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Breaking Down the Basics of Crypto Trading in 2020

Last updated on May 7, 2023

Cryptocurrency trading is one of the most exciting ways to make money in finance today. With the rise of digital money, many investors are exploring this new and exciting field. If you want to dive into the world of cryptocurrency trading, you first need to learn about the basics so that you can make the most of what this innovative market has to offer. Here is all the information you need to know about breaking down the basics of crypto trading in 2020 in India.

What is Crypto Trading?

Crypto trading, also known as digital currency trading, is the process of buying and selling digital tokens, such as Bitcoin, Ethereum, and Ripple, to gain profits. Crypto trading can take place on cryptocurrency exchanges and involves speculating on the price movements of various cryptocurrencies. A cryptocurrency exchange is similar to a stock exchange and it is the market where people can buy, sell, and trade cryptocurrencies with one another.

Knowledge and Experience

Investing in digital currency requires a certain level of knowledge and experience in order to maximize your profits. Knowing the basics of crypto trading will help you make more informed decisions and better understand how the market works. You don't have to be an expert to start trading cryptocurrencies, but it is important to know and understand the basics. This can include learning about what cryptocurrencies are, how to set up a wallet and accounts, as well as how to read and interpret price charts.

Choose a Broker or Exchange

The first step in trading crypto is to find a reputable broker or exchange that offers what you are looking for. Most crypto exchanges require you to set up an account and then deposit funds into your wallet. As you start trading, you will be required to pay fees and commissions associated with each trade. It is important to research the different exchange rates, leverage and liquidity available on each exchange so that you can find one that fits your trading needs.

Set Up a Trading Plan

The next step is to come up with a trading plan that works for you. Always assess the risk and rewards involved with each trade before you make a decision. Creating an effective trading plan should include setting up a stop-loss point and a target price to maximize your profits. It is also important to keep a close eye on the market and stay up-to-date with any news or events that might affect prices. This will allow you to make informed decisions when trading.

Start Trading in Small Amounts

When starting out, it is best to trade in small amounts so you can get used to the process and minimize your risk. Many traders start out with small positions and they slowly build up as they become more familiar and comfortable with the trading process. This is also a great way to learn how the market works and to test trading strategies without the risk of incurring large losses.

Real-Life Stories to Inspire and Motivate

One of the best ways to gain insight into the world of crypto trading is by listening to real-life stories from traders who have successfully transitioned into this career. Noor, a 25-year-old trader from India, started out by trading on a few digital currency exchanges and over time, she was able to build a successful trading business. She was able to use her knowledge and experience to successfully navigate the crypto market and make sound decisions. Without her risk-taking attitude and determination to succeed, Noor wouldn’t have been able to build her trading business in such a short time.

Similarly, Ray, another crypto trader from India, began trading on a smaller exchange and over the years, he has been able to increase his portfolios of digital coins. Ray is an example of someone who has been able to leverage his experience and knowledge to trade successfully. He is an advocate for learning more about the crypto market and shares his experience with aspiring traders.

Salary Insights in INR for Crypto Trading

The salary of a crypto trader in India is determined by their level of experience and the size of their portfolios. Professional traders who have years of experience and a large number of digital tokens in their portfolios usually earn the highest salaries. The average salary of a crypto trader in India can range from Rs. 15,000 to Rs. 3,00,000 per month. However, salary expectations can vary significantly depending on the specific trader and their trading experience.

Possible Challenges and Obstacles

Trading cryptocurrencies can be risky and investors need to be aware of the potential losses they can incur. As with all investments, trading cryptocurrencies comes with a certain level of risk and traders should never invest more money than they are willing to lose. Additionally, trading in the volatile cryptocurrency market requires investors to remain updated with news and events that can affect prices. To be a successful trader, you will need to be constantly researching, analyzing market trends, and making informed decisions. Another challenge that some investors face is the lack of knowledge and experience in trading digital currencies. As with any investment, it is important to understand the fundamentals before entering the market.

Actionable Steps to Transition Into a Crypto Trading Career

If you want to transition into a career as a crypto trader in India, here are some steps that can help you get started:

Research the different digital currencies and become familiar with the blockchain technology that powers them.
Learn how to read price charts and interpret the data they show.
Find a broker or digital currency exchange that best suits your needs.
Open a trading account and fund it with a small amount of money.
Create a trading plan that works for you.
Start trading in small amounts and gradually increase your position.
Stay up-to-date with news and events that can impact prices.

Conclusion

Crypto trading is an exciting way to make money in finance today. With the rise of digital money, many investors are exploring the world of crypto trading. Before getting started, it is important to have a basic understanding of how the cryptocurrency market works, as well as understanding the risk associated with it. Additionally, it is also important to find a reputable exchange and create a trading plan that works for you. If you are willing to take the right steps and put in the effort needed, transitioning into a career as a crypto trader in India can be a great way to reap the rewards of this innovative market.