An Introduction to Crypto Trading or: How i learned to stop worrying and love the profits.

PT. 1.

In these 2 articles i plan to explain and introduce crypto or "altcoin" trading, what is is, how to begin,the culture and frequently asked questions about it.

I hope this article can serve as an introduction to people looking into the crypto trade or to help others explain what it is to interested parties.

1. What exactly is crypto currency?

Wikipedia defines it as "A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency, cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies."

There are numerous coins on the market

Companies who release coins have individual technology backing them, it can be anything from simple banking transactions to replacing cloud storage or
everyday things such as music and video platforms.

You will want to take this into consideration when you invest in a coin, as some coins may have a novelty value, and while being listed is one thing,
you may not get the return of investment you're looking for, and ultimately they may be delisted if they serve no purpose, or people are not investing.

For example.

Dogecoin, a realtively old coin, has been slowing making it's way in the market, it originally started as a tipping system on the website reddit where users could tip posts they enjoyed, as such, it doesn't have a very high market growth, instead growing over weeks and months.

Siacoin, a relatively new coin however, has jumped above dogecoin in price rapidly, owing to its parent company having an actual product to sell,
and market to people (De-centralized cloud storage), personally I love the idea of a completely secure cloud storage system.

So in those two different coins you can see a difference, if you're looking to invest in a very stable, slow growing coin, you would more than likely take Dogecoin, if you're looking for the possibility of a quick ROI(Return of investment) aswell as higher market growth, you would take siacoin, but ultimately, both have their risks.

While looking at parent companies are a great way to get a sense of the coins worth in the long run, this is by no means a guarantee of profit.

I will put some links below if you wish to get a deeper knowledge of exactly how a cryptocurrency works, however as this is a trading introduction it will ultimately not affect your ability to trade and invest in coins on exchanges.

1. Getting started.

To most people, getting introduced to Cryptocurrency is both confusing and anxiety inducing, a lot of people will look into it on the surface but many often feel it is either a scam, or not worth their money, as with most things that become popular outside of standard monetary gain such as shares or stock market trading, people have to be willing to put their bias aside.

I admit i felt apprehensive when i invested my first $50 dollars, however I'm glad i did and since then iv'e invested whatever spare money i can.

Getting started in crypto trading is relatively easy depending on your understanding of a few things.

-Basic computer and Internet knowledge

-Understanding of capital gains and how returns work

-Understanding your thresholds and how much money you can comfortably invest(This is an important one, don't go broke searching for something that may not happen)

-A Propensity to learn a new market

And probably the most important one.

-Time

This isn't a get rich quick scheme, just like most investments, they may take a day, or a month, or even a year, to pay off and give you the ROI you're searching for, be patient.

Now as for actually investing, this is straight forward, find a reputable exchange [Sources will be linked below] and depending on how they trade use that to buy BTC(Bit coin), the majority of traders and investors i know use Bitrex, and for australian investors, there's a great website called coinspot, that allows you to directly deposit AUD.

Bittrex is a great exchange, however it is a little complicated for first time users

Very user friendly exchange, run locally in Melbourne, Australia, trades in AUD

Once funds are in your account you are free to do with them what you will, and invest how you want, also make sure to check the exchanges fee rate as sometimes you may be withdrawing less than you think are.

If you are new to trading as a whole, i urge you to do research on the coins you will be invested in first, to understand about it what i have outlined above, don't just pick a coin because they have a name you like, or alternatively search through Steemit.com, Reddit.com or numerous Facebook groups for groups talking about good investments(there are thousands out there!)

If you however are completely new to trading in general, that is to say, you have never traded anything in your life and do not have a basic understanding of it, i strongly, strongly advise you to find some literature online, or videos, that explain capitalist trading to you.

I find a lot of times people come into these things with only one eye open and can caught and fall through traps or sell and buy at the wrong time (Panic selling and buying).

I had a friend get into the crypto trade and invest $50 dollars in Siacoin, when it dropped by 3% he panic sold his money, and the next day it rose by 17%, if you are down in money don't panic, watch the markets and wait, remember, time is a very crucial factor here, 12 hours can be worlds apart in the trading realm so hold your coins until you're absolutely sure you have to sell, most times holding your coins reaps more rewards than trying to recoup small loses.

Once you have a coin you feel confident investing in, do yourself a favour and watch the market place, the best live map in my opinion is on bittrex, you will want to look at a few things, such as 24 hour high, 24 hour low, and current price.

The basic tenants of trading apply here, sell high, buy low, however with crypto currencies buying high is sometimes viable, for example one day on a 154% upswing for Peseta coin, I invested $50 dollars and it continued to climb to 272% and had doubled my investment in roughly 30 minutes, these are usually rare however, and should only be done once you understand the market and are willing to lose whatever money you invest, remember, there's always a risk here.

For the majority of trade you will wan't to invest in stable coins that change small percentages per day, rather than massive spikes that have inevitable retracements(Reverting to their original price) I myself invest the majority of my money into stable coins such as ETH(Ethereum) ETC(Ethereum Classic) Stratis, Steem and when i can, BTC(Bitcoin) while using small "gamble" money anywhere between 20-50 dollars in coins like Siacoin, Digibyte, Dogecoin, (Mostly coins below the 1 to 10 cent mark per coin)

Thank you for reading PT 1 of this introduction to cryptocurrency trading and acquisition, in the 2nd part of this introduction i will outlay how to successfully manage your money as well as micro-trading and hitting your marks on when to sell or buy and how to better understand the markets and the basic capitalist principles that go into this.

Thanks alot guys

~Crypto Krieg.

Explanation of Crypto Currency https://en.wikipedia.org/wiki/Cryptocurrency

American exchange: https://bittrex.com

Australian exchange: https://www.coinspot.com.au