Trading Bitcoins and Altcoins feels like river rafting. Crypto trading is fun and refreshing when you go upstream with an improved market understanding. However, when you go against the crypto-current, you might just see your hard earned money getting disappeared in no time. Don’t just get hooked on the idea of crypto trading, learn how to optimize your trades. Here are 10 cryptocurrency trading tips exclusively for the newbies!
Start With A Small Investment!
Cryptocurrency Markets are extremely volatile, major gains and immense losses could happen in the blink of an eye. Before you dive deeper into trading your favorite cryptocurrency, prepare yourself for you could lose all of your money if you don’t pay attention to this blog post. No matter how bright your next trade looks like, do not invest more than what you cannot afford to lose. Instead of putting a major portion of your savings into trading crypto, start with a small fraction as per your convenience and risk-taking abilities. Once your crypto investment doubles, cash out your initial investment and enjoy trading with the profits.
Take Advantage of The Arbitrage!
There are hundreds of exchanges trading your favorite cryptocurrency. It becomes difficult to know the cheapest price across different exchanges. CoinScanner.co helps you buy/trade crypto at the cheapest possible price in real time. The maximum price difference for a trade over the exchanges could be as good as 5-7 %, commonly known as the crypto arbitrage! Know how to get maximum Bitcoins from Ethereum using CoinScanner!
A Reason for Every Trade!
Always have meaningful reasons behind your trades. Do a fair bit of research about the latest developments happening around the crypto you’ve shortlisted. Join relevant groups on Telegram in order to better understand the market or rather see it from a different perspective. Amongst all crypto trading tips, remember one thing: you may not earn significant profit immediately. You should not rule out the possibility of having any profits even after countless days. You got to believe in the technology that drives the price of your favorite cryptocurrency. For day traders, keep your profits safe when the market is bearish.
All Eggs in One Basket is a Big No No!
Coin trading is interesting but one wrong decision and it’s a disaster. It will be completely foolish to invest all your funds in a single token no matter how much the growth potential. It may lead you into an unwelcoming situation surrounded by lost hope and despair. It takes a lot of time in order to recover lost money. As we know that cryptocurrency markets are highly volatile, we must distribute the risks over broad portfolios.
All Coins Are Different!
Cryptocurrencies have certain characteristic properties which make it different from the rest of the lot. You must research their patterns and movements separately without thinking about a correlation. The Nature of Bitcoin is quite different when compared to Bitcoin Cash. Occasionally, you may see two or three coins rising and dropping in sync with one another, this could happen when a news affects only some of the cryptos.
Don’t Make Sudden Moves!
Coin traders exchange crypto market insights and trading tips which may or may not be true. While you trade, your emotions should take a back seat. Don’t get carried away, learn to be patient. Don’t get trapped in “Fear of Missing Out” or FOMO as it has been a true money killer for the traders. When you acquire a coin only because it is rising high, you are soon bound to fall into the dump. No need to rush after slipping opportunities. On the other hand, avoid selling coins at early stages just because you’re running out of patience.
Avoid the Puff!
Crypto communities and forums make best attempts in order to have the correct information being shared within their channels. But sometimes, some people intentionally puff a coin just to make its price rise so as to sell them at higher profits. When trading coins, never ever go with such a sudden puff – it’s going to be a total catastrophe. Instead of following bits of advice, do a proper market research and get better at your judgments.
Know When to Cash Out!
It is very easy to ride on the train of profits, knowing when to get down is hard. It is an important aspect of Coin Trading – to successfully cash out with good profits. Cryptocurrencies fall faster than they move up. Never be late in cashing out your profits. Place automated sell bids at decent enough profit percentages.
A rule for managing risks while trading Bitcoins and Altcoins: Don’t look for huge profits, be content with smaller ones. Instead of waiting for peaks to arrive, think about making smaller profits.
Volatile Market Conditions!
Bitcoin is the father of other tokens and it is quite a volatile asset. Altcoin trading depends on Bitcoin. No matter how strong your Altcoin trading strategy is, it would simply not work when Bitcoin moves abruptly with volatility. When the value of Bitcoin rises, Altcoins lose their value. In such foggy markets, it is advisable to go for smaller profit percentages.
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