People who want to trade on cryptocurrency should watch out for basic rules. You can make money or lose less when you follow these golden rules. That is better than losing much money. I recommend you to read heedfully the following rules in cryptocurrency trading.
Crypto investment should be made through trustworthy platforms. If you use an insecure platform, you may lose all your money. Before cryptocurrency trading anywhere, please research the platform and find a safe one.
2- Small Trade
Supposing that you are a newbie in the crypto field and have less information about crypto trading. On the other hand, you want to trade or invest in coin projects to make money. At first, you should aim for small gain via small investment. After you get more experience in trading, you may invest with big capital for more earnings. You keep in mind that “the bigger they come, the harder they fall”.
3- Diversity of Investment
Again suggesting that you have an investment budget that is big or small for cryptocurrency trading. The most important thing is you never invest in one crypto with all your capital. You can separately invest in different crypto for a balanced investment. Remember that while you can make much money from one crypto project, you can lose it from another.
4- Afford to Lose
As an investor, you should know yourself, and what to do in different scenarios. It is significant to know having enough crypto trading experience. That’s why you should never invest or trade with money that you cannot afford to lose. This rule is necessary for both your wealth and health.
5- Beware of Fomo
Cryptocurrency trading is all about emotions. FOMO is the acronym for the fear of missing out. You all have seen some cryptocurrencies making many gains in a short period -sometimes even within minutes- or versa verse. I especially recommend that when the token price is pumped, you shouldn’t jump in cryptocurrency. Because that this is the getting profit time. Many investors choose to take profit when the price is pumped. That’s why if you buy crypto at a high price, it isn’t hard to predict that you will lose your money. Investors must bootle up their emotions. In conclusion, they should be calm and get the correct decision whether buy or not.
6- Money Management
We all must have information about money management. Especially if you want to be a good trader, you should be a good money manager at the same time. Money management is all about trading planning. I mentioned above that you should start small. Never put into cryptocurrency trading more than %5 of all your funds. Not use it all at once. You should note down entry prices and sell prices because we all are forgetful. When you make mistake, never be sad. You have to learn lessons from mistakes if you want to succeed. And do not hope to earn every time that you invest. To gain and lose, both of them are in the nature of this work.
7 -Technical Analysis
Having technical analysis is one of the most important milestones for crypto enthusiasts. If you want to be a successful trader you need to learn the basics of technical analysis, reading charts, and different trading interfaces. For this, you can get paid courses about basics technical analysis or also research from open sources. Firstly you should start learning about RSI (relative strength index), trend lines, moving averages, upwards and downwards channels, wedges, cups, and handles, etc. On the other hand, if you are an altcoin investor, these analyses may not work out in the altcoin market. Glossary of Key Cryptocurrency Technical Analysis Terms You Need to Know is here. You can check it.
8 -Take Profits
Crypto traders must know that when will get a profit. Profits are always better than losses. In the crypto market, the token’s value may quickly increase or decrease because of volatility. When your assets are starting to increase in value, you should get some profits. If you want to feel relaxed, when your assets reach a good point, you may take both main investment and some profit. In this way, you may wait for more profits and also you don’t have any anxiety.
9 -Do Not Believe Rumours
Rumors are very dangerous in this crypto space. You may lose your trading funds because of fake news. Only for pumping the token’s value, some people can share fake news. If you heard any news about the crypto market, the first thing is you must do is research it is fake or not. At the same time, you should keep an eye on the global financial system and Bitcoin. Because Bitcoin is the mother of all crypto coins. All the system is affected by the chart of Bitcoin.
10- Do Not Take a Loan or Contract Debts For Investment
If you want to invest in crypto, you should have enough money for that. You can not trade with insufficient money. We all want to make a lot of money but this is not always possible. In these market conditions, it is possible that you can lose as much as getting profit. Don’t forget that; you may lose all funds. That’s why you should not take a loan or contract debts for cryptocurrency trading.
Volatility is called the speed or degree of change in the value of token prices. Price movement is also known as volatility. The Crypto market is open on 7/24. That’s why all-time there may be volatility in the market. When you are sleeping or resting, you may lose your funds. Most of the time you need to worry about volatility in cryptocurrency trading. If especially you are an altcoin crypto trader, you must be ready for sleepless nights. Capturing the right time can be possible like that.
Consequently, there are eleven rules mentioned above for cryptocurrency trading. You can add extra rules that are suitable for you. Investing in crypto is very hard and includes high risk. Rules only will show you the way. The main key to the achievement is your experience and information about the crypto. Keep in mind that before investing in any project, you should do your own research.