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.
Don't rush your decision
Trading emotionally is currently the worst thing you can do. The fear of missing something can be a real killer, especially when you see coins rising fast and you buy at a high value, then drop sharply and you sell at a loss in your panic.
Patience can be very helpful unless you have a good reason (based on your own research) to believe that the opportunity is good for you to buy or sell. This leads us directly to the next point.
Do not try to predict the market
One of the sacred rules of trading is to buy at a low price and sell at a high price. This is often easier in theory than in practice, which means that some people - because of the already mentioned hasty decisions and panic - constantly buy at a high price and sell at a low price.
Don't lose your temper
In today's dynamic market, anyone can make a mistake quickly, even following every possible piece of advice in the books. Unless you have invested too much (which is the first thing you should not do), then possible losses should not have a drastic impact on your life. You need to look at any gains or losses as a lesson to move forward. Keep calm and trade!