Cryptocurrency Trading Tips
Ignore the Hype
The first thing you need to do to trade well and make money is not to follow all of the hype. I know some people may say to this that if you don’t listen to the market you won’t hear when things change and what coins to put your market in. This is only part of the truth though. Trading in low markets where there is little action is your goal. Trade when it is quiet and low and sell when the market it hot and high.
If you find yourself buying in because you feel like you are going to “miss out” or because you read a hot tip that this coin is going nuts right now, most of the time it is already too late. To really get the good deal you need to do the research and back the coins that you believe will do well.
Do your Research
You should know what it is that you are investing in and why. For how long you will invest and what gain you think you will get out of it. All professional traders know all of these things before they ever enter a trade. Why, you ask? So that when they get swept up in the emotion of the market they have a guid to tell them what to do. This is so that they don’t make decisions when they are in the middle of a trade and the thought pops into their head that “it will turn around soon” and follow a trade to the ground.
The more you trade the more you pay transaction fees. In Cryptocurrency trading the amount you pay to exchange your funds is much less than you would pay doing share trading or almost any other kind of trading. But this doesn’t mean you shouldn’t consider it. Because if you buy $100 of etherium and it cost you $2 of fees to get into the market and $2 to get out you need to make $104 before you break even. This may seem small when you are making 20%, 60% or 100% on each trade but keep in mind that with more trades and larger volumes these small amounts get bigger and bigger.
Plan Your Trades and trade your plan
Every trader should know why they are getting into each trade, how much they are risking, how much they plan to make and most importantly when they are going to pull their money out to save their capital. You should develop a plan that works for your goals and work to that plan. If you are working to long term goal then you should be looking at long term charts for trends and using shorter time charts to look for good entry points into the market. Once you have a plan stick to it. It’s better to have a “good” plan that makes you some money than to keep trying to make it perfect and make it worse in the process.