With the fall of the mighty Bitcoin and the swirling ebb in the crypto market after a dark Saturday, many of us really don't know for sure what to do. To take full advantage of the opportunity and make sure your crypto trading is always profitable (or at least not make you suffer big losses), you must always keep your interest in front of certain things in order not to make a mistake.
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Here are 10 important things to keep in mind in crypto trading:
1. The cycle of crypto news
Experts have labeled the crypto market a 'speculative market'. This is true because news easily skewed (changed) the market's direction. It has the ability to change the price of a cryptocurrency either up or down depending on whether the coin in question involves negative or positive news. For example, on April 19, the price of Ripple (XRP) surged 4% within 17.6 hours, amid media constantly reporting XRP announcing new partnerships and expanding ranges. work.
This is one of many examples that prove that updating crypto news is extremely important for any trader who wants to make better trading decisions.
2. Buy rumors
"Buy the rumor, sell the truth" is a well-known piece of advice in the crypto space, unfortunately, when it comes to cryptocurrency trading, a lot of traders work on emotions and throw this advice out the window. .
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3. Follow Bitcoin
Bitcoin is described as the mother of all cryptocurrencies, perhaps that is true. Bitcoin is not just the first crypto, but statistics show that Bitcoin and Altcoins have a fate: to share the market.
Evidence has proved that when the price of BTC undergoes a strong pump, the price of altcoins will drop significantly, this is because traders are exiting altcoins and trying to make money from the pump of BTC. Therefore, when the price of BTC falls, altcoins will be pulled because traders are completely exiting the crypto market and moving to fiat. So tracking Bitcoin is a great way to be aware of market sentiment.
4. Avoid being trapped in a coin
When researching on which coin is feasible, an inexperienced trader often has a strong attachment to a particular coin and therefore will invest it all in one. This is ENTIRELY! Experienced traders always look at the bigger picture by diversifying their portfolios to increase their chances of making more money while reducing their risks.
5. Avoid trading in pressure, hurry
The act of manipulating the crypto market is usually done by using FOMO, fake news, pumping prices, ... This will put pressure on traders, causing them to panic and make mistakes. Before trading, make sure you do your own crypto research and ensure that you are responsible for your transactions, not that you trade under pressure from FOMO or fake news.
6. Your profit goals
Before jumping into any deal, it's important to know where you are going. Specific profit goals will help you determine what your goals are for each trade. It will help you get rid of emotions during trading and keep your interest in price.
Keeping your emotions in trading is one of the most important strategies for your success. You can find out more at this paragraph by Blogtienao.
7. Always keep greed under control
Greed is inherent in every trader, but whether you control it or not is how to separate you from ordinary people and bring you closer to the successful group of traders. If you have decided on HOLD, make sure you do it; If you decide to SELL at a specific goal, make sure you do it, ignore greedy thoughts and stick to your plan which is extremely important to help you trade successfully. DISCIPLINE is a trader's best friend.
8. Implement appropriate risk management
Effective risk management in trading is the culmination of experience, they will help you minimize your losses and risks. This action includes the following steps:
- Use stop loss order for all trades
Invest a small amount in your portfolio when the market is not the liquid market *.
- Do not put "all eggs in one basket". Diversify your portfolio.
* Liquid market: is the market with many bids and offers, the difference between the bid and ask price is low, low volatility. Liquid market is a market with high liquidity, when in the liquid market it is very easy for you to conduct transactions quickly at a desired price because there are so many buyers and sellers.
9. Select the appropriate trading floor
Cryptocurrency trading is done on the exchange, right? Yes, but that doesn't mean every floor is good for you. You have to do some research to find the floor that suits your requirements. Not all floors are the same; They vary by policy, transaction fee, volume, reputation and security system.
For example, some exchanges may accept some fiat may not. You may have to experiment a bit, but most importantly, you have to do your own research because when choosing the right broker, they will be profitable for you in the long run.
You can find out more about this in the article: How to choose the most secure exchange by Blogtienao.
10. Price analysis tool
Crypto trading is not simply about buying when prices fall and selling when prices rise. A lot of other essential skills to help you get the best deal. One of those skills is understanding the price analysis tools.
You need to understand the concepts such as trend lines, moving averages, support and resistance levels, volume of trades, etc. Trend identification is very important in making a profit from your trades; however, this is not easy in the crypto market due to its volatility. The good news is that some websites offer tools you can use to help identify and capitalize on trends.
At Blogtienao, every morning, we provide daily Bitcoin price analysis; and every Tuesday, Thursday, and Saturday, Blogtienao always provides you with the analysis of the top 10 coins every 12 noon. Welcome for watching.
To be a successful professional trader, you need a lot of time, patience, practice and discipline. Besides, updated information from leading websites like Blogtienao will help you get the most important news - knowledge, honesty and fastest. Blogtienao hope this article will bring you a lot of knowledge and useful information.
According to Medium
Translated by Blogtienao.com