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15 Best Tips for Trading Cryptocurrency

15 Best Tips for Trading Cryptocurrency

Losing can be expensive, especially when dealing with crypto, every trader knows that losing one’s coins through trading is not fun.

What’s fun is making successful trades with huge profits. However, it is also highly risky. You can win and lose a large amount of money quickly if care is not taken.

As a trader, certain precautions have to be in place for you to trade without pressure; who am I kidding, the pressure will always be there but it will be mild and controlled.

From experience, Immediate Edge is one of the few trading platforms that guarantee your peace of mind while trading, profit is assured and you even learn how the market works in the process.

The best tip I can give you out the gate is; a major aspect of trading is mentality. If you are not in the right mental space, then there are bound to be mistakes while you trade, this is 100% guaranteed.

Hence, to avoid such mistakes, here are 15 tips that can help you be in the right mental space to trade, as well as maximize your profits.

1. Have a Sound Motive for Entering Any Trade

The emphasis on this first tip is having a sound motive. An example of having the right motive could be that you’d like to understand the market better, study its trends and know what strategy works and what doesn’t work per time.

Many a time, having the wrong motive can cause a trader to become hasty, and being hasty is like a two-way coin, you either get heads or tails.

Sometimes it is better not to gain anything on a certain trade than rushing your way into losses, and from years of market analysis, we can comfortably tell you that on certain days or periods, you can only stay profitable by keeping off some trades

2. Trade Crypto with a Clear Strategy

Having the right mindset and strategy matters when it comes to trading. There is always risk associated with cryptocurrency trading. No matter how much you have prepared or accomplished in crypto trading you must calculate the percentage of risk you can afford. Never invest money which you can’t afford to lose.

3. Stay Up to Date with Trending Cryptocurrency News

Important to follow the recent Crypto-market happenings if you want to make a consistent profit as a crypto trader. The information gained from news platforms allows crypto traders to predict the ups and downs of the Cryptocurrency market and also know more about crypto trading platforms and confirm whether they are legit like this article on Immediate Edge Review.

4. Set Profit Targets and Make Use of Stop Losses

A smart trader should know when to get out of ongoing trades, irrespective of if that trade is making a profit or not. 

Establishing a clear stop loss level helps traders cut their losses; but, knowing when to do this is a skill that is very rare to find in most traders.

It is advisable to not get carried away by your emotions at this stage – a great point to set your stop loss is at the cost of your coin. If, for instance, you acquired a coin at $600, set that as the minimum point you are willing to trade your coin. This will ensure that you can still walk away with what you invested in the first place even if the market takes a huge dive.

The same applies to profit levels. you should target to get out of the market after hitting a certain minimum profit. Be content with your winnings and don’t tempt fate.

5. Manage Your Risks

Successful traders never run in the direction of massive profits, rather they stay put and gather small but sure profits from regular trades. This doesn’t mean that you shouldn’t maximize opportunities; no, but to manage risk, you shouldn’t always go with the crowd.

6. Don’t Buy Simply Because the Price is Low

A common mistake we make as traders is buying a coin because its price seems to be low. For instance, someone who goes for Tron rather than Ethereum simply because the former is much cheaper is making a huge trading mistake. If choosing the former over the latter is for holding, then it’s fine but when it comes to trading, the latter trumps the former hands down.

The decision to invest in a coin should have very little to do with its affordability but a lot to do with its market cap.

7. Choosing the Right Cryptocurrency for Trading to Profit

Most Altcoins lose their value over time, sometimes very quickly, this goes to show that cryptocurrency is very volatile.

Finding the right Cryptocurrency which has some weight behind them isn’t always easy, that’s why in-depth research is essential to choose Altcoins which have high or medium daily trading volume and have a broad community with continuous development.

8. Avoid Crowd Sales (ICO)

ICO stands for Initial coin offering. Many newly launched crypto coins and soon-to-be-launched coins offer crowd sales for the investor, i.e., the opportunity to buy it at a discounted price for some time.

This is done to increase the trading volume of the coin from the jump.

Sometimes it yields a good profit for the investors as currency value doubled or tripled in respect to a crowd sale price.

But many coins proved to be a scam, either they are traded for a day or two then they disappear, or they run away with your crypto.  So be cautious when a newly launched project offers crowd sales.

9. Use Hardware Wallets to Store Your Coins

After completion of the crypto trade, it will be more secure to store your coins in a hardware wallet.

The most recommended and trusted hardware wallets are Trezor and Ledger Nano A

10. Avoid Trading Cryptocurrency as Your Primary Source of Income

It’s been noted that most traders are at their best when trading isn’t their main source of income.

This way, the emotional burden is easier to control and maintain if your day-to-day survival is not dependent on it.

Otherwise, this can lead to some desperate and drastic decisions because eliminating emotion is significantly harder to do when one’s livelihood is at stake. 

11. Diversification is Key

Since cryptocurrency is unpredictable, the best way to get past uncertainties is to diversify. When BTC loses value against the dollar, all other coins lose their value and vice versa too. In such a case, diversification can be a great tool for survival in the cryptocurrency market.

12. Don’t Be Greedy

If you get too greedy like a hog, you can end up losing it all. Never look for the peak of the movement.

Look for smaller profits that will accumulate into a big one.

13. Beginners Should Start with Minimal Investment

Only trade with funds you can afford to lose. If you are new to trading cryptocurrency then there are very good chances that you will lose before you start gaining. Don’t lose heart though, with practice and time comes skill. Gain as much experience as you can because there is no alternative to experience

14. Trading the Trends

You have to be able to read trends, then trade in the direction of the long-term price.

For instance, the financial market has long-term price trends in which the overall motion of price will be in one direction for weeks, months, and even years.

Of course, the price will move up or down all the time, but an apparent trend will be visible.

15. Crypto Technical Analysis

Technical analysis means studying chart patterns to predict the future price of a cryptocurrency. Technical analysis is purely based on past price/volume patterns and trends of a coin.

A technical analyst will analyze the past patterns and trends which will indicate the direction of price movement.

They search for continuous patterns as well as repeated patterns of a coin to analyze whether the trend will be ongoing or it will reverse at some point.

Hence, by studying past chart patterns and trends of a coin, you can forecast its future price movement.

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