Cryptocurrencies, Cryptocurrencies and again Cryptocurrencies. We are talking about one of the most dominant markets today, whose growing popularity has successfully eclipsed almost all other markets in the world. By now, you should be aware that the cryptocurrency market has been very risky and at the same time very lucrative. Investors who want to succeed in crypto trading have to follow certain rules to stack the odds in their favor. We’ve selected the 6 best tips that we think are the most important when it comes to cryptocurrency trading.1#Tip – Portfolio diversification
In a stock, commodity or any other financial market, portfolio diversification is extremely important and is no different in the cryptocurrency market. Most people just want to buy Bitcoin and keep it as the only cryptocurrency. However, by doing so, you put your capital at a greater risk than having at least 3 to 5 cryptocurrencies in your pocket. It is not recommended to rely entirely on a single investment. When the prices of cryptocurrencies rise, they usually rise substantially. And if you have more different coins, you significantly increase the likelihood that at least one of them is in the portfolio. Tip #2 – Determine your crypto strategy
Determine your cryptocurrency strategy and trading style before joining the majority. Cryptocurrencies are just as great as long-term investments as short-term investments. Traders who focus on short-term investments are called day traders, and they tend to stay in a position for a maximum of hours. Their goal is to enter when the price seems low, exit when it skyrockets, and escape somewhere else with the profits made to open another position. From my point of view, day trading is more complicated and risky. However, the greater risk is greatly rewarded, and cryptocurrency day traders can double or triple their capital in a short period of time. However, not every investor has the time or desire to learn how to trade cryptocurrencies daily. The even more popular option is to make long-term investments in cryptocurrencies. By choosing this option, you don’t have to watch the market every day and you don’t have to think too much about the current price and the future price. In long-term investments, it hardly matters what the current price is because you trust that the price will rise by tens, hundreds, or thousands of percent. Tip #3 – Don’t panic when the price drops
The cryptocurrency market is known for its volatility. And traders who decide to take over cryptocurrencies cannot panic when their coins suddenly lose their value, especially if they focus on long-term investments. Novice traders who do not know how this market works and how it behaves can go crazy and make a hasty decision that they will later regret. There’s nothing worse than buying Bitcoin when it’s $15,000, selling it in fear when it drops to $10,000, and then realizing that the price has risen again, perhaps even exceeding the previous all-time high. Therefore, my advice is to never base your decision on fear or panic. Tip #4 – Choose a reputable broker
It matters where you create your traders. It’s just that not all companies have different fees where you can save a lot of money if you choose wisely. However, there are also many scams or brokers with a bad reputation that are not worth trading. Choose a crypto company that is trusted by traders and licensed by the European CySEC or has a British FCA registration. The 3 popular companies that meet these requirements are as follows.
UK and US residents can only trade cryptocurrencies with eToro from the companies listed below.5# Tip – Don’t be fooled by crypto scams
When binary options started, there were so many scams that we didn’t even know which one to warn our readers first. And it’s the same with cryptocurrencies. The more popular a particular trading tool is, the more obscure companies and scammers appear in the market. Cryptocurrency scams usually have similar symptoms and are quite easy to detect and are as follows: Incredible return on investment, The system is only for a limited number of people, it does not require knowledge about cryptocurrencies because the system works fully automated, etc. One of the most well-known ones that we have uncovered on the web: Ethereum Code, Bitcoin Open Hole, BitCoin Code. But know that there are others.6# Tip – Know your financial options
You may have heard of people selling everything they own in order to invest as much as possible in Bitcoin or other cryptocurrencies. Bitcoin’s value increased by 1300% in 2017 from $959 on 1.1.2017 to $13 580 – $31.12, some people can really understand them, but I think such a radical decision is crazy and illogical. Bitcoin and the crypto market in general are still relatively new, and while BTC has turned out to be one of the best investments of 2017, we are still unsure of future developments. Traders, therefore, should only invest money that they can afford to lose.
