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Millions of people all over the world are trading cryptocurrency from home. People do it either as a part-time hobby or a full-time business. You don’t need to be a financial expert or have a lot of cash to start up a crypto-trading business.
Here’s what you do need: a computer (preferably with a medium-to-large screen), a small amount of trading capital, a basic knowledge of how to trade cryptocurrencies, an exchange to trade on, and a willingness to trade with tiny amounts of money until you learn the ropes.Investing or trading in cryptocurrencies can be intimidating at first - here's how to get started! Click To Tweet
There are all kinds of free educational resources online. Spend at least a few days reading about how cryptos work, how they’re traded, and the major currencies’ market values. There’s no need to be a financial wizard because trading cryptos is similar to trading anything else in most respects.
The key concept to understand is that cryptocurrency is not a “hard” asset. It’s a virtual currency that is not represented by cash or coins, although the term “coin” is used a lot.
Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are technically considered “virtual currencies.” These guys operate entirely outside the global banking system and have different exchange platforms. They aren’t regulated by governments and defy most legal efforts at confiscation and restriction.
If you can’t decide between Coinbase or Kraken for your exchange, this Crypto Head article goes into great detail. Knowing the pros and cons of each will help you make an informed decision before diving in.
Deciding What to Trade
There are hundreds of cryptocurrencies on the major exchanges, but that does not mean they are all traded in equal volume. Indeed, there are about ten cryptos that represent the vast majority of all trades. A few of the bigger names are Bitcoin, Litecoin, Ethereum, EOS, Monero, Zcash, Ripple, and Dash.
At a minimum, you should become familiar with these major players before starting a home-based trading business. The price of Bitcoin in US dollars is the most common way to represent the value of the world’s most actively-traded cryptocurrency.
Bitcoin is, by far, the biggest cryptocurrency in terms of value and daily trades. Many home-based traders work only with Bitcoin or a handful of the top-moving cryptos.
Tips for Beginners
After a few days of pure research about crypto trading, you’ll be ready to start your business. However, remember to be patient. Cryptocurrency trading is a fast-moving business, and it takes a keen eye to spot profitable deals.
Here are a few things that every new crypto trader should know before putting their own money at stake:
- Paper-trade for a few weeks after doing your research. Pick an online exchange, make fictitious trades on your own “paper,” and see how well you do. It takes a while to get the hand of crypto markets, but paper-trading will give you a feel for what the real thing is like.
- When you are ready to use your own money, make sure the exchange allows you to make small trades. For several weeks, don’t take any large positions in any cryptocurrency. Resist the temptation to think you have “mastered” the game after just a few days. That’s an easy way to lose your capital.
- Consider specializing in just one or two currencies. It’s easier to get the hang of trading and follow a few cryptos’ activities rather than trying to learn dozens of different price behaviors.
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Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.