Crypto Market, with its much larger (ROI %) than the Stock Market, creates a real fascination around the world. If you're lucky or experienced, on Crypto Market you can make 400-500% in a week.
These fascinating winnings, unfortunately, attract many adolescents. In fact, many of them are 16-20 year olds. Here we have a problem. A 16-20 year old person is not ready for the Crypto Market. I am referring to the fact that a young 16-20 years old is not mature emotionally. A successful trader has to master his emotions very well. In fact, trading is the battle you take with yourself, not with the market.
When you know very well and know how to keep your emotions under control, you will become a very good trader. Second, anyone entering the Crypto Market should have minimal knowledge about buying and selling, buying positions management, how to choose a good currency, not a scam currency. Go blindly on Crypto Market, it is to donate your money, whales. I was amazed when I saw forums commenting like, "I bought the $ 100,000. Why did not the price rise? How does this work? "
Or someone thought that the price of the coin was given by a random number generator. He had not heard in his life of demand and offer. He did not know that the price was changing according to demand and supply. For those who want to get into Crypto Market but do not know where to start, I have some tips below. I have over 10 years of trading on various capital markets, but now I am also aware of these rules.
Here is a classification of the capital markets in terms of risk. Number 1 is the least risky market, and number 5 is the most risky market.
- Bonds
- Stock Market
- Crypto Market
- CFDs, Gold, WTI Oil, Futures
- Forex
As you can see Crypto market is in the middle of this ranking. Capital Markets at No. 4 and 5 have all leveraged trading instruments very similar to smart contracts (X2 to X5) that some of the crypto exchanges have. The only difference between intelligent crypto contracts and other leverage instruments is that they are much more risky. The leverage of CFDs, Gold, WTI oil, Futures and Forex varies between X50 and X1000.
I do not know how many beginners are aware of the fact that the Crypto market is a rather risky capital market according to this ranking. Many have not traded a stock listed in their stock but have come to trade directly on the Crypto market. Because of this, many have no idea what trading means and some basic rules to minimize risk and be profitable.
Crypto market is not a children's play. Who thinks this is wrong. Crypto market is very similar to the Stock Market, but the gains are much higher (%). Also the losses can be much higher. Before going to the rules, we have to say a few words about how to choose the exchange from which you will buy the coins. Secondly, we have to say a few words about the wallet you will deposit your coins.
Make the world's best currency exchange research on the internet. Top 5 exchange crypto, for example. I recommend three exchange houses: Bittrex, Kraken and Bitstamp. I do not recommend Poloniex for it's a slow platform. Kraken has the best fees and has SEPA transfers. Bittrex has a lot of listed coins. On Bitstamp you can buy directly with the VISA card at very good prices.
Once you've verified your account on one of the sites above, it's time to look for a wallet that's compatible with the coins you buy. Basically, it's a good idea to use the official wallet of each coin. There are coins that do not have an official wallet. There are wallets that offer storage for multiple coins. The safest are the cool wallets running on the PC. Those at risky wallets are those installed on mobile phones. Remember that you can lose your mobile phone or worse, it can be stolen. There is also a variation of paper wallets, or wallets on web sites. Each of these variants has advantages and disadvantages.
The most important thing is to save your passwords safely and find out how to recover your wallet in case your HDD or SSD is broken. It is good to have this data saved on a stick memory.
Let's go to the rules for the Crypto market. It is good to follow these rules if you want to make money here. If you do not respect them, you might donate "whales" (people or institutions with a lot of money that initiate and drive up or down trends). If you think it is beneficial, you can save the rules below in your computer.
Never invest, more than you can afford to lose. In short, do not put all the money saved by you here.
Buy cheap and sell expensive. It is the basic rule on any capital market.
Buy two or three top 10 crypto coins. It's a good idea to have a portfolio of two top 10 coins to protect you against risks. If you happen to buy just one coin and even have trouble after you bought it? It will not be good if you only have one coin. If you bought two or three coins, the situation improves. On one of the coins you will lose, but the other you win. Later, when you feel you have some experience and everything goes well, you can only stay with one coin or two in pot.
After choosing the coins you want to buy, look at a historical chart of the coins. See where the previous mines and maxims were. Do not buy anyway, expect a correction, and when the market shows signs of resuming the upward trend you buy (as per point 2). Do not also buy if you see that the market has had big increases lately. Do not hurry, you better wait for a drop, than to get into a peak and then lose yourself. It is very important to buy coins. This is the main rule that can make you winners or losers on the Crypto market.
Bitcoin is the king here and it's good to always keep an eye on him. Generally when BTC increases, most crypto coyns grow, and when it drops the same thing happens with the other crypto coins.
Be informed. Find a news site and articles about crypto coins. Follow the news and articles related to the BTC and the other coins you have in your portfolio. If not every day, at least two days, it's good to find half an hour to read the news.
When do we sell? If you want short-term profits, it's a good idea to follow a common sense. When you notice that the market has grown for some time and there is an euphoric state it's time to sell and not regret if the price increases 10-20%. It is good to set a percentage of your winnings, for example 100% winnings. If you notice that the price begins to fall, sell even if the percentage you have not reached has been reached. 70-90% profit is better than nothing.
The last point, but one of the most important. The best strategy you can use as a beginner is buy and hold 1-5 years. That means looking for a good buying point (buy on a downward trend) and holding coins for several years in your own wallet. Be careful not to lose your wallet password. I do not recommend daily trading, because you will surely remain without money in your account. A reasonable strategy would be the swing you buy and sell in a few months when you see that you have a beautiful growth in your account.
These rules do not guarantee 100% success on this market, but if you apply them, they will save you many headaches and make you profit. There are a few other rules, but I will not load the memory with them, the ones posted above are the most important and I use them successfully.
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