This article will discuss the basic principles of cryptocurrency trading. In addition, readers will become familiar with such important concepts as diversification and liquidity, as well as learn what the phrase buys by rumor, sell-by facts means.
From Trustedbrokerz you can have the best support now. Also at the end of the article will be a glossary with terms and slang expressions used in the material. Before as soon as possible to study several universal technical indicators and choose a popular cryptocurrency exchange. It is possible with a troll box, but still better without it, you should once and for all learn some key principles of trading in the cryptocurrency market. The list below is, of course, not exhaustive. However, to start these principles is enough, because experience comes with time.
It is worth starting cryptocurrency trading only with available funds
The bulk of cryptocurrency savings is best stored not in a centralized exchange, but in a secure wallet. These funds can be considered as long-term investments.
At the same time, assets frozen on a crypto wallet can mean for a trader lost short or medium-term profit, since they are not involved in the turnover. Thus, some of these funds can still be deposited on several cryptocurrency exchanges.
Do not enter the deal for the whole cutlet. It will be quite safe for beginners to practice small deals, each of which may be limited to, say, 1-2 percent of the deposit. Gradually, with the acquisition of skills and self-confidence, this limit can be slightly increased. If you can’t wait to enter a larger percentage of the deposit, then it is better to wait for the most favorable moment for this, for example, a good correction of the asset price.
In no case do not go to the bank for a loan, then to buy a cryptocurrency and play on the exchange. Do not listen to different well-wishers telling how they managed to make 100500% and quickly pay off the bank. It is much better and safer to deposit part of the free funds from time to time. For example, calculate your personal budget so that, say, 5-10% of your monthly income is spent on buying cryptocurrencies to top up a deposit on a cryptocurrency exchange. Over time, it will also be possible to increase the deposit due to the gradual recapitalization of profits.
Do not be afraid to lose available funds
- Firstly, you allotted an insignificant part of your savings for trading, right?
- Secondly, even the best and most experienced traders sometimes make mistakes.
Losses and they can occur for various reasons: exchange scams, hacker attacks, token delisting, loss of private keys from an account on a decentralized site, etc. and prolonged drawdowns should be perceived as risks with a high probability. In addition, learn from mistakes. If success were not replaced by failures, then, probably, it would not be so interesting.
As before, the cryptocurrency market is extremely volatile and, one might even say, unpredictable. Cryptocurrency capitalization is highly dependent on various fundamental factors that instantly affect the mood of market participants. Important and not very news of the crypto industry can quickly multiply by zero even the layouts of technical analysis from the most experienced traders. The hypothesis of an effective market is good, but fundamental factors should also be carefully analyzed.