It might seem like a get-rich-quick overnight scheme, but for all the profits that are being made from cryptocurrency, there are also many losses. For every win, there needs to be a loser on the other side.
These losses often happen through dumb mistakes that can easily be avoided. But here in this list, you can find principles that are easy to implement. We often take these basics for granted.
Use stop-loss orders
Now you probably think to yourself, “I know this stuff already..” but these are the exact things that separate a great trader from a good one. A great trader does not let his ego get in the way of learning. Learn about stop losses, experiment around with them or get experiences from other people and tweak & adjust.
The use of limit orders
The usage of limit orders is seen as something that makes a negligible change, and they are in the short term. But in the long term, those extra costs are gonna get to you, eating away at your profits. It is easy to just use market orders to get your position instantly. And yes, in many cases, you would want to be quick. More often than not, there are actually fees with using a market order. Not much, but they are there. Plus, you are accepting any price the market throws at you. If this all sounds too complicated to you, it’s recommended to first learn about these things on sites like NextAdvisor.com.
Use a good platform for all your trading
This will sound like an obvious thing, but the platform you are using is vital! Not all platforms are created equal. Some may hold hidden fees, costs, or different disadvantages. Finding the best crypto investing platform is not very hard. By searching it online, you should have many results returned to you. A good place to start crypto trading is a place like plus500.com.
Trade with your brain, not your emotions
This cannot be stressed enough. But yes, sometimes arrogance gets the better of a trader and lets emotions trade in their place.
A strong trader knows how to detach himself from his emotions, take a step back and make rational choices rather than emotional ones. Sounds easy, but is it easy? Well, not really.
It’s a skill you must master, an ability you need to exercise.