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Top 20 easy tips for a cryptocurrency investor and trader

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The cryptocurrency market is very volatile due to its complexity and lack of regulation. And, although it is not customary to talk about this, the majority of its participants do not understand at all what is happening. If you are looking for a guide to trading in Bitcoin and other cryptocurrencies, this material will be useful to you.

When it comes to cryptocurrency, nothing can be sure. At best, we can try to predict something and hope that our investments will not disappear. Nevertheless, we also need to be able to predict, so we have 20 rules for beginners.

1. Remember that markets are cyclical.

Many beginners panic and leave cryptotrading after the first collapse of the market. Yes, he periodically falls, but you should not worry about it – as a result, he rises back every time.

2. Be able to distinguish between trade and investment

It is important to understand that a trader buys a cryptocurrency for a short period and sells it at a profit, and an investment is a long-term investment designed to become a source of income in the future.

3. Be sure to make a plan

It is impossible to enter the market without a plan – you need to determine your goals, make a plan and strictly adhere to it.

4. Do not trust too lucrative offers.

The cryptocurrency market appeared quite recently, and there are a lot of scammers on it. If you see an incredibly advantageous offer, most likely you are trying to cheat.

5. Do not compare the cryptocurrency market with the stock market.

The stock market has enriched many, so the novice investor thinks he understands how to make money from trading or investing. But when it comes to cryptocurrency , the situation changes, and this should be understood – otherwise you can just lose money.

6. Buy and sell

Many investors are trying to make money buying at a minimum and selling when the situation begins to improve. This may work in other markets, but here it’s better not to sell your coins.

7. Remember that this is a market with character.

The cryptocurrency market is large, but unstable. Nobody controls him, and it is very difficult to predict how he will behave. Do not even try to control it – it is simply impossible.

8. Choose advisors with care.

Novice crypto traders and investors are often mistaken, following the advice of others. The opinion of a professional should be taken into account, but do not blindly agree with him – study the situation and make your own decision. If you follow bad advice, you will blame someone (but not yourself), but it will not return the money.

9. Do not trust the news.

The cryptocurrency market lives, something always happens on it, and in an attempt to predict the near future, people often come up with news, and controversial analysts are a dime a dozen. Ignore the press and draw your own conclusions.

10. Learn to manage risk.

Risk management is a useful skill. It will allow you to make a profit, even if you make a mistake and lose half of your initial investment.

11. Study the behavior of prices and trading volume – they can say a lot

If you follow the price and trading volume of cryptocurrency, you can say a lot about its near future. To track these indicators, you can use CoinMarketCap or similar sites.

12. Do not keep coins on the exchange

The exchanges make it possible to store coins right on their server, but this is very dangerous: if they are not encrypted with the key known only to you, it means that you do not control them.

13. Invest in top ten coins.

Yes, you need to invest in different coins and diversify your portfolio, but trading in little-known altcoins is not a good idea. Buy only the most famous coins, and the chances of making a profit will increase dramatically.

14. Do not be afraid to make mistakes.

Mistakes happen to everyone, and even with cryptocurrencies and it is even more difficult to be sure that you made the right choice. But let it not bother you – any mistake is an experience.

15. Do not look for profitable deals – look for good investments.

Long-term investments are much more profitable than speculation – grow with the market.

16. Do not try to understand the market

The market is not rational, and often it behaves in a completely unexpected way. Predicting what will happen tomorrow is impossible: it can fall in the middle of an uptrend and vice versa. With this you just need to accept.

17. Trust your investment

The choice of the object of investment is the most important decision, but if you have already invested money in an asset, you should not change horses at the crossing because of the unsuccessful period. This happens every day. Be patient and everything will be fine.

18. Do not be afraid to trade

Fully realize your trading and investment potential. Act – and do not look back.

19. Be able to step aside.

Some cryptocurrencies simply do not have the potential – if the price of the coin and the market capitalization of the system continue to fall, and the trading volume does not shine, it is better to forget about such a currency.

20. If you missed a good opportunity – this is not the end of the world.

The market is a living being with its own character, so be sure, all the fun will happen when you don’t see it. It may be a deep night or a moment when you swim in the pool or dine – you will inevitably miss something, but you should not be upset about it, because a new opportunity is already waiting for you.