How to trade cryptocurrency for beginners online? If you decide to develop a trading plan, you should cover the asset allocation in the portfolio to reduce your exposure to risk. Keeping only one or two assets in your portfolio may be more risky. This way, you can distribute your owned assets by investing in different assets across multiple classes.

How to trade cryptocurrency for beginners online?
We will mention in the following lines how to trade digital currencies for beginners online?

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Avoid Fear of Missing an Opportunity (FOMO)
Fear of missing out (FOMO) is a common feeling among many traders and you should be careful how it affects your actions. Fear of missing out on an investment opportunity can cause you to abandon your limits and business plans and make reckless judgments.

We are now exposed to the vast amount of information available to us on the Internet, social media and other communication channels.

You can search and find good investment opportunities online, but you should always be aware of attempts to attract users with ulterior financial motives in order to promote their coins or projects, regardless of their actual value.

These promoters try to exploit traders’ fear of losing control and manipulating their emotions. If you start to feel like you’re missing out on an opportunity you’ve never heard of, take some time to research the project thoroughly before risking your money.

Online Cryptocurrency Trading for Beginners
Online Cryptocurrency Trading for Beginners
Understand the leverage
Borrowing money using leveraged trading or futures contracts for greater gains may seem like an attractive idea. But those gains come with the risk of liquidation and losing all of your capital quickly, as your losses are magnified as well.

Liquidation isn’t necessarily bad if you stay within your limits. However, losing more than you planned or risking too much money does not constitute responsible trading. Before you start using leverage, make sure you understand exactly how it works.

You may have seen the leverage displayed as “x10”, which means that your initial capital has multiplied tenfold. If your initial capital is $10,000 and you use 10x leverage, you will get $100,000 to trade, and your initial capital will be used to cover your losses. Once your capital runs out, the trading platform will liquidate your position.

Leveraged trading can be used irresponsibly in cryptocurrency trading . It has a much higher risk, so be sure to study the leveraged currency futures and USDT futures contracts carefully to fully understand the risks. Binance also protects new users by setting their own leverage to encourage responsible trading.

Use the cooldown period
To help traders use leverage responsibly, Binance has added a new feature on Binance futures that helps you control the amount you trade. You can use the idle period to stick to your trading plan and make sure that you only trade within your means. By enabling this feature, you can choose to lock your account for up to a month. Once the cooldown period has started, it cannot be undone until the timeout you set has passed.