Does it matter which cryptocurrency I trade?

[Jane Goodwin]

[Steve Walters]

No matter which cryptocurrency you’re planning on trading the first step you must take is buying some Bitcoin. Not only does this make sense since Bitcoin is by far the largest cryptocurrency by market cap, it is also the asset you must get started on most of the larger altcoin exchanges. An alternative to Bitcoin would be Ether, and it is even preferable since transaction times are faster and transactions fees are often lower. TIP: Avoid margin trading unless you are already an expert trader. Cryptocurrencies are already volatile, and by adding margin to the mix you could see your money disappear in minutes if you aren’t careful. It’s definitely easiest to get started by trading the top cryptocurrencies. That means when you first trade you should focus on the top ten, or maybe the top twenty coins listed on Coinmarketcap. This is because these coins will have good liquidity, and they should also have a good amount of information available. Also, since they are the top cryptocurrencies, you won’t have to worry as much about researching the viability of their project, and whether they might be a scam. Once you have a solid base in trading and analyzing cryptocurrencies, consider investigating some of the over 2,000 altcoins in existence. It still matters which ones you trade. Many of these 2,000 see little trading volume and even smaller price movements. Buy one of these and you could easily end up holding the bag, so to speak. Instead, you should find communities of like-minded people also into trading cryptocurrencies. Don’t follow suggestions found in these forums blindly, but use them as starting points for your own research. At the end of the day it doesn’t matter which cryptocurrencies you trade, but it matters how you approach your trading. Whether or not you like it, anyone looking to trade cryptocurrencies must have a solid understanding of how to trade, how to conduct their own research, and how to read price charts and technical indicators. If you have all of these things taken care of it won’t matter which cryptocurrency you trade because it will be increasingly likely that you’ll only trade the cryptocurrencies that give you the best opportunities.