Now a days bitcoin and cryptocurrency trading has a great impact over investors and a lot of newcomers are giving a try in bitcoin and cryptocurrency trading. Cryptocurrency trading is really good if you do it with complete knowledge and be aware about the risk involved. Anyone can start the trading by registering themselves in different Cryptocurrency Trading Exchanges .
Now the thing is that starting crypto trading is very easy but at the same time it is seriously a risky business, if you just enter into it with less knowledge and preparation. I feel that to become a successful trader you must have sufficient knowledge so as to become ready even for any losses if occur due to unfortunate reasons.
So here I would recommend my 5 thumb rules for safe cryptocurrency trading. If you follow all these in any of your transaction, I am very sure you would avoid burning your hands in unfortunate trades.
- Be aware with the risk – This is the very first rule of crypto trading that you must be aware of the risk involved in trading. Though crypto trading might be a very profitable business but at the same time it may also eat up your hard earned money. I have seen most of the people loose their money not because they are in loss but due to the anxiety of a panic trade. People who are more aware that crypto trading is a risky business, can avoid such anxious situations and at the same time they can even make their panic trades into profitable ones due to their awareness. So be aware that loss could also occur after successful profitable trades.
- Invest what you could afford to loose – I occasionally find many traders, who seek for great profits and invest their major funds altogether in trading. But I never recommend this to anyone. Sometimes good opportunities may transform into bad ones and you could loose everything you invested. At such situations you also loose the money which was not for your investment but was for your survival. So make it a habit that put any money in this business which you can afford to loose so that even after loss you can still feel relax rather being panic and worry for your basic needs.
- Never Invest in a Single Trade- This is the main problem with most of the investors that looking at great opportunities in a trade they invest their whole money in that particular trade. It increases your risk and can make you anxious if that trade is not getting any success. So best practice is that divide your money in some parts and then put those parts in different trading opportunities. This will diversified your risk and you would be more secure. If some of your trades are getting losses the other one could be in profits with this strategy.
- Don’t get panic, have Patience- You would have heard this statement not only in crypto trading but also in most of the daily life problems. This also applies in crypto trading. Most of the people come into fear looking at their looses and they exit from the trade in big looses. Crypto market never goes up in a similar fashion. If the market goes up then it is a sure thing that it will goes down too. We become more happier to see a uptrend market and growing portfolio but on the other hand downfall leads our mind to feel immense panic. So make it a rule that even if your trade is into loss, have patience and wait. Time will come and you will see the rise!
- Study before you invest- Although you may find many experts in the market and follow them but at the same time you should also put some time to study what they say. No one can be 100% sure about a trade because situations can reverse anytime. So listen to yourself even if you follow someone. Read charts, Check news, look at history of the trade and then make your decision when you are sure enough to play with that trade.
Follow these simple rules. These rules are followed by most of the successful traders. So these will help you to get the best of the results from cryptocurrencies trading.
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