Top 20 Tips All Cryptocurrency Traders Should Adopt For Best Returns On Investment
While many digital currency traders like to claim that the crypto market is already figured out, for most investors — especially newcomers — this is simply not the case. The crypto market is complex, largely unregulated, and very unstable as a result. The unspoken truth is that a lot of people have no idea what is going on most of the time.
Because of that, there is never certainty when it comes to crypto market, or cryptocurrencies themselves. All that anyone can really do is make educated guesses, and hope that their investments will not be blown away.
Despite this, there are some tips that we can share that will allow new investors to make these guesses as best as possible and, hopefully, make a profit by doing it.
Top 20 Tips All Cryptocurrency Traders Should Adopt
So, here are 20 tips that will help you make your trading as successful as it can get.
The Markets Move In Cycles
A lot of new investors start panicking and are quick to give up on crypto trading due to an unexpected market crash. This is something that happens all the time, but do not worry — things eventually always improve.
Trades And Investments Are Not The Same Thing
One important thing to note is that trading is buying cryptos for a short period, and selling them in order to make a profit. Investments are purchases of cryptos for longer periods which many use to build their wealth for the future.
Come Up With Plans For Trading And Investing
Entering the market without any plans is not a good idea, and you need to know what you want to do. Figure out where you want to go with your trades and investments, and stick to the plan.
Don't Trust Offers That Are Too Good
The crypto market is still new, and scammers often take advantage of new investors. If someone makes you an offer that is too good to be true, it likely is.
The Crypto Market Is Different Than The Stock Market
The stock market has made a lot of people rich, and it also gave a lot of investors a reason to believe that they know how to make money through trading and investing. However, things are quite different when it comes to cryptocurrencies, and you need to be aware of that before you rush in and lose your money due to a bad call.
HODLing Is Good
A lot of investors are buying at lows and selling as soon as the situation starts getting better. While this can work in other markets, when it comes to cryptos, it is much better to hold on to your coins.
The Market Has A Mind Of Its Own
The crypto market is big, but it is also unstable. As a result, nobody can control it, and it is very difficult to predict which turn it will take at what time. Do not try to control it, as it is simply impossible to do so.
Be Careful Who You Trust
New traders and investors often make a mistake of following the advice of others when it comes to cryptos. While the more experienced traders' opinions should be taken into an account, do not blindly follow their word. Do your research, and make your own decision. If you follow what someone else said, it will be their fault, but your loss.
Do Not Trust The News Either
The crypto market is alive, and something is always going on. In an attempt to predict short-term changes, a lot of people will come up with news of their own, and conflicting reports can be found all around the internet at any time. Ignore the news and draw your own conclusions.
Learn Risk Management
Managing risk is a useful skill to have. This is something that can allow you to make a profit even if you lose as much as half of your initial investment due to a bad call.
Volume And Price Behavior Are Good Indicators
You can tell a lot regarding a certain crypto, its behavior, and what to expect in a short future by keeping an eye on its price and trading volume. Use different websites such as CoinMarketCap to follow these changes.
Do Not Keep Your Coins In Exchanges
Exchanges can offer a place to keep your coins, but this is usually a bad idea, as you do not truly own your coins until they are under lock and (private) key that only you will hold.
Top 10 Coins Are The Safest
Investing in different coins and having diversity in your portfolio is always the best approach. However, trading lesser-known altcoins is not a good idea. Stick to the largest coins, and your chances of successfully making a profit will increase.
Don't Worry About Mistakes
Mistakes happen, and that is a fact of life. You can't expect every choice you make to be the right one when it comes to cryptos. Do not allow this to discourage you. Instead, use this experience to do better next time.
Make Investments Rather Than Trades
Investing long-term is a better way to make money than to simply buy and sell all the time. Allow the market to grow and mature.
Don't Try To Make Sense Of The Market
The market is not rational, and it can often take unexpected turns, usually when you least expect it. There is no predicting how things will end, or what will happen next. It can crash in the middle of a price surge, or do the exact opposite. It's best to accept this as a fact early on, and just learn to roll with it.
Trust In The Project You Chose
Choosing a project that you will support is one of the most important things. However, after doing so, it is just as important to stick to your decision, even if it seems like it's not going very well at certain times. Be patient, and things will eventually come around. They always do.
Satisfy Your Trading Needs
It is important to satisfy your trading needs and reach your investment's full capacity. Do what you need to do, and don't look back.
Know When To Stay Away
Some cryptos simply do not have enough potential. If their price keeps dropping, their market cap is low, and their trading volume is not that good, it is better to avoid it and turn to another.
Missing Out On Trades Is Not The End Of The World
As we said earlier, the market is a living thing that has a mind of its own. This means that things are going to happen when you simply aren't there. Whether it is the middle of the night, or if you are spending time doing something else, you cannot be there constantly, From time to time, you will miss an opportunity. But that's okay. A new one is just around the corner.