If you’re thinking about getting into crypto trading, you might have some misconceptions about it. Here are three myths about crypto trading that we can debunk for you.
Myth #1: You need to be an expert to trade cryptocurrencies.
Not at all! Anyone can get started with crypto trading, regardless of their level of expertise. There are plenty of resources out there to help you learn the ropes.
You choose wether you want to a technical, fundamental, news-based or intuitiv trading style.
Here are some examples of different trading approaches:
- Technical analysis: is an analysis methodology for forecasting of prices through the study of past market data, primarily price and volume.
- Swing Trading: is a speculative trading strategy in financial markets where a asset is held for one or more days to profit from price changes or ‘swings’.
- Random Walk/ETF: is a financial theory that stock market prices are random and cannot be predicted.
- Crypto Astrology: is the methology of using lunar and planetary cycles to predict prices.
Myth #2: Crypto trading is too risky.
This is one of the biggest myths about crypto trading. Yes, the market is volatile, but that doesn’t mean it’s not worth taking a chance on. With the right strategy, you can minimize your risk and maximize your potential for profit.
With the right strategy and risk management, you can trade cryptocurrencies successfully and profitably.
The important part here is the risk management. Because once you lose all your money in trading, you are out of the game.
A good place to learn about risk management in trading is the Chat with Traders-Podcast. Which describes in two episodes what to look for in risk management.
Myth #3: You need to have a lot of money to start trading
Not true! You can start trading with a small amount of capital. In fact, many people prefer to trade with a smaller amount of capital because it allows them to test the waters.
With crypto exchanges you often don’t have a fixed order fee but a variable on. Which means you pay like 0.1% per Order – regardless of the order size. This means you can place orders as low as $10.
Below you find the order fees of popular exchanges: