If you at least have tried cryptocurrencies trading, you will know that trading can be tricky. Therefore, you need to know as much as possible to do everything correct and earn big profit.
If you’re reading this article, you might know that altcoins with small capacity always have a great chance for massive gains. But since cryptocurrency market is complex and fast changing, you have to protect yourself with shield of knowledge. These are 5 tips for your successful trading.
1. Always Watch How Bitcoin Shifts
You might be wondering isn’t this post about altcoins
Yes, it is, but the main asset that drives change on the Crypto market is still bitcoin. Bitcoin is top cryptocurrency and at the same time, the standard of cryptocurrency. They have strong brand name that affects all other coins. When altcoin market shifts significantly, take a look at bitcoin’s market first.
You have to be noted that bitcoins and altcoins have an inverse relationship. When the value of altcoins decreases, bitcoins gain value. On the other hand, bitcoins usually fall when altcoins rises. So, if the crypto market is volatile, you should be in touch with latest news of bitcoin.
2. Don’t Enter a Trade in Rush
This is a common mistake among novice traders that you should definitely avoid. People who are new to trading often enter in rush, and most of them lose big.
For example, a particular coin is on bull, and you have executed an order slightly lower to current price. But you are not in it, and price keeps rising. Here, you should leave them and forget about it, but most of the people has fear of getting left behind, and enters the trade with high price.
Instead of doing such action, just wait to see how it ends. This is basically the best decision you can make in this case. You are just not invited to that trade, but someday, you will be. Doing so really does raise the chances of losing big.
3. Take Breaks
Cryptocurrency market rapidly changes and needs a lot of your attention. But that doesn’t mean that you should be checking how your investments are doing all day long. Of course, checking your investments and seeing the rise is amazing but you should also remember that you’re leading yourself to a greater risk of developing obsession to trading. This may bring serious negative impact to your life and your trading.
Take breaks and make certain schedule and stick to them. Fresh mind and reasonable breaks increase the chance of making good trading decisions.
4. No Altcoins for Long-Term Investments
Unfortunately, most altcoins lose their value over time, and you should have this in mind before executing some trades to keep them for medium and long-term investments. Chances are high that it would be a bad decision to having an altcoin for long term because it’ll become much less valuable.
5. Don’t Day Trade
If you need to improve your knowledge of trading, day trading is a bad idea. Even for experienced traders, they need to takes a lot of time and effort to win in day trading.
If you are day trading an altcoin of your choice and you have a rule of closing your position when you earned 10 percent, but when the price rose over 10 percent, there’s a high chance that the price will keep increasing. This way, you’ll miss an opportunity to earn more.
Instead of day trading, try to buy and hold your coin for a bit longer. This strategy increases the possibility that your trading will be much more successful and less stressful.