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 receiving crypto assets as rewards or payments for completing a task in a 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 money first
Cold money is part 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 to ensure 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 should consider several other factors, namely:
The amount of crypto assets offered.
The existence or absence of crypto demo trading.
The trading crypto learning facilities provided.
Transaction fees charged to users.
The capabilities of the application, such as user interface (UI) appearance, application volume, etc.
The track record of the application 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 that crypto exchange application. Usually, this application is equipped with biometric data verification, so you only need to fill in your personal data and account details correctly and upload a selfie with your ID card.
After that, you can first buy some basic coins, such as BIRD, IDRT, or USDT. This is because buying cryptocurrency generally cannot be done directly with rupiah, but must go through those stablecoins.
4. Choose the best cryptocurrency
After having BIRD or USDT, you can choose another cryptocurrency according to your preference. However, as a beginner, it would be better if you carefully choose the best cryptocurrency.
Conduct technical and fundamental analysis of your chosen crypto asset. The technical analysis of this instrument is roughly the same as the technical analysis in stock investment, although inherently, crypto has a higher level of volatility. For fundamental analysis, you can read the whitepaper of the crypto asset and news related to it over a certain period. However, since crypto assets are global-level assets, the majority of these crypto whitepapers are written in English.
If you do not have enough time and knowledge to conduct 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). At least, these cryptocurrencies are already popular among the public, even though their prices are relatively high.
5. Create a trading or investment plan
After knowing the best cryptocurrency of your choice, make a trading or investment plan. In this trading plan, you can write down your trading plans and strategies. Included in that plan and strategy is the trading time. Unlike the stock and forex markets, the cryptocurrency market operates 24 hours a day, 7 days a week, and without intermediary institutions. Therefore, make sure you remain in good physical and mental condition when trading this instrument.
This trading or investment plan is important to prevent you from having a fear of missing out (FOMO) while trading and aims to make it easier for you to evaluate your trading strategy.
6. Test strategies using a demo account
One way for beginners to play crypto is to learn using crypto demo trading. In this demo account, you can open or close trading positions using real-time data but fake money. Thus, when you need to cut losses, you will not incur any losses.
Using demo trading is important for both beginner investors and experienced traders. Because with this demo account, they can analyze the effectiveness of the strategies they have previously created.
7. Start investing
The last step in how to trade crypto is to start investing in the crypto assets and time you have previously chosen. Cryptocurrency is one type of asset with high price fluctuations. Therefore, it is not advisable to buy or sell this asset just because its price suddenly rises or falls.
suddenly dropped. Use the plan you have created in the trading plan so that your investment results can be maximized.
