7 Crypto Trading Rules for Beginners
Crypto has been in great demand in recent years. Some people even have become rich while trading it, but the majority of them tend to lose more than they gain. To avoid mistakes, being a beginner in this field, you should explore some tips regarding automated crypto trading.
Monitor the market
This market is characterized by volatility, for this reason, a person, who is engaged in crypto trading, should constantly monitor all changes, take profit, buy more coins or anything else. If you apply automated trading in this case, there will be no need for you to check the market round the clock.
Keep your head cold
If you do not control your emotions, this can lead you to collapse. Being greedy, you can expect a huge income, but also, your profit may turn into a loss when selling too late.
And don’t forget about excitement, when you see a certain coin pumping like crazy and think that you definitely should buy it right now. In most traders’ experience, the result is likely to upset you.
All these examples are just a part of the emotions that can harm your trading.
Study technical analysis
The crypto market is very different from the traditional ones, but the base is similar. For example, technical analysis applies to crypto. It would be very useful to study the information related to candlesticks, support, resistance, Bollinger bands, moving averages, etc. You don’t have to be a specialist in this field, but this knowledge can be always useful for you to get more profit or decrease your damages.
Diversify
As in life, so in trade, you should not invest your entire budget in one coin. We can give you several reasons for that. One of them is that it can reduce the risk of losing all your money in one moment. You should always consider the option in which the market will rise and you will have the opportunity to get more income because of the variety of prices for different coins. Some of them add just a few percents and the other ones have two-digit gains, so it’s always better to have multiple options.
Stick to the different exchanges
Just like with investing in different types of coins, you should trade on different exchanges. This solution will give you more opportunities to trade because different platforms list different altcoins. Moreover, you will be able to be more protected from fraud.
Now people have a huge choice for crypto exchanges, each of them is individual in its way and has its benefits and costs, that is why you need to study these criteria for a fertile trade: popularity, trading volume, security, number of traded altcoins, fees and user interface are the most important when choosing an exchange.
Trade what you can lose
This rule is one of the most significant because trading is very dangerous. Accept it. Most likely you will lose some amount of money. Invest only the amount you can lose to not worry too much about the fact that at one point you may be left without money at all.
Draw attention to security
As you know, crypto is mostly uncontrolled. That’s why the security of your funds must be a top priority. Always use strong passwords and two-factor authentication for your exchange accounts and consider using hardware wallets to store crypto. You should also never tell your password or personal key to other people.
Conclusion
It is worth noting that this checklist can be endless, but first of all you need to pay attention to these 7 rules that will help you make your trading easier. Read more in TradeSanta’s blog!
