The internet is full of tips, advice, and investment rules for trading your digital currencies, but truth is told, no one in the world can give you a complete strategy. The crypto market like most others is far too dynamic and unpredictable. Do not blindly trust people when they tell you which cryptocurrency to buy. Always do your own researches as English speakers like to remind you on various trading forum.
After reading this article, you will have a better understanding of crypto trading, and you will know how to improve your chances of making a profitable Bitcoin investment. In case of crypto trading this is very important.
Start with a small investment
One of the first rules for any form of trading or investing is to never invest more than you can afford to lose. The market is extremely volatile, which means that large price fluctuations can occur within days, hours and sometimes even minutes. It is safer to invest a very small percentage of your money when you start out. In this way, you will be able to familiarize yourself with the market.
When you get into Bitcoin trading and other cryptocurrency trading, watch out for trading spikes. One possible scenario is that many people deposit a huge amount of money over the weekend, which will not be credited to their accounts until Monday. If a large percentage of these people buy a lot during the day, this can temporarily significantly increase the value of Bitcoin and other cryptocurrencies. When this happens, don’t be afraid to miss your purchases FOMO in English to avoid buying at too high a price.
Diversify spread your investment
Don’t put all your eggs in one basket. By diversifying your assets into different cryptocurrencies, you can reduce your risk because cryptocurrencies each have different cycles. You can also look into other investment options like gold, silver or the traditional stock market. Another good idea is not to just spread your investment across different assets, but to smooth them over time. This means not buying or selling all at once, and doing it in smaller increments.
Keep track of market movements
Find out by keeping track of community developments and fluctuations in the crypto market. Check the real-time value of digital currencies on our site.
An index for alt-coin trading
Look for coins that have a large volume of daily exchange and that have an active community. Check out the play or project on popular social media like Twitter and Facebook. Some communities also have discussion groups sometimes unofficial on Telegram, Slack or Discord.
Don’t make rash decisions
Emotional trading is by far one of the worst things you can do. The fear of missing your purchases or FOMO can be a real killer, especially when you see that a coin rises quickly and you buy at a high price, then it drops and you sell at a loss in panic.
Patience can be very beneficial, unless you have a good reason based on your own research to believe that it is a good opportunity to buy or sell. This brings us directly to the next point.
Don’t try to time the market
In trading, buy at a low price and sell at a high price. This is often easier said than done, it means that some people through hasty decisions and panic above invariably buy high and sell low.
Monitor the creation of new block-chain projects on the market. Some companies offer concrete solutions in various fields, but many of them sell nothing but hype and it is sometimes very difficult to distinguish them. Never invest your money in tokens without doing the proper research. In most cases, you will buy promises.