Crypto Investing Tips
Whether you’re just starting out or consider yourself somewhat of a high roller, everyone needs a few tips to help them along the way of their crypto trading journey. Here are some of the best 15 tips that could help you increase your profits and broaden your knowledge.
1. Don’t use a broker
Instead of using a broker, rather opt for using an exchange site (there are hundreds of them). By doing this, you’ll save a lot on fees. Many newbies flock to brokers as they do make things easier in certain ways, but they forget what they have to pay for the convenience.
2. Decide if you’re trading short term or in it for the long run
There are basically two kinds of trading strategies- long term and short term. Both require different forms of research and have differing outcomes. You need to decide on your game plan and go with it, not just flop about in the middle, hoping things work out for you.
3. Crypto Market never sleeps
This is something you really need to keep in mind as a crypto trader as the market truly never sleeps and there are new things happening all the time. This is because it is a global market. One way to fight this phenomenon is to invest in things like bots that automate your trading for you.
4. Buy low & Sell High
Buying low and selling high is such a basic rule when it comes to trading of any kind that it is sometimes overlooked. You can make sure that you don’t do the opposite buy buying high and selling low by keeping up with price trends and watching crypto trading graphs carefully.
5. Always have a cushion
Cushions are vital when trading Bitcoin. Think of all their potential uses! You’ll have an extra stash to use if you see a really good opportunity on the market and it can save you if you end up making some not-s-smart trading decisions. A golden rule is to never use all of your trading budget in one go, always have a little stashed away for a rainy day.
6. Bitcoin is the best of the best
Bitcoin is, and always has been, the most reliable cryptocurrency to trade in. Altcoins obviously have their place and there are many altcoins that make great trading tools. It is a good idea to always have a bit of the BTC pie and keep the other altcoins on the sideline.
7. Learn the values of other coins in BTC
Since you’re trading in cryptocurrency- you better start talking and acting like it. Forget about talking about coins values in USD or EUR, the real currency it should be up against is always BTC. BTC is the primary currency of the crypto trading world and if you’re serious about trading, you should treat it as such.
Don’t be afraid to be trading with multiple coins at any given time. Swapping from one coin to the next is often far more confusing than having to keep up with multiple coins. It’s unlikely that all crypto coins would crash at one time so if one of your coins does take a plunge, at least you’ll have the others to back you up and see you through the hard time.
9. Don’t use Leverage unless you really know what you’re doing
Using margin trading or leverage is one risky business. Borrowing any sort of funds always comes with its risk and let’s not forget the interest that needs to be paid back at some stage. Another rule of thumb is to always make use of small buy-ins.
10. Don’t get too caught up in passing trends
It’s important to look at the big picture when it comes to crypto trading and not get too caught up in the small stuff and fly-by-night trends. Little movements in value do matter when you trading daily but if you are in it for the long run it’s better to ignore the smaller changes and keep your eyes open for the more significant ones, that would affect your stocks more in the long run.
11. Don’t always sell losing coins
Crypto coins are famous for doing turnarounds even when it seems as if their days are over. In other stocks and even Forex, if a stock is taking a plunge everyone sells as fast as possible. But with cryptos, it’s sometimes best to hold on if you think there’s a chance it may recuperate. It’s a good idea to do your research and see the reason for its decline, this will give you good idea how it may react going further.
12. Accept that some coins can reach zero
In contradiction to the above tip: don’t hold on to coins for too long. Let’s remember all the coins that didn’t make it to see 2018. Coins can go under completely and you should always be ready to sell when you see the warning signs of the ship sinking.
13. Don’t buy for the sake of buying
We know what it’s like…the market place is relatively stable, you start getting bored and then you just want to do something: buy, sell, whatever it may be. Well, don’t! Make strategic moves every single time you buy and sell and don’t make any decisions just because you’re getting fed up with doing nothing. Sometimes doing nothing is the best thing you can do.
Don’t follow trends or gossip-mongers. Do your own research! Make sure that you know how to read graphs and keep up to date with the latest crypto news. Being able to rely on your own knowledge when trading crypto will help you more than you can imagine.
15. Don’t ever invest more than you can afford to lose
This is a rule that applies to ALL forms of trading, investing and gambling. At the end of the day, there is no sure way to know if you will really make a profit so never risk your life savings on the crypto market.