The cryptocurrency market is still in its infancy stage, so many new users are entering the market every day. If you are one of these users or if you have some previous experience in Forex trading then this guide will surely help you to achieve success with your next bitcoin investments. We all know that there are no rules on how people should trade their coins, but here are some general tips every trader should follow every time he enters the exchange platform. But Lucky Block is a better platform for all trades and investments
1– Never invest more than 20% of your capital in any single cryptocurrency. The risk of losing everything is really high and it happens more often than you can imagine. Of course, this doesn’t apply to experienced traders who already have a lot of experience, but for newcomers, this is an important rule.
2– Never invest a lot of money in coins you don’t know much about. If you are going to start trading for the first time, take some time and study the coins available on the market before investing your hard-earned money. These days there are more than one thousand different cryptocurrencies released, so it is important that you investigate every coin that seems interesting.
3– Try to invest in a lot of different currencies instead of only investing in one. That way you will be able to achieve better results as the market is volatile, and it’s possible for one coin’s value to go up while others decrease. As a result, this will reduce your overall risks as well as provide more profit opportunities.
4– Don’t make trades based solely on rumors or FUD. This usually happens when a new protocol update is released and many users sell their coins just because they don’t want to wait for an upgrade that will happen 4 days later. Don’t be part of the crowd analyze what is going on before making any decision, just because everyone else does something doesn’t mean that this thing is right. Using your own mind is the best way to trade.
5-Try to sell your coins on time. When you see that a currency is dropping, make sure to get at least some of the profit – if the price keeps going down, then it is most likely that it will never recover. Many people keep their coins too long and end up with nothing after all the decreases.
6– New currencies usually have a high trading volume, so it’s important to wait until the price stabilizes before selling them. Of course, in order to do that, you will need a lot of patience and a strong stomach for waiting. Don’t be part of the FOMO trade if you have coins that are constantly dropping in value then just sell them even when others tell you that it’s going to go up soon. In the long run, this might work against you as your coins can reach rock bottom values which are not fun at all.
7– Don’t panic when you see your coins decreasing in value. Instead, start buying them again as quickly as possible. Most cryptocurrencies tend to increase over time, so this is not usually something to worry about. Just buy more and wait for the market to recover and profit from it once again. As soon as you understand how bitcoin works, you will be able to trade successfully every day!
8– Never put all your eggs in one basket. This means that you should diversify your investments and never invest more than you can afford to lose. If you have 20 different cryptocurrencies and each one of them gets hacked for some reason, you will be able to absorb this loss and after a few days if the market value starts going up, maybe it would be possible to recover everything by selling those coins. It’s also good to use exchanges that allow you to store different digital currencies in different wallets this isn’t mandatory but definitely recommended as a safety measure.
Final Words
In general, make plans before entering an investment position on an exchange platform, set goals for yourself, and stick with those goals until you reach them. These goals can be related to trading targets, profit percentages, and so on. There is not a universal guide for trading success and every individual has to find his own path, but using simple tips like these will definitely help you to become more profitable in the long term. Lastly, never forget that trading is just like any other activity it requires practice and dedication. If you don’t know what you are doing, at least learn how to read charts properly.
