Every day we hear bits of information on cryptocurrencies. Whether it’s your cousin who read it somewhere or articles you find scattered online it seems like the perfect time to invest. But maybe know nothing about it or someone who got scammed. Maybe you got an email telling you it’s great to invest in crypto. We even have astrologers predicting Bitcoin and Ethereum in 2021! According to experts, the hype is still real, and it’s going to get even more significant in the next year and a half.
Everyone wants crypto trading tips and tricks, but they are afraid of actually learning what it has to offer. It seems like it’s easier to keep repeating what you’ve heard: “It’s great to invest now!,” or “It’s a scam!.” Do you want the blue pill or the red pill? The solution lies in rolling on your sleeves and getting to work! What we mean by that is researching different crypto trading tricks and tips and what they exactly mean. Below, we will give you tips people often forget them or they are so obvious they ignore them. Plus, it will save you from significant financial mistakes. Trading isn’t gambling, and it should never be if you are serious about making an income, so let’s make the most out of these crypto trading tricks and tips.
Having a Goal
What do you mean, what do we mean? When you first heard about Bitcoin, did you think about the goal of investing in it or did you think it’s something you should invest in because everyone wants to? Whatever your trading strategy is, a clear plan is number one for staying consistent and successful. You will learn not to rush into trades if you have one excellent crypto trading trick. Many get scammed because they didn’t even check the company or the broker. Instead, they rushed into giving their money blindly. Patience is the key in the crypto trading game. Various investors also control the crypto market, and they are all patient, and they will instead hold off a trade than rush into something that will result in loss. This can keep your profit safe, rather than risking too much for the sake of trading.
Make Stop Losses Useful and Set Profit Targets
Stop-loss is a trading term you should learn more about if you haven’t until now since you will come across it a lot in trading. Whenever we enter a trade, we need to know when to get out, and it doesn’t matter if we are making a profit from Bitcoin. This can help you with discipline and prevent you from additional losses. This skill is tough to obtain, so be sure it will need lots of time until you perfect it, but it certainly doesn’t mean you should give up on it. It’s crucial to choose the stop loss when you are not emotional, stressed, or angry. Don’t trade more than you are willing (or have the freedom) to lose. It’s better to stick to a minimum profit than go big and barely pick up the pieces.
Fear of Missing Out
FOMO isn’t only connected to teens and young adults who think they miss out on everything that is happening when they need to stay at home, study, or go to sleep early because of work. It’s common among traders which also leads to impulsive decisions. Keep in mind that Forex operates 24/7, so it really shouldn’t worry you that you will miss an opportunity for a great trade. Many newbies will fall for the moment when the chart is full of green candles. This is where another crypto trading trick lies: don’t do it! It usually means investors bought for a much lower price earlier. This is when oversupply happens, and losses start happening. You can certainly be okay with missing out on that one.
Experienced traders will rarely go for massive profits. We briefly explained why above; it’s better to go steady and be patient. Thus, you will slowly build up your income and profit. Being regular whether you are trading Bitcoin or any other crypto is far more effective in the long run. And that’s what you want if you decided on your goal, which was our number one crypto trading trick. You want to be sure your profit will accumulate without you being anxious every day. You can, for example, experiment by investing in a less liquid market, or several. Consult with an expert who is a certified broker, and see what aligns with your trading plan.
Underlying Assets and Volatile Market Conditions
Current market Bitcoin prices determine most of the prices of altcoins. Bitcoin is the first digital currency, and it’s still the most important one. It’s volatile and relative to fiat currencies. For example, whenever the value of Bitcoin rises, the altcoin value will go down. The same goes the other way around.
Reconsider if you Should Buy It
The clearest example would be buying Ripple instead of Ethereum, just because it’s cheaper. This decision isn’t based on any strategy or goal, but rather on how affordable it is, so we can’t look at it as an investment. If you are serious about investing, you should pay attention to a specific crypto’s market cap rather than its “affordability.” Remember, the higher a coin’s market cap, the better the investment chance.
Altcoin Investors Crypto Trading Tricks and Tips
Since there are many altcoins, many of them are bound to lose their value after a certain period. That is why our crypto trading tip is to first understand you should be careful of how long you hold a specific altcoin. One of crypto trading tricks is the daily trading volume – the higher it is, the better the asset is for long-term investments. If you are persistent about long-term investments with cryptos, Ethereum (ETH) could be the right for you. Still, continue observing charts of any altcoin you have and pay attention to any sudden price spike. You will be able to catch a pattern after a certain time and see if you should buy or sell.
Don’t Get Stuck
Any investment can be unpredictable, but cryptocurrencies are even more. While you can gain a lot, you can lose it fast. That’s why we like to emphasize the importance of diversity or instead invest in more than one crypto. That’s another page from the crypto trading tricks and tips book for you! All jokes aside, through diversification you can lessen your chance of losing too much. We mentioned altcoin value depends on the importance of Bitcoin – Bitcoin against the USD. If the BTC loses against the dollar, all altcoins will lose their value and vice versa. That is why diversifying is a sound decision every trader makes. This means you can keep Bitcoin as your base asset but don’t underestimate or completely forget about the dollar. Try investing in different areas to reduce your risks, whether investing in stocks, mutual funds, or something else.
Our Final Crypto Trading Trick and Tip
Back to number one – setting your goals by placing sell orders! What you need is to make sure you set your revenue targets. You can do that by placing sell orders because there might be a moment when your order price will be met, meaning you will earn exactly what you wanted and how much you needed. Sell orders are great because they have fewer transaction fees. Why? Because they are considered the market “markers.”
Think about your goals, devise a trading plan, and go slow with it. Best traders have immense patience, and they exercise this skill throughout analyzing charts and waiting for the right moment. Experimenting on a smaller scale is also recommended as diversifying to lessen your risk. We hope you embrace this journey and take it as an investment rather than a quick way to make money because it isn’t. As we said, investing is not gambling – it’s a way to earn income by being smart about it.