The Golden Rules of Crypto Trading for Beginners

As old investment wisdom says, the biggest mistake you can make is not investing. In other words: As long as you invest, you can only win. Of course, it’s not quite that simple. Now that you want to start investing in cryptocurrencies, at least your hard-earned money is no longer at the mercy of inflation, but of course it doesn’t make magical profits either. There are a number of rules that you should know if you want to trade cryptocurrencies successfully. About the right mindset, survival strategies and the right place to invest.

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The Golden Rules of Crypto Trading for Beginners

Rule No. 1: Acquire knowledge!

Rule #2: Learn to read the market!

Rule #3: Work with a strategy!

Rule #4: Find the right platform!

Rule No. 5: Be patient!

Rule No. 1: Acquire knowledge!

The first rule cannot be emphasized enough. If you want to trade cryptocurrencies successfully, you absolutely need to have at least a solid basic knowledge. All too often, stories of the painful losses of new dealers leak out that could have been avoided with a little more expertise. Think panic selling or participating in pump-and-dump schemes. Treat the case intensively, read up on specialist literature, get initial experience with demo accounts. These allow new play money traders to participate in a realistic market. Without theoretical and practical knowledge, you will not survive in the crypto market.

Rule #2: Learn to read the market!

Beyond basic knowledge, the benefit of simple analytical skills cannot be denied. You don’t need to become a professional trader right away, but you should be able to spot general market trends and interpret price fluctuations to your advantage. But what is important in technical analysis? Basically, there are three simple tools you should have at your disposal. First of all, you need an app that reliably gives you current crypto prices and all important key figures such as market cap. Coinmarketcap, for example, is suitable for this. Other apps like Tradingview also offer support for technical analysis that you would otherwise have to do yourself. Second, learn to recognize important trends and price levels and draw conclusions for your trade. Last but not least, it is imperative in the long run that you work with chart analysis techniques, roughly speaking, drawing lines. They do not provide absolute security, but offer useful help.

Rule #3: Work with a strategy!

Perhaps the biggest mistake you can make as a new trader is investing without a proper strategy. You must have a vision for your investments that is stable to a certain extent, so that you can react appropriately in the event of unexpected price movements. Likewise, you should be able to customize these if necessary. The most popular strategies include hodln – simply holding cryptocurrencies – swing trading – taking advantage of any price fluctuations – and day trading, which is only recommended for real experts at the moment.

Rule #4: Find the right platform!

“Crypto platforms are jackets and pants.” It may seem so at first glance, but the reality is different. There are a number of online trading platforms that allow cryptocurrency trading. Although they offer a similar trading experience, there are a few nuances that can vary greatly. Some try to cover as wide a range as possible, others, like Bitcoin Profit, focus on a specific product. Both have their advantages. These can be crucial to your goals and strategies. Important features that you should pay attention to when choosing your platform are: the availability of different cryptocurrencies, the information from charts and the like, the clarity and usability of the user interface, the fee model and any subscription costs, and the streamlined nature of the trading process. Depending on the strategy, the availability of certain tools is also important. For example, consider leverage and limit orders.

Rule No. 5: Be patient!

No successful trader has fallen from the sky, and neither will you. You can find gains quickly when you start, but real, long-term gains require practice and experience. To make matters worse, we are in a bear market right now. While this gives you an opportunity to enter the market at low prices, it also means you may have to wait some time before strong capital gains become commonplace. In the meantime, reflect on the wisdom mentioned at the beginning. They did something right when they first decided to invest in cryptocurrencies. Historically, the market always wins. Why should this time be different? So take it easy.

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