Throughout the years, the Cryptocurrency market has been known to be highly volatile, which means that the values of digital coins changes in the blink of an eye. This also means putting your investments at risk since you will never know how the value changes can affect your funds. To take advantage of the fluctuating nature of the market, it’s wise to have proper planning and equip yourself with the appropriate knowledge for excellent decision making.
Due to the values of digital coins constantly changing, earning profits on some days does not guarantee to earn the same or larger amount for the next days. This is because as the values in the market change, so does your investments that are in the market. While there are crypto enthusiasts who played their cards right and made it to the list of Cryptocurrency Billionaires, it’s no guarantee that everyone who invests time and money in the field will have the same path.
The truth is trading in Cryptocurrency is merely more than just putting a certain amount of money and magically waiting for it to double or triple. Crypto trading is not about getting fortunate or lucky – it’s about knowing how to correctly and effectively use your skills and knowledge. Keep in mind that in this field, it’s normal to experience some losses and gains on different days. While there are people who earned profits, the majority of the investors – most especially beginner traders – experience loss of funds.
With the various sources of information online, it’s easy to avoid losing your funds before your career even starts! To give you some ideas, check out these essential trading techniques that you should know.
1. Choose the best crypto platform
The first thing that you need to do before you can start trading and investing in the market is by choosing a Cryptocurrency platform. With the hundreds of exchanges in the market, the best one offers benefits that align with your goals and needs. This step is extremely important as the platform’s features, advantages, and disadvantages can affect your career in the long run.
Don’t get confused or fooled; choosing a crypto platform is easy if you know what things to look for! To ensure a safe and reliable exchange, here are the main features that you must look for:
Due to the several cases of hacking and theft in the crypto market, it’s perfectly natural to choose an exchange that offers the highest level of security. Fortunately, there are trading platforms like the Bitcoin Era that provide a high level of security to ensure the assets of their investors are safe from the hands of hackers.
3. 24/7 Customer Service
Every store-bought machine always comes with manual and customer service support. Just like in Cryptocurrency, there are times when you’ll need help or assistance from their customer support on how to use this certain feature or for different reasons that you probably want to know. Pursuing a trading platform that offers 24/7 customer services is vital as it can help you with your needs without worrying about time.
4. Transaction Speed
Another factor that a Cryptocurrency exchange must have is fast transaction speed. Let’s face it – no one wants to wait for days just for a transaction that includes buying, selling, trading, or payouts to be completed. Investing in a crypto platform that offers fast transaction speed is also beneficial as it helps improve your skills and efficiency.
5. User-Friendly Interface
Excellent features of a Cryptocurrency platform might be helpful, but not knowing how to navigate or use these features technically cancels it. On the other hand, an exchange that is extremely easy to use will be more preferred by many, especially by newbies investors. A mobile application with a user-friendly interface helps investors easily identify and discover its features and quickly learn how to use them however they want.
6. Invest correctly
In life, mistakes are a natural part of human life – it is unavoidable and serves as a learning experience for some people. However, in the Cryptocurrency field, making mistakes is crucial as it might mean bidding goodbye to your hard-earned funds. For beginner investors who are just starting to get a glimpse of trading, this could end their career way before it started. Fortunately, there are effective ways to minimise the effects of this risk.
To prevent experiencing unexpected loss or a major financial setback, make sure not to invest more than what you cannot afford to lose. Don’t enter the crypto world and invest everything that you have in the hopes of gaining more. Before you enter this field, have a proper understanding of the risks and possibilities of every action that you plan to make, as every move that you make could lead to either a positive result or puts your career at risk.
7. Bring volatility to your advantage
It is widely known that the crypto market has a fluctuating nature, which is a normal and unavoidable element of the field. If you’ve done your research, you probably read about Cryptocurrency price history that changed throughout the years. This change is not bound to end, so no matter when you start to invest, you are likely to experience this volatility.
To make the most out of your investment, it’s wise to do some research and study how to take advantage of its fluctuating nature and use it to your advantage. There are things that you can do to prepare, such as studying the price changes pattern in recent years, diversifying your investments instead of investing them solely in one crypto, and trying the HODL strategy, which refers to buying cryptocurrencies and holding them for a long period then selling them before the price dips again.
Throughout the years, Cryptocurrency has established a name in the world and has gained over millions of citizens and firms worldwide. Indeed, this field is not as easy as it seems, but with the proper tools, knowledge, skills and determination, you might just be one of the people who witnessed that Cryptocurrency is indeed profitable. If you possess the right skills on how to read price histories and price charts and have the determination to do extensive research about the risks and consequences of crypto trading, you will surely have a successful crypto career.