Trading cryptocurrencies is like any investment or other trading that needs money, money does not rain from the sky, but requires effort and fatigue to collect it, so through this article we would like to provide advice and trading advice to maintain the integrity of the financial portfolio.
1- Have a Reason to Trade:
He means and what we would like to say. Enter a position only when you know the reason for your entry, and put a clear strategy in mind.
Not all traders are winners because the trading process is based on a mechanism for one person to win, another must lose.
Big whales lead the alternative currency market, the same whales are responsible for putting huge blocks of hundreds of bitcoins into the order book.
Whales wait patiently for an innocent little fish to make trading mistakes.
Even if you are looking to trade daily, sometimes it is better to do nothing than jump into fast waters and expose yourself to big losses.
There are days when you only keep your profits by not trading at all.
2- Determine the stop loss:
For each position, a specific target level for taking profit should be set, and most importantly, the stop loss level should be set to minimize losses.
Setting a stop loss involves determining the maximum amount of losses we can bear before closing the position.
Many factors must be considered in order to choose the correct stop loss level.
Most traders fail when they fall in love with their current position or the cryptocurrency itself.
Some may say the situation will turn around and I will get out of this deal with minimal loss, I am sure.
They are leaving their ego to grips with them, and compared to the traditional stock market where 2-3% is considered extreme volatility.
While cryptocurrencies are considered more risky, it is not uncommon to find an 80% cryptocurrency in just a few hours, and no one wants to be the one who has coins from this currency.
3- Beware of FOMO:
FOMO or fear of missing out.
One of the tips that we repeat every time, and the fear of losing usually appears when a specific currency is pumped with huge double-digit gains in just a few minutes.
Where there is a bold green candle screaming at you:
"You are the only one who does not own me."
Exactly at this point, you'll notice several people talking about it and unknowingly entering it.
What is the verb then?
It's very simple: keep going, it is true that a lot of people ahead of us have probably gone up and the market could continue in one direction, but bear in mind that whales are waiting for smaller buyers on their way to sell the coins they have bought at lower prices.
4- Risk Management:
To be a profitable trader, never look for the edge and reach the top of the deal, but rather look for the small gains that will accrue to a big one.
Manage risks wisely for your portfolio.
For example, you should never invest more than a small percentage of your portfolio in a non-liquid (high risk) market.
5- Cryptocurrencies are traded against Bitcoin:
The underlying asset has volatile conditions in the market, and most major currencies are traded against bitcoin instead of fiat currencies.
Bitcoin is a volatile asset compared to any other fiat currency, and this fact should be taken into account, especially when the bitcoin price moves sharply.
In past years, it was common for bitcoin and altcoins to show an inverse relationship, that is, when bitcoin rose, the altcoin price fell against bitcoin and vice versa.
And since 2018 the relationship has become blurred.
When Bitcoin is volatile, trading conditions are hazy.
During periods of fog, we cannot look far ahead, so it is best to set close targets and stop losses or not trade at all.
6- You Should Have an Alternative Currency Trading Plan:
Most altcoins lose value over time.
The value may slide slowly or quickly, but the fact that the 20 largest crypto ventures by market cap has changed a lot over the past few years means a lot of conclusions.
When holding large amounts of alternative cryptocurrencies in the medium and long term, choose these currencies wisely.
If you are considering holding altcoins for the long term or building a long-term cryptocurrency portfolio, bear in mind that altcoin projects or currencies that have higher daily trading volumes and significant crowd support are likely to remain.
You should follow the currency chart and set low and stable periods.
These are likely to be periods of consolidation or accumulation on the part of the whales, and when the right time is accompanied by positive announcements of the project the pump will start and the whales will be sold for profit.
7- Initial Presentations for ICOs and IEOs:
ICO or IEO as it is now known in 2019 is an ICO for early investors.
Many new projects opt for a group sale contract that offers investors an early opportunity to purchase a share of the project's tokens at a reasonable price.
The motivation for the investors is that the token will be included in the market, that is, via the trading platforms, and will make a good profit for the early investors.
In recent years, there have been many successful symbolic sales, and returns on investment can reach up to 10x.
One example of this is the Augur coin ICO, which gave investors a phenomenal return on investment of 15x.
However, not all of these projects reward their investors.
Numerous sales proved to be a complete scam, not only were they not traded at all, but some projects vanished with money, and no news of them was heard again.
The main factor must be taken into consideration, which is the amount of money that the project aims to raise.
It is possible that a project that little is raised will not be able to develop a working product, while a project that collects a large sum will not have enough investors to buy the tokens in the market after its launch.
Most important of all is risk management, so that you don't put all of your eggs in one basket and don't invest too much of your portfolio in one IEO or ICO.
8- Start today, now:
Learn and read about the tips and tricks on a regular basis like this article.
Here are some practical tips that you can implement right away:
Fees, then fees: Having many trades means paying more fees.
Don't push yourself: Do not start trading unless you have the optimum conditions for making the right decisions.
Setting goals and placing sales orders: Always define your goals by placing sales orders.
A successful strategy should include placing low buy orders.
Buying Rumors, Selling News: When the major news sites publish a batch of news, it is usually the time to say goodbye to the currency in question.
You made a profitable trade, but as always the moment you sold the currency rose again, but as long as there is a profit, you are fine, continue your next trade and do not blame yourself for losing it.
Leave the ego aside, the goal here is not to be right in your trades, but to make a profit.
Don't waste resources (time and money) trying to prove that you must enter this or that situation
The number of winning trades must be greater than the losing trades.
Sometimes bear markets are the best time to take profits.
9- Does not give external circumstances more than its right:
Don't waste your time reading a lot of news.
The vast majority of the analysis posts and news published that you will find in the traditional press are biased or supported by a particular company or group.
It's best to invest your time in learning long-term trends by reading financial articles, and some daily news.
You will not find your next investment opportunity by reading the news, on the contrary, it is true: if it appears in the news, others must know it, so it may be worthless to remember buying rumors, selling news.
10- Identifying and knowing fraud operations:
Alternative currencies are very tempting, but remember that the cryptocurrency world has received an enormous amount of attention, which has brought many fraudsters to the market.
The idea that “you are in charge of your money, not the bank” is really revolutionary, but it can also lead to inexperienced beginners sending their money away, thinking of a “high return on investment” or investing in an ICO or IEO would change your financial position on The opposite of conventional finance, but it must be remembered that the cryptocurrency does not have insurance.
