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Trading cryptocurrency has become one of the most common options for generating income using digital assets. This is due to the high volatility of crypto prices. Look at any crypto chart, and you will see that cryptocurrency rates live are movable. Slight fluctuations are noticed throughout the day, which opens earning opportunities for traders who use daily trading. There are also sharp market leaps and drops shown on crypto charts in the form of candles. This article will discuss the main tips for crypto currency trading that may help beginner crypto investors succeed.
The Key Principles for s Trader to Follow
Here are some tips for a beginner trader:
- Education has no borders.
- Rely on yourself only.
- Assess risks.
- Pick a strategy and adhere to it.
- Remember about diversification.
Let’s discuss some of these tips in more detail.
Education
Statistics show that only 5% of traders increase their wealth yearly, while the other 95% remain at zero or at a loss. Being a profitable profession, trading is also a way of life. It can take a long to understand how the market signals work, decipher charts and determine trends. You got to read technical books and keep track of the market news and updates. You have to learn a lot of things from scratch, including stress management.
When you start trading, preparing yourself for possible market crashes and price corrections and the possibility of losing all your invested assets is crucial. Such emotions as fear or greed will always be present in every trader’s life. Once you learn how to deal with emotions, you get a real chance of success.
Risk management
Trading is not gambling. It is not a casino game. It requires thorough research and basic knowledge of the market, including risk assessment. Borrowing money for trading will not bring fruit because, in this way, you stop thinking analytically and succumb to your emotions. Thus, you are unable to weigh decisions, which will inevitably lead to losses.
Diversify your portfolio
You should not focus on one cryptocurrency – better diversify your investments. For example, choose 3-4 coins from the top 10, 2-3 from the second and 2-3 unknown but, in your opinion, promising ones. Possible losses will be covered by profits from other, more stable positions, of course, as long as there is no overall market collapse.
To start cryptocurrency trading, visit the WhiteBIT platform and try demo trading to receive the needed confidence, skills and experience.
