Things to consider as a cryptocurrency Trader

Cryptocurrencies are a relatively new subject. It is truly the wild-west of investing world. The cryptocurrency market can be volatile at times. And therefore, when it comes to investing and trading, one should always have a calculated approach. The risks are tens and hundred times more than any non-crypto investments as cryptocurrencies at large operate in a non regulated market. So just in case something goes wrong, you have no protection whatsoever.

In this short handy guide we will cover all that you need as a beginner. Let’s get started.

1. Crypto Unicorns?

Stop right there. Unicorns doesn’t exist. Every project claims to be the one, but very few makes it to the light. Social media is abuzz with celebrities and influencer’s projecting one after they other but know that they do not serve your purpose. Do not believe everything social media says. These projects are often just marketing gimmicks with no background work whatsoever. Interestingly, most beginner trader falls for them as they are often pumped-up community driven trading. Therefore, always do your own research (DYOR). Read our top 5 Crypto list for 2022.

2. Choose a reliable Crypto Exchange

It is really important to start with a reputed exchange. As security and trust are very essential factors in the crypto space. If you are to handover your hard earn money to someone you need to make sure they are reliable. Time has proven that crypto exchanges had a very rough time over the past decade.

Additionally, reputed exchanges brings with them very good liquidity and therefore you won’t be stuck in trades for long. One of the famous crypto exchange is Binance and we highly recommend users to get started with them. Binance charges the lowest fee’s in the industry i.e; 0.075%. They also supports Futures, Margins and many more.

3. Have a plan

Don’t aimlessly start your journey without knowing where you are going. Before you place a trade, always prepare a plan. That’s the foundation of a solid strategy. Know what you want and how you want. Once you have stated your trading objective and your plant is ready, stick to it. You may re-visit your plan from time to time with the changing market conditions.

4. Keep greed aside

This is the most important and probably the hardest one to control. Many traders fall prey to greed. Greed often leads to impulsive decisions and makes you ignore your trading plan. During your trading journey you will see your trades either underwater or profitable at times, it’s exactly when your greed instinct will takeover to either increase profits or decrease losses, making you totally forget your trading plan. Which is why we say trust your trading plan, stick to it and keep emotions aside.

5. FOMO (Fear of missing out)

Do not fall prey to this one. They are often traps. We all love to see crypto skyrocketing and they do so often but make no mistake the trash has to fall back. As these rockets end up well before entering Space. You will probably end up in the middle of nowhere. Going forward, you will have plenty of opportunities so do not join the flock, lead the flock.

6. DYOR (Do your own research)

Did someone just told you about how good a crypto is and you jumped the guns? Remember, always do your own research although you may trust the person very well. But there are always pieces of information that your informer might have missed which can prove lethal at times. Find answers to questions like, who’s behind project? How long since the project is running? GitHub activity? Future? etc.

7. Portfolio Diversification

There is a famous saying that goes by, “don’t put all your eggs in one basket”. Diversification is the key when it comes to portfolio management. If one of your investment goes down, the others can minimize your losses. This way you have simply more opportunities to make good profits.

8. Take small profits

Something is better than nothing. Take small profits and move on with your next strategy. Cryptocurrency market is savage when it comes to volatility. Given all the uncertainty, reliability of project and nature of the crypto market you can never be too sure. Especially, when the market is still in it’s infancy period.

By following this guide, you will never be lost. Although there’s more to recommend but with time, you will ultimately develop them. Do let us know what you think should be considered as well.

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Original link: Your go to Crypto place