Trading Crypto? What To Consider


You are a trader. You are engaged in crypto. The investments are out there in the crypto wallet, waiting for you to start. The best cryptocurrency trading strategy is already chosen. Today’s article is all about the tips – how to use the market features to your favor and not to lose all your money in the process. The tips’ importance cannot be overvalued due to constant assets volatility and the new rules merging on this 200+billion worth market. Years before, mostly professional were engaged into this activity, but the rapid increase in cryptomarket capitalization had seen swarms of newcomers flow into the trading, trying to get their piece of the digital gold.

No matter whether you are a novice trader or simply want to buy some crypto for further investment purposes, then this article could come in handy. By following it, you can avoid obvious mistakes and prevent fatal losses.

Rule 1. Going against the crowd is not wise Unlike some other activities, it is not applicable here. Watch out for market trends carefully – if the largest traders on the stock exchange are aimed for selling coins, or there are persistent rumors that one or another crypto asset is steadily declining, don’t hesitate to consider this tip and not take actions against the market trends. There is no need to buy if everyone is selling coins when the rate of the particular crypto asset is clearly at its peak. You can simply lose all the money instead of achieving benefits.

Rule 2. Do not put your last money in the game If you have quite small savings, you should not drive all the amount on deposit. Trading on the stock exchange is always a risk, and there is a chance of losing all those savings.

Besides, your play with the last available money can’t be deliberate, and you should know that nervousness leads to negative consequences in this case.

So, think of it as the primary strategy in the market – trading with a cold mind.

Professionals are mostly advised to trade with the amount that does not exceed three-day earnings. Losing this money will not cause shock and will not be the reason for negative life changes. Rule 3. Buy at a cheaper rate, sell at higher This particular tip may sound odd and obvious; however, we do observe that many new traders getting to cryptocurrency exchanges do not even understand this and trade the wrong way.

Naturally, it would be definitely unwise to acquire the Bitcoins at a peak price of more than $ 20,000 per coin. However, nowadays, when it fell like three times of its peak price the investment is more applicable.

Moreover, putting it simply, the currency in the “red” zone is worth buying, and selling is more profitable in the “green” zone. Such a simple cryptocurrency trading strategy on the exchange can save you much money.

Rule 4. Use the proper tool for efficient trading The professionals utilize their financial experience background and extensive knowledge to prosper on the market trading. However, what can a newcomer hope for, making his first uncertain steps in a colossal crypto assets world? He surely does need some help.

The right thing to do is the make robot trade for you in this case. There are already successful offerings on the market, one of which is the The project solution utilizes the automated trading algorithms which result in earning higher profits with reduced risks. The platform also saves user’s time and helps to increase savings with help of robotic trades – the machine makes a lot fewer mistakes than human. Rule 5. Forget about scalping if your savings are insufficient Scalping is one of the most popular strategies, which is used by both beginners and experienced professionals. However, you should not use it if there is low coin volatility on the cryptocurrency exchange or there are no sell orders available. Your bet will simply not plays off, and you will find yourself with an empty wallet. Rule 6. Do not use the full amount of the deposit at once All right, you have established your first account, and it is not very substantial. Perhaps, you’ve decided to purchase a single asset with it? Well, this way you are no longer counted as a trader and simply become a usual investor. When you poured all the savings into one asset class, you won’t able to “play the game” and will be reduced to the good old “holder” tactic. That’s not the smart thing to do. Rule 7. Divide and conquer! Another obvious thing to be told is that to succeed in crypto trading, your existing deposits must be split into specific parts.

It is up to you to choose the amount; however, the usual scheme is: 50%, 15%, 15%, 10% and 10% or 40%, 20%,20%, and two 10%s.

The most considerable amounts are better to be invested in the leading cryptocurrencies – the “Big Five”. Other purchases must be done due regarding the current trends.

Source: IrishTechNews