A Beginner’s Guide: Top Guidelines For Effective BTC And Cryptocurrency Trading

Safety rules come with a price. It goes without saying that each military member in the armed forces understands this. While it isn’t a matter of risking one’s life, losing one’s bitcoins due to inexperience is not a pleasant experience.

How can such mistakes be avoided and remain in the black? As a starting point, it is crucial to understand that trading is an activity requiring 100% concentration. Additionally, not everyone is suited for trading. These guidelines can be easily incorporated. However, putting them into action in real-world situations is difficult. There is no rationality in people.

Every trade should be justified.

Before you enter into a trade deal, it is important to have a clear understanding of why you are doing so and what your goals are.

Some traders aren’t profitable.

The stakes are high in this game of chance since one side always wins while the other loses. We should not forget that the crypto-whale community dominates the cryptocurrency world, they are the same individuals to blame for dumping chunks into bitcoin into the system.

I believe that the sharks are just hanging around in the hopes that we will make mistakes in trading so that they can take advantage of us. The fact is that, despite our desire to trade on a regular basis, it may be wiser to refrain from doing anything than to plunge headlong into the raging waters and expose yourself to significant losses. You should keep what you’ve earned. If you cannot trade on certain days, you should hold onto your profits.

Plan your stoppages and your targets clearly

The first step towards taking a profit from a trading position should always be setting a precise take-profit level, as well as a loss limit line to minimize losses. Choosing a loss threshold, we can take before closing a position requires deciding how much we can afford to lose.

To pick the right SL level, several factors need to be considered. It is common for traders to fail due to a romantic attachment to an investment or coin.

I’m sure this trade will reverse, allowing me to exit with a small loss. That’s what a lot of traders tell themselves. Their egos are taking over.

In comparison to traditional stock trading, which has a volatility of 2-3%, crypto exchanges are much riskier: it’s not uncommon to see a coin drop by 80% over a short period of time, meaning you don’t want to be the last one standing.

The Fear of Missing Out: Be Aware

An example of FOMO is missing out on something. It is disappointing to be in a position to witness a particular coin experiencing massive gains in minutes because it is being pumped like crazy.

There’s another message in that bright green candle that I’ll tell you again: ” It is only you who is letting me go fast.” You have noticed that people are flooding on social media groups discussing the upcoming pump.

Then, how should we proceed? The answer is simple: keep going. The market could continue in this direction even if a lot of people caught the surge, but your best bet is to think about large holders actively looking for small investors to buy their coins for a cheaper price as we go up.

Since the price of bitcoin has become so high, it seems clear that only those small fish are currently on the cryptocurrency. Most often, a vivid crimson candle follows, triggering sales across the entire order book very quickly.

Cryptorisk Management:

There is a correlation between fat pigs and slain pigs. This statement becomes a little clearer when viewed from a profit perspective. You never want to aim at the leading position when it comes to being a profitable trader.

Across all of your portfolios, you should keep risk under control. If you are investing in a non-liquid market (a high-risk market), you should only invest a minor fraction in it. These positions will be subject to enhanced volatility; the target and SL will be set away from the purchase price.

The King is Bitcoin: Beware of Volatility

The reason why the market conditions are volatile is that altcoins tend to trade in opposition to Bitcoin instead of fiat currency.

As with almost any fiat currency, cryptocurrencies have a volatile price, which needs to be considered, especially when its price is rapidly changing.

Over the past couple of years, bitcoin and altcoin prices have been inversely correlated, like; during Bitcoin’s rise, altcoin prices were likely to fall compared to Bitcoin, or vice versa. It is unclear, to what extent a significant relationship has been established since 2018.

It is fair to say that the trading environment can be a bit foggy when Bitcoin is volatile. It is best to avoid trading in bad weather because we cannot see too far in advance, making it wise to set short-term goals to avoid losses or simply avoid trading altogether.

Altcoin Trading Tips You Must Know

Over time, the value of many altcoins will decrease. Though it may be true that it is possible for the value of these coins to diminish gradually or quickly, the very reality that the top hundred altcoins, as measured by market capitalization, have changed so drastically suggests quite something about how cryptocurrency markets function.

If you plan on accumulating altcoins over the medium in the long run, you should keep this in mind and choose them wisely, of course.

The best thing you could do is to follow the coin’s graph to locate periods of stability and lows. As the market accumulates, an upward trend will begin appropriately, together with the announcement of new projects. According to what I have mentioned above, In times of FOMO, it is not ideal to buy into a position. It is true what Buffet said: “Be afraid in a time of greed if others are afraid in a time of greed.”

A Brief Overview of ICOs, IEOs, and IDOs

In this context, public ICOs have been replaced by ICOs (2019) and later replaced by ICOs (2021), which IEOs eventually replaced. Some new projects are holding crowdfunding at the beginning of their development to attract investors by allowing them to buy shares of the project’s tokens at a discounted rate.

Investors are motivated by the fact it is expected to become tradeable on aftermarkets, which means the token auctions, and generate substantial returns for those who invest early. The market has seen a number of lucrative token sales over the past few years. ROIs of 10x on token sales have not been uncommon.

An example of an ICO that made investors money was Augur (REP), the first prediction market ICO in history, resulting in a 15x increase in ROIs in the first few months of trading. Over the past couple of years, several initiatives, such as Initial Exchange Offerings carried out on Binance, have generated substantial returns.

What’s the catch? Investing in projects like these is not a rewarding experience. Many of the sales carried out were complete rip-offs. There were not only trades, but a few schemes vanished with the funds.

Do you plan on investing in a certain token sale? If so, how can you decide if you should do so? This is an important element in how much funds the initiative tends to accumulate, which is part of what we wrote about. Those projects which receive a small amount of funding are likely to fail to turn their ideas into reality; on the other hand, the projects which raise an enormous amount will lack capital remaining after their tokens have been sold.

One aspect of risk management is more important than any other. Investing a significant amount of your portfolio in just one IEO, ICO, or IDO can be detrimental to your portfolio. Avoid investing everything in one project. There are high potential risks.

Beginner’s Trading Tips: Get Started Today

Fees: It would seem that multi-traders will end up having to pay a higher fee. Whenever you are a market maker, it is always beneficial and cheaper to post your new orders rather than buy from it (as a taker).

There’s no rush: Do not trade before establishing the right circumstances to make the appropriate choices and know what to do when to exit (do your homework). Under pressure, you will lose. Be patient! You’ll get another chance.

Stop bleeding and make gains: Place sell orders when you define your goals. In some cases, you may see a particular coin pumped (in return for reduced fees on the maker’s side, remember?).

Buying at low prices: This is an effective method for purchasing low-priced stocks and flash crashes.
A flash crash of over 60% occurred in February 2021 for Ethereum (the second biggest cryptocurrency). The price quickly recovered, so anyone holding a small buy order immediately made a lot of money.
Place a small bargains carefully; don’t discover when you’re a long way down the line how your purchase was executed and the price has fallen even further.

Create fake news: This rule applies to most traded assets, whether stocks or cryptocurrencies. The price may rise before the announcement is made when a parent company anticipates a positive announcement. At this point, the investor realizes their profit and sells after the announcement has been made.
There was speculation (according to rumors) that the DOGE price would soar once Musk mentioned Dogecoin on TV, since Musk would be participating in the main stage of the U.S. Main Stage. Even though it was mentioned – DOGE’s share price crashed by 20% following the episode (sell the news, I think). It appears that DOGE reached its all-time high of $0.73 at the start of Saturday Night Live.

Never buy again after disposing of making a prosperous trade, the coin immediately goes up again after selling it. Let’s introduce Murphy’s Law. First, ensure you read over the information here and avoid entering into positions impulsively or because you are FOMO-driven. Profit is the only thing that matters. You should proceed to the next trade without losing money.

Keep your ego at bay: Profits are more important than being right. Spend no time or money proving that you should have been in a specific job. Never assume that a trader will always be profitable. For the equation to be valid, the number of profits must be greater than the number of losses.

Profit Down: Profits can be made from bear markets sometimes, and sometimes it’s the best time to do so. To learn more about shorting Bitcoin and other cryptocurrencies, you should take the time to understand how it works.

MostTraders and Financial News need to be ignored

Traditional media typically publishes that the large majority of published articles are biased or put forth by a specific entity to promote that company or group.

The best use of your time is to read financial articles rather than the day’s headlines. Reading the news will not inform you when the next opportunity for investing arrives. In the other case, if it ends up in the news, other people will be aware of it, so it does not appear to have any value. It’s a matter of buying the rumor, selling the news.

Also, it’s best if you don’t rely on other traders’ successes when doing your analysis because you will complicate it. In comparison with others, you will only be leading unsafe FOMO behaviors. Unless you concentrate on your improvement and not buy coins based on the advice other players, you will not improve your skills.

Make a long-term plan

You must always keep in mind that you will trade for a reason; you might lose entirely in the investment process. You can reach your goals in many ways, such as retiring, buying a house, and resigning from your job.

In order to do this, you should set both short-term and long-term goals, and based on these, make trading decisions appropriately, like; never putting funds at risk that you will require directly on a short-term basis. The portfolio positions you take should be geared toward your ultimate objective, along with a managing risk strategy.

Instantly recognize crypto frauds

Despite the lure of altcoins, cryptocurrencies have also received a great deal of attention, which has resulted in many scammers entering this field. While it is revolutionary that a person is responsible for their funds and not a bank, it can also result in novices investing their savings away, believing that a “promising ROI” will come or that putting money in an ICO or IEO will “landmarks the future.” In contrast to typical banking, the cryptocurrency market is uninsured. Your funds cease to be yours once they have been sent.

Get a better understanding of crypto frauds by learning how to spot them. Unfortunately, A lot of scams out there. Despite the fact that many entrepreneurs are eager to borrow your funds, not everyone will use them appropriately. You should not waste time-wasting; instead, you should consider whether investing in cryptocurrencies would be better than contributing.

How Long-Term Portfolios Work

The foreseeable outlook for cryptocurrency is that only a handful of cryptocurrencies will thrive. By examining the leading 20 coins based on market capitalization, it is clear that, aside from Bitcoin holding the number one position, the rest has changed a lot over the past few years. A new bubble in crypto can occur anytime; you cannot time the market.

Unless Fiat, Profit Is Temporary

You should make sure that all of your crypto assets have a fiat value. Due to the fact that money of everyday life (dollars, euros, and the like) is based on fiat currency (dollar, euro, and the like), it makes sense to calculate the overall value of your portfolio in fiat currency.

The fiat currency will not get into your wallet until your wallet is credited with the fiat. Crypto traders can quickly lose their funds if they do not follow security rules. Since cryptocurrencies do not have insurance, it is possible to suffer a loss, even if you are a successful trader.

After selling their crypto, most individuals experienced seeing their fiat balances drop even though they held them on those exchanges. Mt. Gox, probably the most well-known collapse of this kind, occurred in 2014 when the market collapsed. But recent incidents such as Quadriga CX’s recent incident remind us that all exchanges are not created equal.

Conclusion

In the crypto sphere, things are moving very quickly, and much information is available. You can keep in touch by spending time with reliable friends who can share your trading ideas and basic technical and scientific information. There are members in Telegram and WhatsApp chat groups that deserve attention and members that shouldn’t be paid attention to.

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