There is an ever-increasing number of altcoin traders. This industry has become one of the most lucrative sectors, especially during the months leading to and after the Covid-19 pandemic.
Of course, the DeFi sector especially was already growing even before the unprecedented events of the year 2020. But you can't deny that the work-from-home system also played a crucial role in the developments of yield farming or NFT trading and gaming. (1)
Even today, new people people keep joining the crypto community. Whether you're a beginner or a seasoned trader, it is worth a reminder that the first rule of thumb is that you should always understand the dynamics of the market before you put your money on the line.
You should also find a trading platform that best fits your needs. There are many websites like Crypto Exchanges Australia that list reputable crypto exchanges that are best known for a given digital coin in various countries across the globe.
That said, this article discusses all the three newbie tips for trading crypto in Australia. If you're interested to know more, keep on reading!
-
Find the right trading platform
The first step towards a great experience as a trader is finding the right trading platform for your trading style. Unfortunately, this is the one thing that many beginners overlook and struggle with in their journey in this field.
Where you carry out all your trading-related tasks doesn't only determine your overall experience but may also have a significant impact on your success.
There are many crypto exchanges in Australia today, and many more international exchanges that accept Australian traders. (2)
That's an advantage, but it also means you're likely to have difficulty deciding on the right candidate. Therefore, you must have a list of factors to consider when deciding on this situation.
One of the most crucial things to look for is the exchange's licenses. It should be certified and accredited by relevant authorities. If you want to really take all the precautions, the exchange should be based in Australia and offer asset insurance.
Make sure that the platform you choose is also easy to use. Navigation of the website should be simple, even for beginners. This is crucial because you would want to access all necessary corners during your trading sessions, especially when trying to save time. In addition, it will help make your technical analysis easier.
Talking of technical factors, any financial analysis reports offered by the platform should be written clearly enough for you to understand. This way, you'll be able to make informed decisions that will impact your success as a trader.
-
Choose the best cryptocurrency for your trading
All crypto exchanges you'll come across in Australia offer a variety of alt coins to trade, although some have limited options. In fact, this should be one of the factors to consider when choosing the right crypto exchange platform for you—the more cryptocurrencies at your disposal, the higher your chances of success as a trader.
However, just like crypto exchanges, the more options you have, the more complicated your decision becomes as to which one to trade, especially if you're a beginner.
So, why does the type of crypto coin matter? First, the value of these currencies determines their affordability. For instance, apart from being the most popular, Bitcoin is currently the most valuable cryptocurrency. Its growth in value also makes it one of the best options for any trader looking to join the mix. Of course, there are other alternative coins, but you'll have to be careful with your choices because their growth hasn't yet matched Bitcoin's. (1)
As an Australian trader, your options for cryptocurrencies include anything from the big cryptos (Bitcoin, Ethereum, Dogecoin, and Litecoin) to the small low-cap cryptos and DeFi coins. The list is unending, but these are the top-performing coins in the industry. Therefore, make sure you choose a crypto exchange platform with at least one or all three. (3)
-
Learn basic trading skills
It doesn't matter where you're trading from. The rule of the game is pretty much universal. Thus, before you step into the field, it's recommended that you learn the basic knowledge of trading crypto.
For a beginner, the ins and outs of this industry can be very intimidating, but the gist is pretty much to know whether you want to buy a crypto for the long run, or whether you will want to sell it in a small profit as soon as possible.
• The easiest buy-and-hold strategy is called dollar cost averaging and there’s an Aussie exchange that lets you easily automate it.
• The most popular strategy for short-term trading is called scalping.
Start your journey with these basic terms and work your way up towards crypto's complex knowledge - it will enhance your understanding.
The good thing is that once you've gotten the hang of it, the rest of the things will start flowing. Fortunately, there are many informative materials online to learn about trading crypto. Make sure you go through as many relevant articles and videos as possible so that you can be well-prepared for the task ahead.
Conclusion
Trading crypto isn't for the faint-hearted, but that's not to say you can't do it. If you're from Australia, it's worth noting that many crypto exchanges are designed to make your trading experience as enjoyable as possible. Hence, when choosing the right platform, some of the factors to consider include available crypto coins, ease of trading, and the company's licenses.
In addition, when trading crypto in Australia, another tip to keep in mind is choosing the right digital coin. Remember, not all coins are profitable. Therefore, your choice here may determine your success in the industry. But before you get this far, you must learn all the basics of crypto trading. This way, you'll be able to understand the fundamentals of the whole system, which should help you make informed decisions.
References
(1) - "The Complete History of Cryptocurrency for Beginners", Source: https://parameter.io/history-of-cryptocurrency/
(2) - "Best Crypto Exchanges Australia 2022 – Find A Crypto Trading Platform.", Source: https://www.business2community.com/au/cryptocurrency/best-crypto-exchanges
(3) - "Top-Performing Cryptocurrencies For Australian Investors.", Source: https://www.news.com.au/finance/money/investing/topperforming-cryptocurrencies-for-australian-investors/news-story/b67539603c05ce946373d8b0ac074948