The most important fact of trading is that one can never perfectly time the buys and sell. The chances of purchasing at the exact bottom and selling at the exact top is lesser than usual. There aren’t any specific set of rules that are supposed to be followed, no such path to take.
Every person has different perspective regarding sales, trading and investing, and crypto currency trading is similar in this regard. However, trading isn’t for everyone, losing your expensive Bitcoins by making mistakes is definitely not a fun situation to be in.
While trading Bitcoins all that is supposed to be done is living in the present and learn from the past mistakes, as past is over.
Following are the tips that are easy to understand but a bit difficult to apply, after all we aren’t rational human beings.
- First of have a clear strategy and a reason before entering a trade. Profits cannot be made by every trader, since it is a zero-sum game (each time someone gains benefits, someone else loses). The business driven by huge whales that are patiently waiting for innocent fishes like us to make one wrong move. So remember, if you want to trade on a daily basis, there will be time when you won’t earn anything.
- There must be a clear target for the trade and profit level and the stop-loss level for cutting the losses. Stop-loss level is a lowest price the trade will be closed. Most traders let their ego take control of their self and fall in love with the trade or the coin. They are a lot more riskier, it has been seen that a coin is dumped by 80% in a few hours. And no one wants to be the one holding it.
- Invest no more than a small percentage in the non-liquid market because it helps in managing the risk wisely. Since we are talking about risk management, traders look for small profits rather than big ones as small ones accommodate into a big one. As it said in the risk management, “small pigs eat a lot, big pigs get eaten”.
- Bitcoin and Altcoin have inverse relationship in their value i.e. when Bitcoin value rises then Altcoin are losing their Bitcoin value and vice versa. Bitcoins are volatile assets and their value is moving sharply but their trading is a bit foggy. And during fog it isn’t possible to look ahead, so it better to have close targets or no targets at all.
- A word about open ICOs (swarm deals): Many new ventures make a group deal where they offer financial specialists an early chance to purchase an offer of the task (tokens or coins) in what is intended to be a decent cost for the tokens.
- The inspiration for the financial specialists is that the token will be exchanged from the very first moment on the trades and would return a decent benefit to the ICO members. As of late, there have been numerous effective ICOs, both the task itself and particularly in estimating the yield for financial specialists. Coins multiplied, or tripled, their esteem and substantially more in connection to their incentive on the group deal. Forecast’s preparatory group deal (we gave an account of it already here) yielded financial specialists a sensational 1,000% for their speculation. Affirm, yet what’s the catch here? Not every one of the ventures advantage their financial specialists. Numerous ICOs ended up being finished tricks, not exclusively were they not being exchanged at everything except rather a few ventures vanished with the cash and we have not gotten notification from them up right up ’til the present time.