It is difficult not to notice how cryptocurrency trading and investing gain steam. If it was still a dream-like idea five years ago, not taking part in crypto exchanges is available to anyone regardless of their income or social status.
Today, when digital coins have grabbed the attention of the whole world, we all, deep down in our minds, have the idea of getting into the exchange business. The factor making crypto more attractive for ordinary people like you and me is the appearance of Altcoins.
Sure thing, purchasing Bitcoin isn’t for everyone’s budget, especially now, when it has reached the unbelievable price of 47,107,40 USD. So, having Altcoins with us is an excellent reason to try making money on exchanging them.
This article is not aimed at warning you how risky crypto trading is or making you change your mind. If you are here, this means you know the pluses and minuses of owning cryptocurrency.
Yes, risks are present in every exchange, and investors should know it no matter how much you will exchange. But if there is already a burning desire in your heart to try it out, why not? In the end, it all turns out to be a precious experience which, in case of success, becomes a good source of income and in case of a failure shows you how you should not invest next time.
This short read is mainly aimed at giving newbie traders a few good tips to follow to make wise financial decisions and remain safe when trading online.
Follow These Pieces of Advice to Trade Crypto and Not Lose Your Coins
First, if you are relatively new to the sphere of crypto trading, let us remind you what cryptocurrency is. This is vital at the initial stage because only a small number of people understand the essence and nature of this currency.
So, cryptocurrency is the type of money that exists only in the electronic format and is known as digital money. It has no physical form and no need for the government to print it. Crypto is the code that is treated as money and has intrinsic value.
Now, when it is more or less clear about the nature of crypto coins, let us see some proven tips about owning and trading crypto for your benefit.
Tip 1. State your motive.
Before actually entering a trade or choosing a specific coin, you must define a purpose for pooling money into crypto. Is it a chance for you to get your business a level higher, or are you simply surrendering to the hype? Is it a conscious desire or just a chance to try out a new way to invest?
Answer these questions as honestly as possible since this will determine the outcome.
Tip 2. Identify your profit goals.
An excellent strategy to remain safe and not lose everything until the last penny is knowing how much you want to earn and when to stop.
For example, setting a profit goal means that you want to get specific minimal spin-offs, and you stick to this number anyway. Even if the situation tells you to wait and take a more significant profit, you aren’t tempted by greed and take what you defined for yourself as a profit goal.
The same principle works with a stop loss. This is very simple and, in the case with an Altcoin’s price, for example, means that even in an unsuccessful trade, you will take away what you invested at the start. So, if you bought your coin at 2,000 USD, this will be the lowest possible point for you to trade it this time.
Tip 3. Store your coins in a safe place.
Now, you need to understand what kind of wallet you want to trust with your coins. You can store them online and offline. Cold, or offline wallets, are usually better protected from jacking. However, hot wallets might be easier to use for a newcomer. At the start of your crypto journey, we recommend that you try both storage options and see which turns out more convenient.
Tip 4. Choose instruments carefully.
Along with worthy websites for crypto exchange, today, we, unfortunately, have got a lot of scams. So, be mindful of what a service offers. If its promises sound too good to be accurate, and you can only see the feedback from users who earned millions there, this is a sign of trouble.
Instead, choose official places that give you realistic expectations. Many of such services have been around for ages – Coinbase, Kraken, Binance – and offer good instruments for exchange such as price calculators and safe methods of payment and withdrawal. One of such places is Bitcoin Digital. Despite being a young service, it works under the same conditions as the golden-standard services and guarantees anonymity and security.
Tip 5. Don’t place all of the eggs into one basket.
If you invest in only one crypto coin that you think is a thriving one and will grow, you might be choosing a slick path. Being famous doesn’t mean that the coins will bring you profit. So, don’t invest all of your assets in one cryptocurrency like Bitcoin. Try purchasing different types of Altcoins. Even if the price of one of them falls, another one will remain costly since the values of all coins cannot decrease at the same time.
Crypto trading is a tricky but exciting business, and now we hope that these tips will help you invest better and receive the rewards of your patience. Remember to clearly define your motives and goals, set profit and loss limits, and use only reliable tools for your trades. In this case, you have much higher chances of succeeding in trading.