Crypto trading is very lucrative but risky as well. One negative news and billions of dollers are gone from market. Yes, cryptos are very volatile. Then how to take profits from this uncertain market?
Here are top 5 tested tips and tricks you can make good profits from -
1. Keep Patience
In crypto trading the most patience player wins. Keep patience and never come in FOMO (Fear Of Missing Out). Patience and education is the key to success in crypto. So keep patience and educate yourself time to time about crypto.
2. Know Your Entry And Exit Points
Timing does matter in crypto market.
You should know your entry and exit points. For this you can use stop-limit/stop loss. Never do any trading without using Stop Loss. Exchanges like Binance and Bitterx provides such kind of facility for trading.
Investing for long time can be a good idea but I'll suggest you to book small profits time to time like 10%, 20% etc. This trick can minimize your risk. One more important point you should keep in mind that always withdraw your Principal Amount after making profit. Reinvest your profits.
3. Invest In Top Currencies
Don't just invest in any crypto currencies or tokens. Be selective. Invest in top coins. In my opinion investing in top 20 crypto currencies of Coin Market Cap can be a safe investment.
One more thing, read and research about the concept, technology and team behind the coin before investing.
4. Diversify Your Portfolio
Never put all your eggs into one basket. Yes, never invest all your money into a single coin. Diversify your crypto portfolio.
Suppose you have 1 bitcoin then invest it wisely. You should invest in 10 different coins, 0.1 BTC each or invest in 5 different coins 0.2 BTC each. This trick can minimize your risk and maximize your profit. If some coins are in loss then there is possibility that some coins will be in profit as well.
5. Be Selective for ICOs
Investing in Initial Coin Offerings (ICOs) can be huge profitable but there are huge risks also. NXT has given almost 697275% and IOTA 282300% return on investment since their ICO.
ICOs can either be fail or succeed. According to findings, about 59% of the ICO startups failed between July and September 2017. Lots of ICOs are only pure scams.
Never invest just watching any video on YouTube about any "potential" ICOs. Before investing Do Your Own Reseaech (DYOR) always. Research about the concept, technology, team, white paper and road map about that ICO.
Now a days, Leverage Trading is very popular. Here you can earn profit even in bearish market BUT.. Don't enter into the market only because some peoples are making money from it. If you don't have any idea about the market or system then educate yourself first. At first learn then earn.
One more thing I would like to add here that NEVER SELL YOUR COINS IN LOSS. If you are in loss just wait for some time. As we all know that cryptos are highly volatile. Some day the price will go up. Just keep patience.
More important, be aware from hackers, keep your account safe and secure. Use Two Factor Authentication (2FA).
Have a safe investment.
Tell me about your opinion. What do you think about the above points or let me know if you want to add some more points.
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(This is not any investment advice. This is only for educational purposes. DYOR before any kind of investments.)