Are you interested in learning the five rules of cryptocurrency trading? If so, you have come to the right place. This blog post will discuss the basics of trading cryptocurrencies and provide you with some tips to help you get started. Cryptocurrency trading can be a lucrative venture, but it is important to remember that it is also risky.
If you are not careful, you could end up losing a lot of money. That being said, if you follow these five rules, you should minimize your risk and maximize your profits.
Let’s take a look at these rules.
Rules of Cryptocurrency Trading
Use a trustworthy platform
There are many options out there when it comes to picking the platform that you will use for cryptocurrency trading. The first thing you need to do is decide whether or not your efforts will be best served by starting your blog or website.
If you would rather choose one of the existing platforms to grow an audience and follow other bloggers and influencers in this growing industry. Bitcoin Up is a top trading platform that you must use for trading.
Don’t take very big bets
If you want to make a killing from cryptocurrency trading, make sure you don’t bet too much. Go as small as possible. Start by doing the least amount of trading possible and increase your activity after getting more experience. If you spend all your time watching coins and trying to predict their daily movements, for instance, you run the risk of putting too much money at stake in an immature market.
Also, according to Mark Douglas’ “The Disciplined Trader,” overtrading is one of the primary reasons traders fail to be profitable or consistent. So avoid trading impulsively or frequently if bitcoin has not yet bore fruit for you.
Be ready for extreme volatility
Just as with any market, the cryptocurrency market is a volatile one. To say that cryptocurrency trading is risky would be an understatement. The essential rule you must follow is to be ready to handle volatility.
Diversify your cryptocurrency portfolio
When you first start trading in the cryptocurrency market, it is important to understand that you must diversify your portfolio. You should never put all of your money into one type of coin; instead, use a percentage system and invest only in coins that meet certain criteria.
Focus on bluechips
Most cryptos follow the same pattern after an initial pump: they slowly bleed out until they either die or gain traction again. This is especially true for altcoins and ICOs, and that’s why it makes sense to invest in bluechips: coins that have been around for a longer time, don’t particularly care about marketing themselves, and focus on improving their technology.
These coins generally show more stability than your average crypto and, simply because of their existence alone, are here to stay in one form or another. One can argue that buying bitcoin was also risky in its very early stages. Still, in hindsight, the massive gains outweigh any initial fear/uncertainty/doubt felt when investing back then.
The Bottom Line
The cryptocurrency market is still relatively new, so many opportunities to make huge returns on your investments. You can turn a few hundred dollars into over a million in just a few years. However, you’ll need to know how to play the market, which currencies to invest in, when, and what NOT to do. This article has given you five important tips that will help guide your trading decisions.
Rules of Cryptocurrency Trading is a Feature post