As in everything in life, the best way to learn is by doing things, in trial and error mode. Of course, cryptocurrency trading is no exception. But despite this, it is good to take into account the advice of those who have traveled the path one wishes to do.
I clarify that these tips are not of my authorship, but of a compilation made. For that reason I share a list of ten basic tips for beginners in the world of trading applied or not to the crypto market.
Any form of trading you do at the start you will have a 50% – 50% chance of losing or winning. Trading can generate profits if done right, or you can easily lose your capital. The commandment of the investments that you should tattoo in your mind is: “Invest only the money that you can afford to lose”
It’s about taking calculated risks. The rest will be good or bad experiences and what is intended with that commandment is that bad experiences do not leave you in ruin despite losing all your invested money. Hence, you should only lose as much as possible without leaving yourself bankrupt.
Before sharing the tips, the key recommendation is that it will always be convenient to start with simulators, virtual money or demo accounts of the portal that is to your liking. Without more rolls, these are the tips to follow… 1- Research
“Whoever asks for advice on his savings from someone who is not knowledgeable in the matter will have to pay with his economies the price of the falsity of the advice” – The richest man in Babylon.
The advice will always be good because it is free and for that reason if it becomes bad it could cost a lot of money. So your full responsibility as a trader or investor is to research everything about the instrument you want to trade on. Make that commitment and responsibility with your money. }
Remember that money represents the energy, effort, work, time and knowledge invested to generate or produce something of value, so it is worth dedicating research time to any investment or trading to handle it properly.
Do not blame anyone for your bad investments, no one will force you to invest will always be your decision.2- Plan before investing
It is very important to plan your steps in advance and not to go first, blindly. You can start, by determining the amount of capital you want to invest and prepare your portfolio accordingly. The portfolio, in general, should be diversified and contain low-risk currencies to reduce the chances of capital losses.3- Choose your cryptocurrencies
There are thousands of tokens available in the crypto world, so be careful, do your own research on the currency and equipment. Stalk their website, their GitHub, look at their tweets, make sure the project is legitimate before investing in it. Track and meet the team behind the original project and their relationships with other companies.4- Check the price and supply of coins
This is very important, as most people engage in FOMO (the “emotional-impulsive” stage of the market where investors are afraid of being left out or missing out on a profit rally) to buy tokens at the top and then complain when the price of the coin starts to correct.
It is important to make sure that the price has not exceeded before buying a coin, for which it will always be good to take a look at a historical chart of the price. Also, I suggest consulting the “supply” of currencies, since a currency with excessive supply requires an excessive increase in its capital market to be able to reflect a significant increase in its price.5- Use indicators
Indicators are tools always based on statistical data (past) and although not many recommend their use for trading, they are always useful to understand the current market situation. Use them as a backup or support. There are a lot of indicators present on the Internet and most are free, even with tutorials of use on Youtube.
6- Set price levels
Buying low and selling high, seems like a simple and simple rule to comply with. But how much is cheap and how much is expensive? Therefore, it is necessary to create a more strategic plan than that. Hence the importance of setting price levels to sell if there is an uptrend, or a price level to sell if there is a downtrend, avoiding losses.7- Take profits and assimilate losses
As a trader or investor in the crypto space, it’s best to make sure you use the volatility of the market and target short-term profits and compile them over the days to get a massive payday at the end. Although we would all like to win the lottery with a single investment, it is best to have a portfolio that diversifies profits and losses. Expecting the latter to be less than the former.8- Be patient and maintain your posture
Patience is a virtue that is rewarded very well in the long run, and as the saying goes: “the good things in life take time”, we must be patient with our investment. I put it in these terms hoping it will be clear.
Assuming that today you buy 1,000 units of X token at a price of $ 1, and after 1 month its price is $ 0.5, which means at first glance that you have lost half of your investment.
However, you still have in your hands the 1,000 units, they are still yours. This is where patience should be vital, you must keep the units and wait for them to be revalued in the future and you can recover and even earn a few dollars (if it is Fiat money you want).
Most people give up and sell their coins and then lose when payday comes. So you must be patient, believe and trust. Remember that after all, it is money that you were willing to lose.9- Be disciplined
“Sow an act and you will reap a habit, sow a habit and reap a character, sow a character and reap your destiny” – Charles Reade-
The Achilles’ heel in trading will always be discipline. I believe that there is nothing more difficult than self-discipline and for that reason those who achieve it are well rewarded. It’s a self-domain. As a fact, 90 percent of traders lose their money just because they are undisciplined and greedy.
Therefore, it is always recommended to have discipline and strategy before starting to trade, both to win and to lose; always respect your strategy.10- Store your funds in cold wallets
This cannot be emphasized enough. This is probably the most important rule you should follow as a trader. More than $40 million worth of cryptocurrencies have been stolen by hackers. It is always recommended to get a cold storage wallet to store all your coins or funds. You should only keep in your accounts with the broker or exchance the amount with which you are trading, the rest you must protect.
I hope these tips are useful to you, but always remember the responsibility of taking or letting go of advice will always be yours, because good results will belong only to you, as well as defeats.