Last updated on November 11th, 2024 at 10:59 am
Basic Trading, a trader, analyst, and the author of an educational YouTube channel, answers the questions every newcomer to trading has at the beginning.
The emergence of cryptocurrency generated a game-changing impact on all aspects of life. From data storage to monetary policies, where the effect kicked in at its boldest, the crypto also flipped the notion of investment upside down.
Сrypto assets opened the door for facilitated trading – with no intermediaries and big pockets required. All pillars of investment – from public offerings to price analysis – became familiar terms for a wide community. Hence the skyrocketed interest in swinging in the market.
Nevertheless, the lack of awareness still stands between enthusiasts and their readiness to get down into trading. Many choose the individual path – and rarely succeed. At the same time, the sphere is piled with enormous educational opportunities. From the courses by Princeton, Stanford, and the University of Pennsylvania to the investment-oriented sources – Investopedia, or WhiteBASE – free educational course by one of the largest European exchanges, WhiteBIT, which also holds an educational program “Game-Changing Tech: Mastering Blockchain” in cooperation with FC Barcelona.
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A wide offer sometimes brings confusion, as it is unclear what to begin with. To answer the burning issue, I had a chat with Basic Trading – an investor and market analyst who educates people about trading – to shed light on the very common yet essential trading aspects.
Introduction
– Could you tell our readers how you found yourself in trading? What caught your attention about this sphere?
– First, I thought that I could make a lot of money fast and that’s why I started trading – I saw other people on YouTube making a couple €1000 in a week and I wanted to achieve the same results.
– How were you learning to trade? Did you have a mentor, or managed to enter the sphere on your own?
– I had multiple trading mentors when I started trading 5 years ago – they all helped me in some way, although I never copied one trader 100%. But it was worth every penny in the end.
About the beginning of trading
– Many of those who desire to take up trading tumble down at the beginning. Is there a right way to begin with investments? What should be a newbie’s first step?
– The first step when it comes to trading is still finding a mentor and learning as much as possible from profitable traders. There is still a reason why these people are part of the 5% who make money.
– Is it essential to have a deep understanding of blockchain’s technical basis in crypto trading, or is operating with trading knowledge enough?
– It is not required to have deep knowledge about crypto and blockchain in general to trade it profitably! You just need an understanding of trading, and then you can trade every market and asset class without diving deeply into fundamentals.
– Could you name the three most common mistakes beginners tend to make in crypto trading?
– The three most common mistakes are overtrading, overleveraging, and being too greedy.
– What would be better for a beginner: taking up trading and getting educated in the action, or preparing in advance? Why?
– Beginners should always gather knowledge first before they start trading since it can lead to devastating losses if you neglect the actual knowledge.
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About community and risk management
– The media landscape is littered with traders and influencers so intensively that it is difficult to tell a qualified specialist from a fraud. Still, how can you verify the credibility of a trading source or an influencer?
– The only way you can identify a profitable trader is if they share all of their trades live with entries, stops, and targets.
– Ultimately, is community interest a valid factor in estimating an investment object’s credibility?
– Community interest is NOT a reliable factor for assessing risk and credibility, since most influencers out there even fake stuff to scam their community. Beginners have to be careful and just think for themself. If something sounds too good to be true, it most likely is.
– Is there a single rule of thumb for calculating trading budgets? What optimal approach would you consider recommending to beginners?
– Trading beginners should just have a realistic approach to trading, which means that you consistently risk no more than 5% on any given setup, you try to grow your trading account to multiple six figures before even trying to make a full-time income, and you just have to be a lot more patient than you first thought.
Conclusion: is trading really this difficult?
I think that trading is simple, and most “gurus” out there complicate everything and give people a false mindset about trading.
Trading is simply not about getting rich quickly but rather building long-term wealth sustainably.
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Paul Osadchuk
Paul Osadchuk is a digital journalist specializing in cryptocurrency and Web3 topics. He writes for GNCrypto, Cryptoslate, and Foresight News EN, and maintains analytical blogs on TradingView, Binance Square, and CoinMarketCap. With over five years of experience in marketing and PR for crypto and Web3 companies, he has gained deep industry insight and expertise in crypto trading.