The cryptocurrency market is turbulent. Because of this, it’s called the “wild west.” Before trading cryptocurrency, you should understand the hazards. It can be a lucrative venture if you’re attentive and do your research. For extra information Register here.
1. Do Proper Research.
Research is the most part when it comes to investingin cryptocurrencies. The market moves swiftly, and you may miss opportunities if you solely consult one source (or even many sources). Below highlighted are some helpful points to follow when doing research:
- Research the cryptocurrency that interest you by reading their whitepapers (if they have them), visiting their website and social media channels, following the developers or community managers on Twitter/Reddit, etc.
- Make sure exchanges are trustworthy; some may charge more significant fees, so verify before signing up. Ensure your deal allows specific trades. Find out what verification is required before trading;
- If you’re interested, study charts and technical indicators before placing trades.
2. Do not be greedy; control your emotions
Greed is the worst trait when trading Bitcoin or other cryptocurrencies, and many traders and investors fail for this reason. Greedy traders take more risks and invest more money than they can handle if things go wrong. It also means that you are taking on higher risks than other traders working on similar strategies as yours without having any data or statistical evidence backing up their decisions.
As long as you avoid being greedy and ensure that no matter how much profit you earn, it’s always just a tiny percentage of your total portfolio size (or even less), then nothing stops you from enjoying success in this industry over time.
3. Make use of the Fibonacci retracement tool
The Fibonacci retracement tool is a series of lines drawn across a chart to indicate levels where buyers or sellers might be expected to take action. As the price of an asset rises, it will often correct itself by falling, and vice versa. The tool is based on the theory that markets tend to retrace to a previous level before continuing in a new direction. By creating these lines, you can predict future price movements and make better trades based on your analysis.
4. Make use of technical indicators.
Use indicators to help you determine the strength of a trend and the direction of that trend.
The best technical indicators help you understand support and resistance levels, how strong the current trend is, and when to buy or sell. Here’s a list of some common technical indicators:
- Moving average convergence/divergence (MACD) (MACD)
- Relative Strength Index (RSI) (RSI)
- Such as stochastic oscillator (STO), momentum oscillator (MOM), etc.
5. Understand and master the important key terms.
You need to understand key terms such as “buy wall,” “sell wall,” “ask,” and “bid.” Below highlighted are some important key terms to take note of-
- Buy wall: when a lot of people are buying a cryptocurrency, the price will increase.
- Cell wall: When many people are selling a cryptocurrency, the price will decrease.
- Ask: the price at which someone is willing to sell bitcoins or other cryptocurrencies in an order book on an exchange or trading platform (i.e., Bitstamp).
6. Choose a reliable platform
When choosing an exchange, you should look for one that offers the following features:
- Security – A secure exchange has robust security protocols and has never been hacked.
- Speed – Faster exchanges offer faster transactions. This can be very important if you want to convert your cryptocurrency into cash as soon as possible.
- User interface – Some exchanges have poor user interfaces, whichisn’t ideal for new users who may struggle with using certain site functions.
Bitcoin is also a decentralized currency. Any bank or central authority does not control it. Instead, it has been built using open-source software that anyone can access and use as they wish. This lowers costs associated with transactions while increasing security measures within the system due to its decentralization nature. If you are in a quest to learn more about trading and experiment in a safer platform, then bitcoin profit is your go to. It’s the best platform to explore the world of bitcoin trading.
So, now as you are well aware of the important steps of becoming your best version of crypto trader, it is time to start trading.