Trading Guide 101: 5 Important Rules to Follow when Trading Bitcoin
The Internet is full of tips for bitcoin trading, tricks and rules for your cryptocurrency, but let’s face it, no one in the world can give you a fully proven strategy. Crypto markets, like everything else, are very dynamic and unpredictable, but there are still some important guidelines to follow. Read on to find out our fundamental tips.
Start with a smaller investment
One of the first rules for any form of trading or investment is to never invest more than you can afford to lose. The market is extremely volatile, which means that big swings can happen in just days, hours and even minutes.
It is wiser to invest a small percentage of your money when you are in the beginning. In this way you will be able to get acquainted with the market.
Diversify what you trade
Do not put all your eggs in one basket. By allocating your assets to a variety of cryptocurrencies, you can reduce your risk because different cryptocurrencies have their ups and downs at different times. You can also consider other options such as gold, silver or the traditional stock market.
It is also a good idea not only to divide your resources into different assets, but also to do it gradually over time, not all at once. This means not buying and selling at the same time, but doing it in small steps.