Turning adversity into opportunity is an important skill for any trader.
With self-isolation giving many of us extra time, now is a great opportunity to learn how to buy and sell digital currencies.
Better yet, with lots of online forums around to help new starters, learning about crypto is a brilliant way to stay social.
Step 1: Set up an online wallet
A good place to begin is opening an online wallet that lets you convert your fiat currency (GBP, EUR, USD etc) into cryptocurrencies. Doing this is really easy, especially with Skrill.
A Skrill account lets you send, receive, buy and sell more than 10 different cryptocurrencies.
Step 2: Understand what you’re investing in
Now that you’ve set up your wallet, take some time to explore the world of crypto.
With many different digital currencies available, each with their own unique history and applications, it’s time to read up as much as you can about the various currencies – and maybe discover a few new ones.
Only invest in what you can afford; keep amounts small as you’re starting out.
Step 3: Stay safe
Remember to keep any passwords and login details that you set up private and secure.
With Skrill, you’re protected by leading anti-fraud technology that keeps your money safe. Your crypto stays in our custodianship, so you don’t need to worry about taking any extra steps.
Step 4: Decide your strategy
Learning to read price charts and understand market analyses are useful skills to have for buying and selling crypto.
There are so many strategies out there, but when starting out it’s a good idea not to put all your eggs in one basket. Investing evenly across a few different cryptocurrencies is a good place to begin.
From there – as you learn to read the charts and understand how the markets work – you can start trying out different approaches.
Step 5: Get to know the price movements
Although there’s no concrete way of predicting price movements, there are two main ways to analyse them: fundamental analysis and technical analysis.
Don’t let those names scare you. Fundamental analysis simply concerns the underlying effects of an economy and technical analysis looks at previous trends and movements.
Cryptocurrencies are complex products with high price volatility. They are unregulated, without consumer or financial protections. Only risk what you can afford to lose.