Nowadays, it is hard to escape from bitcoin news on the Web. More and more people are becoming mad about cryptocurrency trading, according to the bitcoin price.
It is precisely a very interesting activity, which excites and fuels distrust at the same time.
Imagine that you decided to buy some crypto on Binance, and according to the rapid increase of bitcoin or an ethereum price, you earned some money. But what to do later? How to become a good crypto investor? One lucky one-time deal with a little profit cannot provide a stable income for a long time. It is not enough to be able to guess or expect the changing of a bitcoin price, so you should follow particular instructions and learn to be disciplined. Also, to be armed with a proven source of reliable crypto signals will boost your profit and save your time.
You can become successful only if you have a lot of experience under your belt if you suffered from failures and learned from your own mistakes. But despite the bumpy ride, which you should pass or already passed, we prepared a list of solutions to simplify that challenging activity. Check out the info below to be aware and develop together because there is always room for improvement.
How to become the best at cryptocurrency trading?
- Provide a place for keeping your coins.
Traders can’t stop worrying about their being even if they are very successful. With great power, there must also come great responsibility. The same goes for digital money, which you need to keep safe to prevent attacks from hackers.
Cryptocurrency trading is a serious activity, which requires a high level of responsibility in keeping your funds under the protection and managing them properly. Why decide where to keep your crypto coins, prefer cold wallets, which are harder to hack. They have no internet connection, and they represent a simple USB flash drive.
- Plan an entry and exit strategy.
Let’s get down to the most important point of a successful crypto investing tutorial. As you can get, a crypto trader’s job means analysing a bitcoin price changing and selecting the most appropriate time to enter and exit. Selecting an entry means choosing the right time to buy a cryptocurrency, and exit means selling it and closing the deal. Follow two rules — take a profit and stop losing.
- Don’t risk more than you expect to lose.
Don’t dive straight into the deep end, don’t risk more than 2% of your deposit. It is allowed to lose no more than 2 percent of your account’s total equity on any one trade.
A bit of advice — by increasing the amount of money in your deposit, you will increase the money you expected to win and reduce the money you expected to lose. To get a master in cryptocurrency trading and provide a stable income for a long time, you should deal with the large amounts of money on your deposit, which requires a unique approach to the question relating to security.
- Pay special attention to security tips.
While you become a family member of cryptocurrency trading, you need to give up the habits, which may cause danger to your crypto investing activity. Remember that your life won’t be the same anymore. To protect your e-money and your private info like passwords and any data related to crypto exchange platforms, you should be careful with your devices connected with your wallets and crypto accounts. What does it mean? Avoid public Wi-Fi to prevent yourself from being scammed. It is also not recommended downloading any files sent by strangers, which can steal files even from your cold wallet. And finally, you should recognise the importance of using only strong passwords.
- Be armed with the proven crypto signals.
Act with the help of proven sources of information. Crypto trading signals are trading ideas or trade suggestions to buy or sell a particular coin at a specific price and time. These crypto trade signals are generated manually by a professional trader or by trading algorithms and bots that automatically send the trade signals. It is an excellent opportunity for newbies to earn some easy money. But we advise you to prefer authoritative crypto signals, which are usually paid. Well, what do you expect? Free advice is seldom cheap.
The most popular mistakes when investing in crypto
- Believing the mainstream.
Probably you decided to learn cryptocurrency trading activity because of the hype around Bitcoin. There is nothing wrong with that, but remember to put emotions aside and don’t let them get a hold of you.
- Using the wrong exchange services.
When choosing an exchange service, consider selecting that one, which requires a low-fee secure exchange to make your crypto investing more profitable.
- Being not updated.
As you know, cryptocurrency trading requires not only investing money, and it takes a lot of time analysing the market and the price of cryptocurrencies. But it is not enough. You should always be aware and updated about bitcoin or other cryptocurrencies news to realise what you should expect soon. In the crypto world, the expression “knowledge is power” has never been more authentic. We find ourselves in a historical time when Bitcoin smashes through the $53,000 barrier to a record high, boosting its price gain this year to 81%.
Don’t waste your money earned from cryptocurrency trading. Don’t let the sudden increase of money change you, control your feelings and keep your money safe. Learn to be disciplined, and manage your costs, which is especially important when trading. Remember that the better way to spend your money earned from cryptocurrency trading is to reinvest them, double, and even triple your profit.