The edge of the youth in any industry, including crypto trading, is the abundance of time. Students have more freedom to learn more about the market and make trades with potentially large gains.
As a matter of fact, a percentage of college students already trade in the crypto market today. Guided with techniques such as crypto arbitrage, some are already earning far more than how much a regular tertiary student can make.
If you are a student looking for a shot in altcoins, trades, and the like, keep reading.
Getting Started: Preparations Before Trading Crypto
Do these preliminary steps first before delving deeper into the market.
1. Create an Email Solely for Crypto
Separate the email address you use for crypto and for your personal life. This is to ensure cybersecurity as you hop into the market. Protonmail guarantees high-level security for the address that you can use when trading and buying.
Part of this is setting a strong password. Use a combination of random letters with random capitalizations mixed with random numbers. You may also opt to use two-factor authentication to even double up your account’s safety and security.
2. Choose an Appropriate Crypto Wallet
Select a crypto wallet that is well suited to your needs and goals in trading. The most popular types of wallets are software wallets (hot wallets), hardware wallets, and paper wallets.
Hot wallets are considered the most vulnerable type, as these are connected to the internet (e.g., web wallets, mobile wallets, desktop wallets). Hardware wallets can be pricey, but they provide medium security. Paper wallets are considered the most secure since they are not connected to the cloud, but they can be highly inconvenient.
3. Select Which Currency You Will Trade
For beginners, it is advisable to start with popular and major currencies such as Bitcoin Cash, Ripple, Litecoin, and Ethereum. These have been longstanding across exchange platforms and are relatively stable, despite the innate volatility of the market.
4. Formulate a Trading Strategy
Never make an arbitrary decision if you want to earn, or at least minimize potential losses in trading. There are many advantageous mechanisms you can capitalize on, including smart trading platforms and automated trading bots.
A well-known tactic is cryptocurrency arbitrage, which follows the principle of exploiting market inefficiency and inconsistency. It is about using the different prices of exchanges to your advantage. It takes precise timing to make trades that can generate high-yielding returns and profit.
Mechanisms to Improve Your Trading
Traders cannot be rash when deciding to buy and sell on an exchange. Every move must be smart so as to evade losses and alleviate risks. Thus, traders make use of trading tools that can aid them in their transactions, like smart trading platforms, bots, signals, and portfolio trackers. Fortunately, there are plenty of platforms that have them all.
Smart Trading Platform
Consider a better manual trading experience through its Smart Trading Platform. Its design should uphold both functionality and simplicity. Users should be able to efficiently plan trades from start to finish. Also, look for the option to split targets to divide volumes by target.
Other functions should include enabling trailing options and multiple order types (i.e., limit orders, market order, and conditional order). TradingView Integration Charts can aid users to easily view the market activity and price of leading coins.
Bots remain a top choice for beginner and experienced traders alike because of incredibly powerful and intelligent trading bots. Users can connect bots to trading views and can automatically trigger commands from there. This is highly convenient for students who do not have the time and experienced judgment to make manual trades.
Developers continuously improve and develop trading bots by the day with the support and creative ideation of a vibrant community.
Considerations Before Engaging in Crypto Trading
You might be overwhelmed by excitement, but here are some things to think about before getting ahead:
- Only use the money you can afford to use. Instead of allotting extra money to senseless parties and fun, perhaps you can invest your disposable income into something more productive like crypto trading.
- Be mindful of your cybersecurity. The crypto market is decentralized, so you have to independently sort your issues in terms of security and protect yourself from theft and fraud.
- Use trading tools. Make use of trading tools, as they can greatly jumpstart your trading experience — both manual and automated.
The future of trading is digital. It is good that more and more people make themselves aware of how to use and operate it today.