Why a $1000 is enough to start making the first profitable trades on the crypto market and what you need to do to get started:
Many beginners start trading cryptocurrency with a small deposit ($100 — $1000 ). Let us explain what is the peculiarity of working with a small initial capital and give some recommendations to novice traders.
Start slow
The cryptocurrency market makes it possible to start trading with almost any amount, says Vitaly Kirpichev, Director of Development at TradingView in Russia. According to him, you can always find an exchange with loyal conditions for a deposit and an asset that does not require huge investments.
“In this market, it is possible to apply approaches that were previously available only to owners of large capital. You can create your own mini-portfolio or use a trading system according to the classical principles of safe trading, “ said Kirpichev.
You should not invest all your capital in one asset, do not trade with leverage, and also do not trade without a specific trading system.
$1000 is good enough to start and comply with money management and the principles of diversification, says Andrey Podolyan, CEO of the Cryptorg crypto exchange.
The futures market may be more focused on beginners because the minimum order volume on futures is usually lower than on spot markets, which means that more trading pairs can be taken into work. Novice traders should be trading well-known tokens, place stop orders and correctly distribute the working volume in the transaction so that it could be averaged.
Averaging is the opening of additional positions after the first transaction in order to reduce the average cost of buying an asset.
Consistent approach
If a beginner plans to enter the crypto market, then the ideal strategy for him would be a gradual and consistent purchase of digital assets. Following this strategy, it is necessary to choose a promising project once a month and invest $100 in it. During that time, the investor will end up investing 1200$ which could easily x5 over the course of the same year without much of a risk. Besides that you will learn the basics of trading and investing and will probably figure our of kind of trading style works best for you.
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