If you have tried cryptocurrency trading, you may know that the trading is tricky. You need to know as much as possible for earning big profits.
You know that altcoins with small capacity always have a great chance to gain massive. But, you have to protect yourself with shield since the cryptocurrency market is complex and fast changing. These are 5 tips for your successful cryptocurrency trading.
- Watch How Bitcoin Shifts
You might be wondering this is not a post about altcoins
Yes, it is. The main asset drives change on the Cryptocurrency market, is still Bitcoin. Bitcoin is a top cryptocurrency and the standard of cryptocurrency as well. It has a strong brand name which affects all other coins. When altcoin market shifts significantly, you need to take a look at the bitcoin market first.
It has to be noted that bitcoin and altcoins have an inverse relationship. When the value of altcoins decreases, bitcoin gain values. On the other hand, when bitcoins fall, altcoins rise. So, if the crypto market is volatile, you should check the latest news of bitcoin.
- Do not Enter a Trade in Rush
This is a common mistake among beginners that you should avoid. Most people who are new to trade often enter in rush lose big.
Here is an example. When a particular coin is on a bull, you execute an order slightly lower to the current price. But you are not in it, and the price keeps rising. You should leave them and forget about it. Most of the people have fear of getting left behind and enter the trade with a high price.
You need to wait to see how it ends instead of doing such action. Basically, this is the best decision you can make in this case. You are not invited to that trade, however, someday you will be. Doing so raise the chances of losing big.
- Take a Break
Cryptocurrency market changes rapidly and needs your attention much. That does not mean you should check how your investments are doing all day. Checking your investments and seeing the rise is amazing, but you should also remember you lead yourself to a big risk of developing an obsession to trade. It may bring a negative impact on your trading and your life.
Take a break, make a certain schedule and stick to them. Fresh mind increases the chance of making good decisions.
- No Altcoins for Long-Term
Unfortunately, most altcoins have lost their value over time and you should have this in your mind before executing some trades for medium and long-term investments. You will make a bad decision of having altcoins for long-term. Remember that they will become much less valuable.
- Do not Day Trade
If you want to improve your knowledge of trading, day trading may be a bad idea. Even for experienced traders, a lot of time and effort is needed to win in a day trading.
You have a rule of closing your position when you earn 10 percent. If the price rose over 10 percent, there is a high chance that the prices increase. Instead of day trading, try to buy and hold your coins for longer. This strategy helps your trading be more successful and less stressful.