Crypto Frontline

Crypto Trading Tips

February 07
11:08 2018
crypto trading tips

Source: https://wetalktrade.com

Cryptocurrency trading is one of the latest trends when it comes to investing, but since this new industry has some particular characteristics, many people find themselves in some nasty situation and that is due mainly to their lack of knowledge. That is why we’ve designed this article with a few useful tips that could potentially help you in trading cryptocurrencies.

Tip #1 Understand the underlying value

There are thousands of cryptocurrencies out there at this point, but only a few of them represent some high-potential currencies. The industry is full of scammers and companies that promise high returns when their platforms are just Ponzi schemes. You do not want to be trapped in such a thing, as your investment could vanish. If you want to trade cryptocurrencies, you need to focus on the most popular ones and stick to them. Even though short-selling is an option and you can profit from falling prices as well, you need to trade on the upside as well sometimes. So, our advice is to focus those digital currencies that really have some special features and are able to solve the problems seen today in the financial world.

Tip #2 Choose a good broker

You need to trade cryptocurrency via a brokerage account, so you need to make sure your broker is trustworthy. Make sure the broker you are dealing with is regulated and work with a good liquidity provider. Liquidity is certainly an issue when it comes to cryptocurrency since the industry is still in development and daily volumes are relatively small, compared to other popular markets. Also, look at the broker’s reputation, see what reviews and feedback you can find about it.

Tip #3 Practice before you go live

If you are not used to trading cryptocurrencies, you should first test them on a demo account. Each particular asset class has a certain number of unique characteristics and you need to understand how those instruments behave. You do not want to learn those things while losing money. That is why our advice is to trade demo at least for a few weeks until you are tuned in and in line with the market mood.

Tip #4 Have reasonable expectations

We are overwhelmed with news articles about how a certain cryptocurrency had a 17,000% gain in 2017, or something like that. Most of the beginners are thinking about something like this: “Ok, if the price had risen by 17,000% that means I could have increased my account by 170 times”. Technically, that is not possible. You would have needed to buy at the lowest price and keep the position open all the year. Also, you would need to place an order with your entire account at risk. The point here is that you need to have realistic expectations. With a proper strategy and a good risk management, you can be very profitable but forget about getting rich in a year or less. That surely it is now going to happen. Even though you’ll manage to generate some high profits in a short period of time, you’ll give them back in a shorter period.

Crypto Trading Tips - overview
4.7out of 5
Trading Platform
4.8out of 5
Assets
4.8out of 5
Accounts
4.9out of 5
Customer Satisfaction

Summary: . Technically, that is not possible. You would have needed to buy at the lowest price and keep the position open all the year. Also, you would need to place an order with your entire account at risk. The point here is that you need to have realistic expectations. With a proper strategy and a good risk management, you can be very profitable but forget about getting rich in a year or less.

4.8 Excellent
4.8 out of 5
Share

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment