Crypto trading is not about luck. It is both a science and art where you need to base good results on basics, good practices, and experience. It takes discipline to make money as a crypto trader, and this includes following rules. A secure trading website to try as a beginner is the Bitcoin Prime platform.
#1. Invest an amount where you can afford to lose.
Engaging in crypto trading is a risk like the same way with other kinds of investment. Even if all things are done right, traders might still take a loss.
The Bitcoin Crash and the Great Crypto Crash in January 2018 has shown an unprecedented boom in the previous year but followed by a fall in the Bitcoin price by almost 65% in the first month of the year. Emotions were high with people smashing laptops, breaking monitors, and a lot of high blood pressure. The crypto market is volatile and unpredictable at times. Thus, you should only invest an amount where you can afford to lose and not more!
There is no 100% guarantee that you will get your money back when involved with crypto trading. Losses are not only the result of other people’s better strategies but can also be influenced by government regulations, bugs, or hacks.
Before engaging in any investment, do research and assess your current financial situation. Do not make drastic decisions such as taking out a mortgage, using a credit card, or applying for loans if you cannot afford to invest. It is best to wait for the financial situation that will allow you to invest.
#2. Do not invest in only one trade.
Remember not to put all your eggs in one basket when it comes to investing. It is true that the greater the amount for potential gain, the greater the amount for possible loss. Therefore, it is better to avoid losing money if you diversify and invest in numerous cryptocurrencies.
For instance, the significance of diversifying your investments would be from this scenario. Different cryptocurrencies have varying degrees of success between January 2016 and January 2018. Corgicoin increased by 60,000 times, while Verge increased by 13,000 times. However, Bitcoin only jumped by 34 times. There would be significant gains if you invested in Bitcoin; however, if you invested in other coins, you can also have impressive gains.
#3. Partner with a dependable broker.
If you have a reliable broker, then you have a greater chance of succeeding in the trade. There are hundreds of online brokers who offer crypto trading. It would be best if you were meticulous when it comes to choosing or partnering with a dependable broker.
Take note that your hard-earned money will be used; thus, you must be able to depend on a reliable and genuine broker. You can ask if your broker is regulated as these people provide excellent customer support, best execution prices, and best digital security measures. You should note that if you are a newbie trader, your broker must have demo accounts and learning resources to perform crypto trading.
With all the available online brokers, you must research to find a reliable broker. You can check for his recommendations and reviews from other experienced traders. If you find that your broker is sketchy, then find another one as you might lose a lot of money.
#4. Trust your gut.
Our bodies tell us if we are making a right or a wrong decision. Trusting our instincts can be a sign that what we are doing is right. When you are about to invest, do not go with the trend or listen to other people. Some traders are honest in helping other traders when it comes to strategies. However, some might take advantage and use their expertise when it comes to trading to exist safely. Research, research, research, and trust your instincts.
Crypto trading requires a solid financial literacy that a trader must have . If you are a newbie, you must be diligent when it comes to making decisions. Therefore, this article serves only as a guide and not financial advice.
Disclaimer: All the information provided above is merely for the purpose of your knowledge. We do not deal with any type of cryptocurrency trading. Therefore, we recommend doing proper research and learning before investing your money in cryptocurrency trading.