Bitcoin trading isn’t as easy as you think; it needs a proper plan, a trading strategy that is tried-and-tested, and patience. Beginners testing the waters can benefit from easy tips and guidelines on crypto trading. If you dive into the crypto waters without an inkling of what it is all about, you can end up losing a lot of money.
10 Must-Know Bitcoin and Crypto Trading Tips:
- Every trade that you engage in must have a definite purpose. Not all trades will yield expected returns; so, you must enter a trade only with a clear strategy in mind. You have to remember that the big fish are waiting for the small fish to make trading blunders.
- Have a trading plan when you decide to engage in crypto trading. This means you should know when to exit trades and take profits. Most importantly, you need to set stop-loss levels to minimize losses.
- The fear of missing out or FOMO is a very real threat especially in crypto trading. When you make trade-related decisions out of greed or fear, you end up making the wrong move. Pump-and-dump schemes, for instance, are dangerous because it makes the innocent trader succumb to the pressure and sell of his assets. The whales are simply waiting for this to happen.
- Managing risks is a key part of crypto trading. If you want to be profitable you have to look for smaller gains which will add up to make a big difference. This means managing risks wisely across the entire portfolio. For example, you must not invest a lot of money into a single asset.
- Consider executing crypto trading through automated trading platforms like Bitcoin Billionaire, which will be able to perform trades on behalf of its users. However, make sure you take a test drive on the bitcoin billionaire app and read the reviews before you get started with the app.
- The volatility of the Bitcoin is something that you cannot disregard. Most altcoins are traded against the BTC instead of the fiat. Earlier, whenever the Bitcoin prices came down, the altcoins would go up. But this correlation has become slightly blurry since 2018. Since conditions of trading remain unclear, it is best to choose close targets and set stop-losses. Read more to learn how to Buy Bitcoin with iTunes Gift Card
- When trading cryptos like the altcoins you need to remember that these lose their values over time and bleed out slowly. So, if you own a large number of these altcoins for the long-term, you should make your choices with caution. Altcoins that have bigger trading volumes and stronger community backing are more likely to survive.
- Today, many projects are organizing crowd-sales to allow investors the chance to buy shares of the projects’ tokens for discounted prices. Investors are open to this because they can make decent profits later on. But, at the same time, not every such project will be lucrative. Some even turn out to be scams. So, when you get an opportunity to invest, remember never to put all your eggs into one basket.
- When you make too many trades, you have to pay more fees. So, it is better to post new orders as a market maker and never to buy from order books. Moreover, refrain from trading unless conditions are optimal and know when the time is right to exit a trade. It is important ever to trade with emotions; your goal is to make more money.
- It is important to ignore the noise and take decisions after researching the long-term trends that is possible by reading financial journals, not the daily newspapers. Often rumors get the better of traders and you can end up making a wrong call.
- Make sure you have a long-term goal because you should trade for a reason. So, invest only what you can afford to lose.