6 Cryptocurrency Trading Tips You Probably Didn’t Know About
First and foremost, you must realize that profitable trading necessitates a high level of focus; it is not and never should be a gamble.
In addition to the ten tips below, pay careful attention to the market forces of demand and supply to determine whether this or that tip applies.
Every tip in this guide must be internalized and the logic behind it must be understood.
#Have a reason for entering in each trade
If you’re a day trader or a scalper, you’re sometimes better off not making any money on a deal than rushing into losses. Based on my years of market research, I can honestly state that you can only remain profitable by avoiding certain trades. But all you’ll need is patience.
#Set profit targets and use stop losses
If we’re making a bitcoin profit or not, any trade we enter needs us to know when to exit. Setting a simple stop loss level will help you cut your losses, which is an ability that most traders lack.
Choosing a stop loss isn’t something you can do at random, and maybe the most important thing to remember is that you shouldn’t let your emotions get the best of you — a good place to set your stop loss is at the expense of your coin.
The same goes with profit targets: if you want to exit the market after making a certain minimum profit, stick to it. Don’t be greedy; this color never looks good on anyone!
#Beware of FOMO
The acronym FOMO stands for “fear of missing out.” One of the most well-known reasons so many traders struggle is because of this.
Be careful of the moment when the green candles begin to yell at you, urging you to enter. The whales I described earlier will be smiling and watching you buy the coins they bought at extremely low prices at this stage.
#Manage Your Risks
Wise traders don’t chase for big profits; they don’t do that. Consider saving a smaller portion of your portfolio in a less liquid environment. Such high trades necessitate a higher degree of tolerance, and the stop loss and benefit goal points will be set further away from the purchase price.
#Volatile market conditions are caused by underlying assets
Many altcoin prices are determined by the current market price of Bitcoin. It is important to recognize that Bitcoin is highly volatile in comparison to fiat currencies.
#Don’t buy anything just because it’s cheap
Most beginners make the same mistake: they purchase a coin because its price appears to be low or within their budget.
The price of a coin should have very little to do with its affordability and a lot to do with its market cap when deciding whether or not to invest in it.
Do not begin trading until you are confident in your ability to make quick decisions when entering and exiting trades. Emotional trades have a history of being loser trades; stay cool and wait for the next chance. There will always be a better one.
SnapBots(www.snapbots.io) is an artificial intelligence (AI) research firm based in BVI with global users. Driven by its focus on fields of machine learning and deep learning, it aims to supply trading bots as a service.
For more information, please visit:
Join our community- t.me/SnapB