Sell it that evening if the price goes up. It’s more like flipping currency than saving in a bank account. Crypto prices move fast, and if you’re not paying attention, losses can happen just as quickly as profits. Beginners can still try this approach, but it’s essential to start small and treat it like a skill to develop over time. Unlike a long-term holder, you’re not concerned with the coin’s future potential-just whether you can earn a profit from the current price movement. This strategy can generate quicker gains but comes with higher risk.

There are two main – visit the next internet site – ways to approach the crypto market: long-term and short-term trading. Think of it like using a bank account: are you saving for years, or moving money around daily? Don’t mistake these for long. Your strategy depends on how often you want to trade, how much time you can commit, and what kind of risk you’re comfortable with. Short positions–this is a different concept. Long-term trading means buying crypto assets.

Holding them for months or years. It’s similar to investing in stocks or real estate. You believe in the project behind the coin, such as Ethereum or Bitcoin, and you expect it to grow in value as adoption increases. The goal is to wait for the value to increase significantly over time. If you choose this strategy, you might trade Bitcoin once, then hold onto it while ignoring short-term price swings. Many beginners choose this method because it doesn’t require constant monitoring of the crypto platform.

USD Coin (USDC). A stablecoin that doesn’t fluctuate much. Good for learning how trades work without heavy risk. That starts with liquidity. What Makes a Good First Investment? If you’re relying on a tiny exchange or struggling to fill an order, you’re already adding risk you don’t need. Your first crypto trade should be simple to execute and easy to manage. A coin that trades on two or three major platforms with consistent daily volume gives you the flexibility to enter and exit without delays or price slippage. Equally important is clarity. Solana (SOL). Popular among newer traders thanks to its fast transactions and growing ecosystem.