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TOP 5 Tips for Beginning Cryptocurrency Traders

A novice trader looks at the charts of the growth and fall of the value of cryptocurrencies

Every day, more and more people decide to become a cryptocurrency investor. Especially, such a trend is noted after the next increase in the bitcoin rate.

This virtual coin has already proven itself well. And, judging by the words of experts, this year it will only get more expensive.

Below are some tips for novice traders to follow to avoid the most common mistakes. So, TOP-5 basic recommendations beginners.

The content of the article:

  • 1. Learn, develop and analyze
  • 2. Communicate with experienced colleagues
  • 3. Correct distribution and storage of finances
  • 4. Buy low – sell high
  • 5. Don t be nervous about trifles

one… Learn, develop and analyze

As a beginner in the field, you need to study information and analyze received knowledge. Self-development plays one of the main roles here.

Important go deeper into the topic:

  • study the basic terms and understand what they mean,
  • explore the varieties of cryptocurrency (the most popular, to begin with),
  • subscribe to thematic news channels and blogs of leading traders,
  • understand blockchain technology,
  • learn about which exchanges are the best to trade and which wallets to use to store currency.

2… Chat with experienced colleagues

If there are no acquaintances who are well versed in this topic, need to join existing thematic chats

There are a lot of them, including in telegrams, vibers and other social networks.

There, in real time, you can discuss the latest news, consult on strategies, exchange experiences, observe the behavior of professionals and their actions.

One of the most visited chats is “De Center Trades“. There are about 10 thousand real users who are constantly discussing the latest news from the world of cryptocurrency.

3… Correct distribution and storage of finances

It s no secret that lately, hackers are very aggressive and no exchange is 100% protected from hacking.

Therefore, experienced investors are advised to keep their savings in several cryptocurrency wallets, and not on the exchanges themselves.

This distribution is based on the principle “all eggs cannot be kept in one basket”. Separately, it is safer and the level of safety will be higher.

As for the distribution of funds, it is recommended to spend on each coin not more five% of the total budget

In the event that $ 50 is invested, then it is worth buying 10 different cryptocurrencies. Each of them is 5 bucks.

In the event of a strong collapse in the price of one of the species, there will be no significant loss. The capital growth will come from the remaining 9 currencies.

The level of income is best measured with bitcoins, they are the most stable and will grow in value.

4… Buy low – sell high

All seasoned investors converge on this newbie tip. They recommend adhere to the strategy of buying in periods of low and selling in – high.

Anything cheap tends to get more expensive over time. Need to have endurance and patience… There is no need to rush to the sale.

If there is clearly no growth, you can sell the cryptocurrency. But, never, you can not sell assets cheaper than their value at the time of purchase. This is a notoriously losing strategy.

five… Don t be nervous about trifles

Often, false news appears on the network, which cause massive fluctuations in the financial world. This fake news is created specifically to raise or lower the rate of something, be it bitcoin or the dollar.

News should be read constantly, but not taken too emotionally. You need to analyze information and learn to distinguish the real from the fictional.

In this case, a chat on interests will come to the rescue, where you can exchange opinions with colleagues about the information you hear.

Important rememberthat the faster the price of a coin has skyrocketed, the lower it will soon fall. So do not twitch over trifles.

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Post Author: Rachel Reinbauer

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