders to trade in order for the asset to have a value. To understand the online trading scene is your first step towards understanding cryptocurrency. Our guides here at Vaultavo start from the beginning and aim to inform all interested readers before diving into a cryptocurrency custody solution. You will also find detailed whitepapers which get into the technical aspects of blockchain technology once you have an understanding of the basics.