If you are like me, you avoid getting into something you do not understand. The crypto world is snowballing. Many people who are showing interest do not know where to start. Here are some of the tips I have gathered along my trading journey to save you time as you navigate these waters of crypto trading.
5 Easy-to-understand Trading Tips for non-experienced traders
Always do your research
It might help if you are always caning to learn more about the crypto you are interested in. Bitcoin is the most known crypto, do some research on it, for starters. Know how it has been trading, why the price rises or falls. Learn the contributing factors that can enable you to predict future prices. Information is always essential before you invest.
Ensure that you are aware of the pro and cons of this specific crypto before making a decision. Avoid overwhelming yourself with learning about many coins at once. It can make you confused and lose interest. For a non-experienced trader, start small. Start with one crypto first, watch how it performs.
Learn all you can and when you are sure that you have some information about the crypto use a trading app that is secure and safe. A trading app can make it easy for you to check how your crypto is performing. You can have access to information that can enable you to decide when and how much to trade. One of the simple, secure, safe, and easy-to-use apps is Bitcoin Evolution. You can start trading in Bitcoin Evolution by creating an account and loading up your wallet with a minimum of $250.In case you get stuck when trading or have any questions, Bitcoin Evolution customer care is always available and ready to help you out.
Start small. Just because you are needed to make a minimum deposit of $250 doesn't mean you should invest all of it at once. Use some of it first, watch and learn the market.
Never trade with money that can limit you financially if you lose it
Avoid using all your life savings to trade digital currencies. Many traders make a mistake of using all their inheritance to trade and in case of an unwanted outcome, they end up losing it all. As a rule of thumb in trading, never trade more than you can afford to lose.
The ROR on crypto can be very high and yet at the same time low. It is because the cryptocurrency market is very volatile. Bitcoin can be trading at $55278 at this minute, and the next minute it is either trading at $55300 or $54900. Both of these scenarios are very much possible.
If you have invested before, you know the first rule of investment: invest using any extra funds you have, like funds that would have stayed in your account unutilized or funds that would not cause too much trouble in your lifestyle if you incurred losses. Not funds meant to pay for your expenses like rent, health insurance, or money meant for savings.
Have a couple of favorite coins
It is effortless to assume that Bitcoin is the only crypto you can trade-in. There are other altcoins, more than 5000 in fact. Some of these altcoins have unique features like Vechain that help track products' quality in supply chain management.
Having more than one coin can help you diversify your portfolio. It can help you not get too obsessed with constantly checking how Bitcoin is performing, as you can have a couple of more coins to check. It also helps lower the impact that a volatile market might bring on your portfolio. For example, if the price of Bitcoin falls and that of Vechain rises, you can incur minor losses compared to if you had only invested in Bitcoin.
Use social media to add more knowledge
Most people underutilize social media. It is helpful for a lot of things, not for just posting pictures and memes. You can search people you know or heard are crypto traders, and you can follow accounts for Bitcoin and its altcoins. It can offer real-time updates about the specific crypto, which can help you to understand the market.
It is also possible to gather information using social media accounts and see what the experts predict about Bitcoin. Social media is a platform that has a lot of information, and if you use your time wisely, following accounts and people, it can help you earn more money.
Do not be greedy. Be patient
In crypto trading, you must exercise patience. It is easy to want to trade once crypto hits a certain point because you fear the price might drop, but even if the probability is high, the likelihood of the price rising even further is high too.
To avoid the fear of missing out, you can set a price on when you want to sell by putting a stop or limit order. A limit order sends instructions to sell your crypto at a specific price or a higher price than the one you have set, while a stop order can dispatch the instruction to sell your crypto when the price you set is met. It can help you exercise patience and wait until the price is met.
Most traders have lost out on massive profits by selling early. For example, Bitcoin was trading on 31st December 2020 at $29,500, and on 16th March 2021, it traded at $56,250. Imagine if you had some BTC, and because you were not patient, you sold it at $29,500 while you could have sold it at double the price.
To trade, you have to be caning to take risks. Keep in mind that every investment undertaken can always involve risks. These tips can help you know what to do and what not to do early on in your investing journey. These are some of the things most people learn the hard way, and if you trade with a clear mind, avoid being greedy, practice patience, and use the Bitcoin evolution app, you can enjoy trading.