Five Tips To Get Started In Bitcoin Trading During The Coronavirus Quarantine By CriptoNoticias
Cryptonoticias wrote an interesting article that we have translated which talks about some tips for cryptocurrency trading starters in this quarantine. We saw the importance of sharing this material with you, recognizing that there is little left for the halving of Bitcoin and we believe that there are still people with many doubts.
Trading bitcoin (BTC) and cryptocurrencies is a profession of risk, says the article, but it can also be of great satisfaction at the economic and professional level for operators who decide to make the leap to the crypto market.
One aspect must be clear, bitcoin and cryptocurrency trading is not something you learn overnight. This is a time-consuming activity, something that seems available in a time of coronavirus quarantine, as well as patience and dedication.
Unlike other professions, mistakes made in bitcoin and cryptocurrency trading are literally paid for with money, hence the risks that come from trading without proper knowledge. It takes professional traders, on average, up to four years to polish all their techniques and get used to the strong variations of the crypto market.
For many traders, the problem is not to open an operation and win it, but to maintain consistency for weeks, months or years. Trading bitcoin and cryptocurrencies during the coronavirus quarantine, properly managed, could open the doors for financial independence, which is seen as one of its strengths.
The five tips that we present below have been applied by professional traders, who confessed that they had to overcome multiple stumbles and money losses in their first steps in the crypto market. Despite the obstacles, they kept going driven by the passion aroused by bitcoin and cryptocurrency trading.
Education And Formation
The cornerstone for an operator to understand what bitcoin and cryptocurrency trading is all about during the coronavirus quarantine is education and training. There are operators who have developed their careers in a self-taught way, reading in industrial quantities, consulting internet sources or using trial and error methods.
Others have taken face-to-face courses or online specializations with the advice of professional traders. Either way, a crypto market enthusiast must spend many hours a day learning about patterns, possible variations, and as he gains experience studying and conducting technical analyzes.
The experts consulted by CryptoNews highlight that during the initial learning phase, a cryptocurrency trader can dedicate between 12 and 14 hours a day to study the markets. Being a 100% unpredictable profession, since it is not known what will happen to the price of cryptocurrencies, what traders are trying to do is study indicators to put the odds in their favor.
A fundamental aspect is knowing what is behind a cryptocurrency project, what are its strengths, weaknesses, being familiar with the natural volatility of the market, knowing how to read metrics and being informed about the latest news, both from the crypto industry and the economy. international.
In this phase the operator must be aware of the different types of exchange houses that exist, their security protocols, what is the reputation they have in the crypto ecosystem and the commissions they charge for operation. The idea is that you as an enthusiast handle as much information as possible to start making decisions and that these are not based on “hunches”, fear (FOMO) or leave them to chance.
Simulated Bitcoin Trading
Another tip, for those who want to get started in the world of bitcoin and cryptocurrency trading in the middle of the coronavirus quarantine, is that the first steps should be taken without risking funds. For this, they recommend doing paper trading or operating demo accounts at cryptocurrency exchange houses.
Paper swaps, in their original definition, are simulations in which the operator writes down the entry or purchase price of bitcoin, for example, to sign up for a position. The person records the information and tracks its variations.
The fictitious purchase ends with a sale in a time determined by the trader. In this way, the operator draws its own conclusions about how the exchange fared, that is, whether it would have won or lost money.
Currently, a large percentage of exchange houses offer the online demonstration service to simulate marketing directly on the screen and not on a notebook. With this method, bitcoin and cryptocurrency trading enthusiasts can learn the basics, how a trading platform works, and start defining their own strategies.
The main objective is not to risk real money unnecessarily. The second advantage is adapting to the real conditions of the exchanges, but with fictitious capital, something important to take into account so as not to generate pressure in the event of a possible loss.
Be Prepared For Losses
For the Spanish trader @inmortalcrypto money losses will always be present in the career of a bitcoin and cryptocurrency trading enthusiast. What happens is that at the beginning they are more usual because you are in a learning process. The operator dismantles the thesis that cryptocurrency trading makes large amounts of money in a short time.
What he recommends to enthusiasts is to be prepared for losses because mistakes come more often at first and that costs capital. In this phase, it is logical and normal that bad decisions are made due to lack of experience, but as progress is made, good streaks will also come.
An element to take into account is to recognize when a bad decision has been made and admit it. In these cases the first action is to cut the loss as soon as possible and take note of what happened to keep a record.
At this point it is important to emphasize that nobody likes to lose money and neither does he admit that a bad decision has been made. However, a trader, like anyone else in other aspects of life, can be wrong and even more so in the cryptocurrency market where the variations can go from 1% to 100% in a few hours.
In short, operators must have a lot of tact to know how to manage losses because they are part of the day-to-day work. It is also vital to know how to control emotions and not operate in a bad mood, tired or without detecting a real opportunity for profit. In the latter case, professional traders recommend not opening any trade because it is preferable to wait for better scenarios to appear.
Safekeeping Of Funds
One of the most common recommendations for those who start trading bitcoin and cryptocurrencies during the coronavirus quarantine is not to leave the funds obtained by the operations in the exchange houses.
The suggestion is to withdraw the funds to cold wallets for a better safeguard, since this type of platform can be the target of hacker attacks and seize the funds of the users and the exchange office as such.
There are operators that keep only a number of cryptocurrencies in the exchange houses as a base to operate and the rest of the funds, if applicable, are withdrawn as profit at the end of the day.
The problem is that every year the bureaux de change lose millions of dollars in cryptocurrencies due to cyber attacks by computer criminals trying to get as much money as possible.
If you don’t have control of your coins with your private keys, then really cryptocurrencies are not yours. These can be managed by third parties for other less transparent interests in the community. In the cryptocurrency community there is the saying “not your keys not your coins” or “if they are not your keys, they are not your coins”, in Spanish.
This expression summarizes the fact that just as decentralization and transparency in the ecosystem are encouraged, it is also necessary to remember that the responsible management of personal funds is an action that must be taken by each user and not delegated to intermediaries such as houses. cryptocurrency exchange.
Take Care Of Physical And Mental Health
The suggestion of professional traders is to take care of physical and mental health at all times. The recommendations are: not sitting for long periods of time, practicing some physical activity outdoors or sports, having a social life and staying relaxed.
As much as possible a cryptocurrency market enthusiast should have daily planning. It is usual that during the first months of work the new operators review how the market is as soon as they wake up in the morning. However, it would be a practice that would break with the normal development of their daily activities.
It must be remembered that bitcoin and cryptocurrency trading is a mostly lonely profession in which each person is their own boss and makes their own decisions. If they are bad, then frustration may appear for not getting the market behavior right, leading to a shock of negative feelings. To minimize all these aspects, it is recommended to have distractions before or after the trading sessions.
As long as there is planning that includes multiple activities, a balanced diet and a positive attitude, the scenario for analyzing the markets would be more favorable, which translates into potential better decisions.
Always Carry Out A Preliminary Analysis
Our personal advice to complete the previous information is that you always carry out a prior technical analysis that allows you to identify supports and resistances, trend lines and, above all, above all, a reading of the main indicators in order to reduce errors when investing.
Many traders do not take the trouble to take considerable time to do the above and denigrate this powerful tool. The fact is that these technical analyzes have helped us a lot to identify future scenarios. That is why it is our personal opinion: we must always trust what analysts of good reputation tell us.
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Remember, investment in cryptocurrencies or other assets has a moderate risk, so it is important to have a detailed study of the possible scenarios before placing your money at risk.