Have you ever thought about trading cryptocurrencies? Have you ever thought of cryptocurrency as an alternative to invest your money? This article will briefly introduce you to the crypto world and the easiest ways to learn crypto trading in 2021.
But first, what is cryptocurrency?
Cryptocurrency is a sort of digital money that works as a medium of exchange. It is secured by cryptography, which therefore makes it close to impossible to double-spend or forge.
Bitcoin was founded in 2009, and it remains the most known cryptocurrency. In the last years, there has been an increase in the number of cryptocurrencies, but Bitcoin is still the best established, hitting an all-time high at $58,330 on February 21, 2021.
The Rise Of Cryptocurrencies
Cryptocurrencies went from being considered as ‘scam ' or “Ponzi schemes”, to “a store of value” and “hedge against inflation”. It did not take too long for Bitcoin to become one of the most preferred assets to invest in by large financial institutions.
There were doubts about Bitcoin at the beginning but later on, as years went by, even famous individuals, actors, and influencers started buying Bitcoin as they believed it could increase in value. And it actually did. Bitcoin was chosen as the investment of the decade by CNN. In 2020 alone Bitcoin experienced 300% growth.
Bitcoin and cryptocurrencies have been praised several times by innovators such as Bill Gates or Richard Branson. Elon Musk also is a crypto supporter. He recently announced that his company Tesla had bought $1.5 billion of Bitcoin.
Eleven years after the introduction of Bitcoin, which marks the launch of a whole new industry, the significance of cryptocurrencies can no longer be ignored.
Why Should You Learn Cryptocurrency Trading?
While eleven years have passed, it is only the beginning for cryptocurrencies, and they could have a more profound effect on our lives in the future. Cryptocurrencies are gaining a reputation and are becoming more acceptable worldwide. Many large financial institutions are investing large amounts of money in cryptocurrencies as they believe that they could be the future of finances.
Cryptocurrencies have a volatile nature as well, which is considered a good thing for traders as it gives them opportunities to earn profits.
So if you still have questions or haven't taken part in cryptocurrencies in any way, it might be a good time to start learning to trade cryptocurrencies. While the risk factor in crypto-trading is certainly correct, the rewarding element is frequently overlooked.
Check Out: Top 9 Cryptocurrencies To Trade In 2021
What Are The Best Ways To Learn Cryptocurrency Trading?
Cryptocurrency trading can be very profitable when you know how to do it properly. That is why it is important to learn to trade in the right way.
Below we present the best ways to learn cryptocurrency trading:
1. You can start with crypto books
Books can be a great way to gain insight into the technology and opportunities behind it. Cryptocurrencies are new, and therefore they can be complicated to understand. And, information about them can be quickly outdated since they continue to develop. However, there are books out there that contain fundamental facts about cryptocurrencies, which can help you understand the crypto world better. Below, we have listed the top five books to start learning about cryptocurrencies:
- Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske and Jack Tatar.
- Blockchain Revolution by Don Tapscott and Alex Tapscott.
- The Bitcoin Standard by Saifedeen Ammous.
- The Age of Cryptocurrency by Paul Vigna and Michael J. Casey.
- The Book of Satoshi by Phil Champagne.
If you want to know more about trading and investing books, check out these detailed book reviews we have made here at Trading Education for various books.
2. You can become part of crypto forums
Forums will allow you to find answers and insights into the whole field of cryptocurrencies - mining, trading, the crypto-ecosystem, reputable exchanges, etc. There are many individuals who are willing to share their experiences in crypto with others. In these forums, you can ask various questions related to crypto trading, and you will undoubtedly get answers.
Sometimes it takes time to find the best forums, so we have listed below the top five ones.
- Masters of Crypto
- The Bitcoin Forum
- Cryptocurrency Talk
- Altcoins Talks
3. You can listen to crypto podcasts and YouTubers
Listening to crypto podcasts and watching crypto trading videos on YouTube will encourage you to learn some of the crypto basics. Many professionals and traders share their expertise in podcasts which could be very profitable for newbies.
There are already numerous cryptocurrency YouTube channels. Many say that they will teach crypto trading, but in fact, they have no great value. So, to save you time, we have listed below the best crypto YouTube channels and the best podcasts as well:
Top five crypto YouTubers:
- Ivan On Tech
- Crypto Daily
- The Crypto Lark
- Sheldon Evans
If you want to know more about crypto YouTubers, check out this list of top 10 crypto YouTubers to subscribe to by the number of subscribers.
Top five crypto Podcasts
- The Pomp Podcast
- What Bitcoin Did
- The Bitcoin Podcast Network
- Unchained and Unconfirmed
4. You can take a cryptocurrency trading course
Taking a cryptocurrency trading course is a common way to learn crypto trading as fast as possible. There are many online courses, but not all of them are qualitative. Here at Trading Education, we have prepared the best courses so that you can learn crypto trading as easy and as fast as possible. Check our courses here.
Steps and tips to learn cryptocurrency trading faster
Asked to share what he values most in life now, the investor Warren Buffett said, “It’s the two things you can’t buy: time and love.”This statement alone is enough to understand the importance of time in our lives.
So to save you time by learning cryptocurrency trading faster, below we present four tips that could be useful.
1. Focus on learning Blockchain and cryptocurrency
Make your study into blockchain and cryptocurrency. There is a lot of cryptocurrency material on the internet. Get to understand the fundamentals of blockchain technology as well.
There are many resources and platforms on the Internet where you can learn many valuable things about crypto trading. Platforms like Coimarketcap or Coingecko have listed all cryptocurrencies, their performance for the moment and their entire history. Also here at Trading Education, we have the voluminous cryptocurrency articles section, which can help you better understand how cryptocurrencies work.
2. Keep an eye on the market
Take time to research the past of cryptocurrencies, their market fluctuations, good days, and poor ones. Try to discover why their price plummeted and why at some point, it erupted. Try to understand volatility. Why cryptocurrencies are volatile and how you can take advantage of this fact as a trader. Such things will help you to profit more as a trader in the future.
Read Also: Crypto Predictions for 2021
3. Understand how cryptocurrencies are taxed
While diving into the realm of Bitcoin and cryptocurrency, taxes are not the first thing most traders remember. But, knowing how cryptocurrencies are taxed is essential. However, this varies from country to country. Some states are more rigorous when it comes to taxes. While some others not so much.
4. Start practising trading as soon as possible
For some, practice is the best way to learn things. In addition to theoretical learning, trading must also be practised. Choose a crypto exchange and start with your first investment. eToro is a convenient place to start as a beginner. It is a beginner-friendly platform. It does not mean that you have to start trading with large amounts. You can start with $100 for example.
If you want to know in detail how to start trading cryptocurrencies with $100 take a look at this detailed guide.
eToro – The Best Platform to Trade Cryptos
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
- Cryptocurrency is a sort of digital money that works as a medium of exchange.
- Cryptocurrencies went from being considered as ‘scam” or “Ponzi schemes”, to “a store of value” and “hedge against inflation.”
- Bitcoin was chosen as the investment of the decade by CNN.
- Cryptocurrencies have a volatile nature, which is considered a good thing for traders as it gives them opportunities to earn profits.
- Some of the ways to start learning crypto trading are: start with crypto books, become part of crypto forums, listen to crypto podcasts and YouTubers and take a cryptocurrency trading course.
- Some of the tips to learn crypto trading faster are: focusing on learning about Blockchain technology and cryptocurrencies, keeping an eye on the market, understanding how cryptocurrencies are taxed and starting to practise trading.