Everyone wants to invest in cryptocurrencies. They are an attractive investment option and become more so when someone we know earns a ton of money in a short span. But such people often fail to mention the best practices of crypto trading to us. In this article, we are going to introduce you to 10 things that you must know before investing your money in crypto trading.
Keep your email address safe– People are always entering their email addresses at every place, logging in with Google. Over time, such emails become vulnerable due to various sites getting compromised. Always make accounts on crypto exchanges with email accounts that are not regularly used everywhere.
- Know why you are making the trade
Know exactly how much profit you want to make and how much you can afford to lose. Once you have that profit in hand, make the trade. But have patience, just because something started dropping, doesn’t mean it won’t rise. If it is above your minimum limit, keep it.
2. Make use of sell targets and stop-loss functionality
Many exchanges provide this functionality that people often fail to use. It lets you buy and sell cryptocurrency when it reaches your desired price. This helps you earn profits while avoiding any losses.
3. Use a reliable crypto exchange
Use a Crypto exchange that is well established and reputed in the market (like Binance, Bittrex, Coinswitch Kuber, etc.). After all, it is going to be the marketplace where you exchange your money for crypto assets. You don’t want a scammer exchange to be doing that for you.
4. Use a reliable Crypto signals provider
Use reliable Crypto signal providers like MYC, Cryptohopper, and Crypto Classics to make profitable trades with ease
5. Know how to keep your crypto wallet safe
The first step to keep your crypto wallet safe is to choose a safe and reliable crypto wallet (like Coinbase, Coinsmart, Gemini, Trezor, etc.). Read more about crypto wallet providers, types of crypto wallets, and then decide on one. There is a hot wallet, cold wallet, hardware wallet, or paper wallet. Each one has its own utility and security level.
Initial Coin Offerings have given huge ROIs to the initial investors of many cryptocurrencies. However, as public opinion swayed in the favor of ICOs, many scammers have started going for crowd sales as well. So, even if you apply for ICOs, research more about the coin you are buying.
7. Start Small
The easiest way to lose all your money is to invest a lot when you know nothing about it. It is suggested to use a small amount to learn and get a feel first.
Never put all your eggs in one basket. The Crypto market is a volatile one. No currency comes without risk. It is always smart to diversify investments to reduce risk.
9. Market Research
When you are ready to become a crypto trader, do not just rely on free crypto signals, make a little bit of market research. It can take you a long way in your crypto journey. Learn about Financial and technical analysis, read educational content provided by crypto exchanges, crypto signal providers, and other stakeholders. Apply this knowledge to enrich your own crypto trading experiences.
10. Beware of Schemes, Scams, and Greed
The second riskiest thing in crypto trading after volatility is scams. Many scams are going on in the crypto market. If you are ready to jump into every ship that offers you a lot of money without much effort, you are likely to get scammed. Keep your emotions and greed aside while trading crypto.