Six Tips on How to Become a Professional Trader
Cryptocurrencies represent one of the most profitable territories for traders nowadays. Many reasons support this claim, the main one being that they act as a decentralized and semi-anonymous medium of exchange that isn’t tied to central regulations such as banks or governments. Moreover, it is strongly believed that revolutionary technology, blockchain, has the potential to transform our entire financial system.
In the past years, many professional traders switched to cryptocurrency knowing that there is a firm chance to make hefty profits on the short term. This trend is most likely to continue in the future, as cryptocurrencies grow bigger and better. And so do crypto tips from masters.
Although the market is still relatively new and quite fickle, this hasn’t stopped professional traders from obtaining profits. It does, however, seem scary for others who lack skills and experience with cryptocurrency trading.
Becoming an expert in cryptocurrency trading, and increasing your chances of making profits demands a certain level of experience. However, if you are willing to learn a few valuable crypto trading tips, you are already one step closer to becoming one yourself.
The following crypto hints should help you on the journey of perfecting your crypto trading skills.
Cryptocurrency Trading Tips
To excel in crypto trading, you need to step up your game. Even if you are a professional trader, you have to continue improving skills and knowledge of cryptocurrency. The market keeps evolving and changing, so you need to stay one step ahead at all times.
Here are six cryptocurrency tips that will help you with that:
1. Have a Clear Goal & Define Your Risks
Trading cryptocurrencies without a clear goal could result in financial suicide. As with every type of trading, this too needs a well-thought-out strategy, and the only way to do that is by having a goal. One successful strategy could be if you set your goals by putting higher sell orders, and preferably very low buy orders. Nonetheless, when you are placing the sell order, don’t let your ego take over, and be realistic. Make sure you start small and move your way up from there. All professional traders know that the smaller gains are the ones making profits.
Investing in cryptocurrencies can be a risky move, so unless you control your emotions, you won’t make profits.
Knowing just how big of a risk you are taking, it would be very unwise to start investing without defining and managing your risks. That means measuring the market violability to find out the possible negative or positive outcome of the trade you are about to make. Sometimes, it’s essential to take your chances for the possibility of winning bigger profits. However, make sure that your moves are always well-calculated, and not rushed. This advice is valid for all coins so can be included in Bitcoin trading tips and tricks, too.
2. Decide on Profits and Losses
Correlated to what was said earlier as a professional crypto trader you must have a strategy and a defined goal. That includes determining your profits and losses above anything else.
Do you know what your target level of profit will be?
Have you decided on a stop level for your losses?
These are the main things that you need to do before you start trading. As a professional trader, you can choose between various tools that can help you prevent the loss. That includes buy orders that allow you to set up the highest price you are willing to pay to acquire coins, as well as sell orders, that will stop losses if the price falls very low. By setting up these perimeters, you’ll have a stable income of money, without losing all of your invested finances on a bad market day.
These tools, where you can decide best on your profits and losses, are automated trading terminals that will minimize the risks, and maximize your chances of winning.
Superorder, as an automated crypto terminal, will help in your efforts of becoming an expert trader. By executing your order, with the help of our crypto trading bots, you’ll see the ease of using tools with your trading. That brings us to the next step of this guide.
3. Use Automated Tools
You can use all sorts of tools that will help you on your journey of becoming a professional crypto trader. As we already mentioned, an automated trading terminal such as Superorder presents you with an easy and cost-effective method of trading without including many of the risk factors existing in the crypto market. It doesn’t matter if you are an alt-focused scalper or HODL-styled Bitcoin trader, tips related to automation are universal.
For a start, you will lower the influence of emotions. The algorithm will follow your orders, and when the time is right, it will buy and sell coins on your behalf. In other words, fear or greed, as common emotions in trading won’t influence your strategy. Also, the platforms will do all the market tracking instead of you, saving time and energy. Sometimes to be a professional trader, means to know all the shortcuts that help you use time efficiently and focus on other things as well, all that while still making money.
4. Don’t Rely on FOMO
Cryptocurrencies, when traded correctly, can be a real gold mine. However, investing your money in something just because of your “Fear of Missing Out” (FOMO) is not the most professional move you can make as a trader. Although FOMO is an enormous factor that drives the prices of the crypto market, it should be treated with precaution and managed correctly. FOMO can surely represent a chance for doubling your gains, but it can also be a trick. The coin’s prices can increase from all the investors rushing into getting their hands on cryptocurrencies, expecting the value to rise even higher.
With that being said, it’s comprehensible why you’d want to invest in something that shows good signs of easy profit. However, keep in mind that the market’s sudden rise of coin value can be nothing more than a move from the whales made to trick traders. ‘Whales’ is a term used for large coin holders that artificially boost the prices of cryptocurrencies as a way to trick traders, particularly beginners, into buying at a much higher price.
Therefore, Superorder’s team advises every crypto trader to follow this trading tip and stay aware of the market values without relying so much on FOMO.
5. Choose Your Altcoins Wisely
Although Bitcoin is by far the most traditional choice for traders, many other valuable altcoins can bring you profits, even more so than BTC. However, if you chose to invest in altcoins and trade them as a part of your strategy, make sure that you choose them wisely. The bad thing about altcoins, or at least most of them, is that they lose their value over time. Sometimes this can happen out of nowhere, leaving you with losses. If you want altcoins for long-term trading, it’s best to go with those who have stable charts and have a large community behind them, such as Ethereum, Ripple, or Dash. For short term trading, you can go with less familiar coins, but make sure that you keep an open eye on the charts and price fluctuations.
6. Always Follow Bitcoin
Today, Bitcoin trading tips are everywhere. Bitcoin was the first-ever cryptocurrency to be created, and ever since it made its first appearance, it remained relatable and a convenient choice for traders. One of the best and the last crypto trading tip on our list is to follow Bitcoin no matter your cryptocurrency choice. Even if you are trading altcoins only, it’s incredibly important to know that most of them are traded against Bitcoin, rather than fiat currencies.
Therefore, in most cases, when Bitcoin’s price alters up or down, there is a possibility that other altcoins will do the same. It’s not something that always happens. Nevertheless, it’s essential to have this factor in mind when trading. These Bitcoin trading tips for beginners are also useful for professionals.
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We hope that these crypto trading tips helped you get one step closer to becoming an expert trader. For more information, as well as updates and helpful guides, make sure to follow this blog and catch us on Facebook, Twitter, Telegram, and YouTube.
