The cryptocurrency market is volatile. You need some measure of expertise before you can trade in cryptocurrency if you don’t want to fall into the sensational losses you must have heard about in the news. You don’t have to fail first before learning, as with the right amount of information, you can avoid the pitfalls of trading cryptocurrency. There are few places to get the free information you need to make informed trading decisions. The good news is you would get the free information you need here. All you have to do is be attentive as you need it to become a profitable trader. Enjoy the read.
There so many stories of cryptocurrency loss that can cause you to develop cold feet about cryptocurrency, and rightly so. This fear caused by other people’s failure shouldn’t deter you. However, it should instead spur you to trade cautiously and smartly. A loss of cryptocurrency coin can be devastating. It can also cause financial ruin if all your investment is in a single place. These tips we would give you are like safety guides, and they are going to transform you into a trading master who will always continue to be on the green side of trading.
Just like stocks, commodities, forex the bitcoin is a new currency. It is popularly known as cryptocurrency. It is beyond the geographical boundary. However, note that it is not regulated by the government. What you need are a computer and an internet connection.
Bitcoin is also known as BTC(1 bitcoin equals 1 Million bits). Alternative cryptocurrencies are-
XBT and BTC are the same and known as Bitcoin. Bitcoins can be exchanges on-
- Mobile recharge
- DTH top-up
The advantage of Bitcoin is that the transaction cost is very low(just like Paypal, credit cards or online transactions).
Enter Each Trade with a Purpose in Mind
You might squeeze your face and wonder the necessity of this. This tip is the foundation to preventing you from entering any lousy trade. Before you get into a crypto trade, form a purpose in your mind and carry it firmly. With your goal firmly in mind, you also need to know that you can’t win all the time with crypto trading. There are times you would lose. What you want is to win more than you lose. It is even better for you not to gain than to lose.
You have to learn to be patient with your trade. Don’t be rash and rush headlong into trading. Remember your purpose. The cryptocurrency market controllers are very patient people waiting to make their money from your loss. Learn from your past mistakes, don’t set unrealistic objectives, and don’t be shy to admit some trades aren’t just worth it. Experts at dissertation help believe in relaxing the mind and engaging in soothing acts before trading.
Don’t Be Pushed By the Fear of Missing Out.
Don’t be overwhelmed by the fear of missing out, that you will lose sight of your focus. You might see people making incredible profits from crypto bumper coins, and you can swear you hear the green candles beckoning you to join in on the fun. Don’t fall for the trick. The market controllers are goading you and setting you up for a loss. You see, they have gotten their coins at a lower cost, and once those number coins saturate the market, there would be an oversupply of coins. The excess causes the coins to drop in value—cue the red candles and the loss that sets in.
Always use Stop Losses and Set your Profit Mark
Stop loss is usually an option on the trading platform, limiting your losses. Once you set your stop loss, if you end up losing, you won’t lose any further once it reaches the mark you set. It’s a way to cut your losses.
There is also a version for profits too. You can set your gain to a minimum mark that your assets are liquidated once your trade hits the level. Adhering to this tip is a way to stick to your purpose and not allowing greed to derail your trading ambitions.
Slow and Steady Wins the Trade: Build your Portfolio Slowly but Surely.
You have seen how the fear of missing out can derail you in the first point above. We reiterate, don’t let people making massive profits pressure you into doing the same. Your goal is to make profits while minimizing your loss risk. Stick to your purpose and make your profits in bits. Your risk is lesser that way. Remember, the pro traders are never swayed by massive profits. They have a vision of how they want to trade and stick with it.
Low Coin Price Doesn’t Translate to Profit.
Amateur traders always make the mistake of rushing to buy a coin because it is cheaper and easily affordable for them. They make a mistake in equating a coin’s cheapness to its value on the market. Choosing to buy a coin is not about how cheap the coin is but its market cap. A coin could be expensive but commands an enormous value on the market, while a cheap coin, although easily affordable, has little to no Investors trading in it. Go for coins with a higher market cap as they are more profitable to deal with.
Don’t be a One Trick Pony. Always Diversify your Investments
Cryptocurrencies are unpredictable, volatile investments. You can make a lot of profit, and you can lose it all in a bit if you aren’t careful with your trade. Cryptocurrencies have made many people rich. It has also caused people to meet their financial doom. When you are making your profits, diversify into other investments.
Your goal is always to make a profit. Now that you have made the profit, what do you do? You find other places where you can put your money and have it work for you
Trade When you are Sure you have Mastered the Above
Don’t be hasty while trading. You will attain your goal of getting profits. Abide by the above tips, and you are going places as a trader. Emotions are of no use when trading cryptocurrencies. Objectivity is key.
Trading does not have to be something you associate negativity with. Although the tips we have given you above are not exhaustive, they will help you become a better trade than you were.