Are you new to cryptocurrency trading? You may greatly benefit from handy tips and guidelines for the new Bitcoin investors and traders, because trading crypto coins is not as easy as it sounds. Crypto trading is vastly different from regular trading of shares and stocks in traditional financial markets. Taking the first steps into cryptocurrency investments is risky, no matter how well researched or prepared you may be. There are too many horror stories on crypto trading and these can unnerve you even before you have started. Here are the top insights about crypto trading for new Bitcoin traders and investors:
To begin with, there is no substitute for background research on Bitcoins and cryptocurrencies in general when you are planning to start out. You will definitely make better trade-related decisions once you are better informed. While crypto investments may be lucrative, they are just as risky as any other investment, perhaps even riskier, given the volatile nature of cryptocurrencies. It is not enough to browse through a few articles online on Bitcoin trading; it is advisable to find a mentor who can guide you well. Your guide must be trustworthy and credible so that you do not end up making incorrect decisions.
You must never make a huge investment at the start; rather, a new Bitcoin trader needs to take baby steps to understand how the market works. Risks are inherent in any investment and Bitcoins are no exception. So, it is advisable to advance gradually because chances of profits are as high as losses. When you have decided on the entry point, you need to stick to it and not change your mind simply because someone advised you to.
Widen your horizons
For a new trader, it is important not to put all his hard-earned money into one crypto asset. Diversifying one’s portfolio is the right way to spread out your risks. Any losses that you incur in one asset can then be balanced with gains made in another. Using automated bitcoin trading bots will ease the efforts put into manual trading and they are easy to handle as well for beginners. Go through this bitcoin pro review to learn more about how the bitcoin trading bots execute the trade
Storing coins in wallets
A new Bitcoin trader must have wallets to store his coins; leaving Bitcoins on exchanges is a mistake as hackers target exchanges frequently. The well-known Mt.Gox incident led to massive losses for users of the cryptocurrency exchange. It is advisable to invest in the offline or cold wallets as these are found to be more secure compared to online ones.
Be prepared for a wild ride
You must understand that the journey of investing in the crypto space is not without its spikes and falls. The crypto market is highly volatile and you should try to buy Bitcoins and hold onto these for the long-term. It is important to resist the urge to short-sell your Bitcoins.
Set clear targets
When you open a trade, it is important to set a profit target. Setting clear profit or loss targets is necessary because the Bitcoin is not like your other financial investments; it is so volatile that you may be tempted to hold onto a bad position. If you can set an exit point and implement a stop-loss order, you can save your money and exit when the trade is going against you.