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8 Critical Cryptocurrency Trading Tips All People Must Read

Cryptocurrency trading tips by Kishore MThe crypto-currency Market is a global, decentralized market. Being a speculative market, the game plan here is all about “higher the stakes, better the prospect of making profits”. The flip side of this is “Higher the stakes the more the chances of making huge losses as well”. Hence here are 8 critical trading tips, from the seasoned traders and experts of this domain, to help new traders do well in the market.

1) Question your own comfort with the market:

Trading is not for everyone. More than the skill issues here, it is about the will. Cryptocurrency market is volatile to the extreme. If a currency is doing absolutely wonderful 10 mins ago, it can come crashing down 10 mins later too. Though this in itself is a hugely unpredictable situation, what makes it harder for the traders is, the losses they bear, if they do not exit the market in time. Exiting the market means understanding the tell-tale signs which start before a trend drops. This can be possible only with constant market monitoring. If a Cryptocurrency trader is working full time and does not have enough screen time to spare or if a trader cannot diligently keep abreast with the market updates to time their entry and exit on time, they should not enter the market. Kishore M, Cryptocurrency expert says, “Unlike other trading, the cryptocurrency market can make you a lot of money, given you have the time to dedicatedly trade “.

This pointer about questioning your comfort with trading is valid for every market that a trader might be trading in. Akin to the cryptocurrency, the Forex market has many tools that the traders may use, as they see it fit to be used. One of them is the Powerup Capital, a legit FX trading system, which helps them time their entry and exits on time.

2) Manage trading risks:

Trading or rather one trade should not be the sole investment for any traders. It is never wise to put all the money into one trade. The risk of losing is a part and parcel of the trading world. It is never recommended to risk all in one. Diversify the trades into various currencies or trade in other markets too like FX to ensure that a loss in one trade has made up the profits of another trade. In the cryptocurrency, coins can lose up to 35% of their value.

3) Do not overlook the power of a stop loss order:

Target setting and setting up of stop-loss orders should go hand in hand. Target setting refers to the level till which a trader will trade. Beyond that level, he will have clearly defined that he will not trade anymore. This is critical. However what is more important is that a trader defines the level till which he can bear loses conformably. A stop loss order is an instruction that a trader must apply to avoid making more loses than he can bear. Kishore M says,” While you are trading, you know where you want to be. However in the process when you are incurring losses, beyond a certain point your defined stop-loss target will close the trade position and you take only that much loss which you can bear”. Kishore M is also a Forex expert and deals with topics like Forex trading systems.

4) Keep a lease on emotions:

In trading, emotions are the vices to be avoided like the plague. Trading recognizes four emotions that traders go through while trading: Fear, Greed, Hope and Regret. These might seem mundane but in the cryptocurrency trading world, just like in the other trading domains, these physiological deterrents create havoc. For instance, when a country decides to ban cryptocurrencies, investors panic. They start selling all of their cryptocurrency, flooding the market.  This fear ripples into a panic in the market. In another instance, when a trader is losing a lot of money on a particular cryptocurrency, he might start trading harder to average out. On the contrary, there have been situations when traders have lost hope after losses and in their regret have ended their lives. Hence keep your emotions in check.

5) Be aware of new Cryptocurrencies:

Cryptocurrencies are based on blockchain for verification. These are digital currencies that use complex encryption methods to develop them. A few years earlier this might have seemed possible. However today there are cryptocurrencies in place and new ones are emerging with promised bright prospective. That is precisely the reason why a trader needs to be extra cautious. Being a decentralized market with no governing body, there is no one to safeguard either the profits or the losses incurred in the market by the traders. A scam also goes unmonitored since there is no one to reach out for help.

6) Limit your risk exposure:

Experts often advise that investments in cryptocurrencies should never be over the top. It should be in between the range of 10 to 20% of one’s salary. This is not a very big amount to trade in. This percentage of investment limits the exposure to risk while it makes for cautious trading.

7) Think Long-term:

Cryptocurrency market is inflicted with short-term price fluctuation. Hence, making short-term gains should not be the goal. Cryptocurrency trading is a long-term haul. In this market, demand and supply are more important than the price of the currencies themselves. The reason being each cryptocurrency is produced in a limit number. With most of them bought already the market has a limited supply of the same. However, an unprecedented sell of a particular cryptocurrency will flood the market bringing the price crashing down. On the other hand a long-term plan takes into account the lower supply of cryptocurrencies and an overall market price rise.

8) Remain accountable:

Trading is a serious business of money making through trading. If a trader made profits while trading, it is of utmost importance that he is not to be reckless with spending it. Also, make sure that celebrating a good time in the market, the profits are in the account. Now a days hacking into accounts is an easy job done.

Conclusion:

Crypto currencies are digital currencies and therefore are prone to a lot of threats from the virtual and digital world. Safeguarding these currencies and trading with skill and caution are the bottom line for any tips that the experts would give to a trader. Trade well but with caution.

The post 8 Critical Cryptocurrency Trading Tips All People Must Read appeared first on Crypto Currency Coin Market.



This post first appeared on Kishore M Cryptocurrency Trading Strategies And Tips, please read the originial post: here

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8 Critical Cryptocurrency Trading Tips All People Must Read

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