How to Get Started with Crypto in 2024: The Ultimate Guide for Beginners
Introduction
Getting started with cryptocurrency is overwhelming. With so many coins and trading platforms and strategies out there, it is pretty easy to get lost and be confused about what to do or where to start.
This can help you find a way into the crypto market, explain how to buy and sell cryptocurrency, which are the right coins, and how to build a portfolio. We shall do everything using reliable platforms and strategies on how to make the right investment decisions while avoiding pitfalls.
By the end of this guide, you should have all the information you need to kick off your journey into crypto, from picking out the best trading platform to finding coins with the most potential—plus how to look after all that investment properly.
How to Buy & Sell Crypto
Picking a Platform
Step one would be to first of all select a trading platform; one of the most recommended is ByBit, as it is very simple to use and offers strong security features. To begin, you need to sign up and make a deposit.
- Create an Account with a Crypto Exchange: First, open an account on a crypto exchange like ByBit or any other exchange of your choice. The exchange necessarily has to be legitimate and have the functionalities you are going to like.
- Funding: Having opened an account, you will need to fund it. Log in to ByBit, scroll over toward the ‘Deposit’ section, and send your fiat currency or crypto to your trading account.
- Access Trading Interface: Click ‘Spot Trading’ in the ‘Trade’ section. So, actually, this is the place where you will have buttons to buy or sell the different cryptocurrencies.
Buy or Sell Cryptocurrencies
- Spot Trading: This is a simple buy of any base cryptocurrency, let’s say Bitcoin, without leverage. Essentially, you determine upon entry the cryptocurrency to be bought, such as Bitcoin, and whether a limit or market order will be used.
- Limit Order: Enter the price at which you want to buy or sell. This order will be executed once the market reaches that price.
- Market Order: Buy or Sell immediately at current market price for a quick transaction.
- Scaling Into Positions: You can drag this slider to the amount you wish to invest or just simply type out the exact amount you’d like to invest. Let’s say you’d like to buy $500 worth of Bitcoin: drag to that amount, then options click / buy.
- Asset Management: Once you have bought your asset, thereafter you will be able to view them through the ‘Assets’ tab. Of course you are at liberty to transfer funds from one account type to another in the event of a necessity, namely from a spot account to some derivatives account.
How to Pick the Best Altcoins
Evaluating Altcoins
If you want to just pick some of the promising altcoins, you can do so using CoinGecko. CoinGecko would be the platform to provide you with all the information related to other cryptocurrencies, for example, their market cap or historical performance.
- Market Capitalization: A check for stability or the potential to grow can be carried out directly from its market capitalization. High market caps most likely indicate that it’s an established coin, while a low market cap might mean higher volatility.
- Comparison with Bitcoin and Ethereum: CoinGecko enables comparison between market performances of altcoins with that of Bitcoin and Ethereum. For example, if DCR performs poorly compared to Bitcoin, it is less favorable than just holding bitcoin.
- Price Trend Analysis: Look at the price trend given in the historical charts. Accordingly, pick out cryptocoins which have been giving better performance consistently against a Bitcoin. Such cryptocoins are expected to have done good in your portfolio.
How to Structure Your Crypto Portfolio
Crypto Portfolio Allocation
The perfect way to structure your portfolio depends upon your risk tolerance and investment goals. Here is how it goes:
- The Best Coins: Allocate 80-90% towards the best-of-all-time coins, primarily Bitcoin and Ethereum. These hold a lot more steadiness compared to the rest and are not subject to extreme volatility.
- Very High Risk: Those not willing to back down with their money would be allocated between 10-20% in smaller altcoins/micro-caps. Large possibilities of bigger returns will come with a bigger potential for loss.
- Diversification: Spread the risks by diversifying the investments in a number of coins and avoid keeping all the funds in one asset or just a few highly risky coins.
A Simple Trading Strategy
The trading strategy to apply on TradingView charts
- Setting up TradingView: Sign up for an account at TradingView. Next, sign in and type in the cryptocurrency ticker, for example, ERD for Elrond, and select the chart from the same marketplace.
- EMA Indicators: Superimpose the Exponential Moving Average indicators on the price chart to guide us on the current market trend. The EMA indicator settings are 21 days in yellow and 50 days in red.
- Buying and Selling Signals
- Buy Signal: Generated when a 21-day EMA moves above a 50-day EMA, this means that the market is in an uptrend; hence, buy when the price is above both EMAs and both EMAs are pointing upward.
- Sell Signal: A sale is made when the 21-day EMA crosses the 50-day EMA from top to bottom, indicating a trend change from bullish to bearish.
Conclusion
After doing this, you are good to go in the crypto world. From the choice of the right platform to buy/sell strategies and picking promising altcoins and structuring a portfolio, these form the grounds for a beginner. Keep in mind that successful trading is all about being adaptive and learning continuously from the market.
If you’ve liked this tutorial, smash that like button, subscribe, and hit that notification bell to get reminders of your next cryptocurrency trading opportunity.
