Any fool can learn from his mistakes, only a wise man learns from the mistakes of others. These are the paraphrased words of Otto Von Bismarсk, and it is particularly apt when it comes to trading cryptocurrency for profit. The problem of how to trade cryptocurrency to be profitable did not just evolve. It has been a plague for years since the inception of Bitcoin.
Since the Bitcoin bubble in 2016, cryptocurrency has been the hottest trend on the Internet and even though it can be a volatile asset, many people still fail drastically because of lack of knowledge of cryptocurrency trading tips.
You have to learn how to make money with Bitcoin and other altcoins and avoid cryptocurrency trading mistakes. Without wasting much of your time, here are trading tips to follow.
Don’t buy coins based on unfounded tips
This is one of the most common crypto trading mistakes people make. Even outside cryptocurrency, sometimes people hear news about a company’s stock or on a particular job market and they allow what they hear get to them.
How can you avoid this crypto trading mistake?
By refusing to believe what self-acclaimed experts reveal
By saying no to relatives and cronies who insist that you’re wasting your time.
Turn off the TV and refuse any other propaganda being peddled by the media.
Does this mean that you should totally ignore any piece of information you receive? No. You might even be doing yourself more harm that way. However, you can always try to research more on anyone which catches your fancy. For example, you should know to discern what a salesperson says and what the founder of a tech startup says.
Research well before buying cheap stocks
Sometimes, you might feel that cheap stocks are not lucrative enough to be classified as scams. Imagine what will happen if 10,000 people send 0.1 BTC each to just one person? Crazy right? Even though it might not be an outright scam, several cryptocurrencies will never improve in value. In essence, you should have a critical eye for these cryptocurrency trading mistakes so as not to fall into the same traps.
Don’t rush into diversifying
Many cryptocurrency experts nowadays are pained that there was no way to know these crypto trading tips when they should have known. If you want to know how to make money with Bitcoin, you shouldn’t bother yourself with altcoin trading tips, at least not yet. Try to focus at the start and keep a very centralized portfolio.
Run away from pump and dumps
You might become puzzled and start to question when crypto trading tips began to involve athleticism and races. You must have heard about the pump and dump activities which involve purchasing less-popular coins with very low volumes and then dumping it just to cause loss as people begin to notice the coins’ success.
This puts you in a quandary. How can you identify P&Ds and differentiate them from normal cryptocurrencies which are just enjoying an upward spiral on their own? Tough luck. However, the safest crypto trading tip is to carry out research and then follow your gut.
Double-check coins before sending to an address
Many times people out of impatience or genuine misfortune will send coins to the wrong wallet address when trading crypto. There are even many ways in which this can occur.
You send Bitcoin to a Bitcoin Cash wallet. Perhaps Ethereum to an Ethereum Classic wallet.
You send the correct funds to a different person’s wallet.
You send the wrong amount of funds to the right person’s wallet.
Either way, this might seem like one of those very obvious crypto trading tips but you should try to adhere to it. The loss you might incur might be catastrophic.
If you have followed some of the Bitcoin trading tips or altcoin trading tips above, congratulations. Now that you have made significant gains this is even better. How can you leverage on this and keep the momentum? You begin to trade excessively. Bad move! For example, if you try to sell your coins immediately quickly you see improvement of like 20 percent, you can be tempted to sell and reinvest. The problem with this business model is that you are prone to misjudgment based on the volatility of the market.
Do not trade emotionally
They didn’t lie when they asked you not to mix business with pleasure or emotions. This is one of the pillars of altcoin trading tips and you can find yourself in a terrible place if you choose to ignore this. It is very normal that one relatively unknown tip will just spike and losing out on this will cause you to aggressively invest in others. You might just end up losing all your assets this way.
Take time off trading
This appears counterintuitive, right? In conventional business, you are expected to put in more hours and then you’ll be promoted and your salary package will increase. Unfortunately, crypto trading tips are not conventional. How to trade cryptocurrency does not involve ways which are made known to everybody. Sometimes, you need to take time off the market, track your losses, celebrate your wins and come back stronger and wiser.
Start off with the right exchange
We have more and more altcoins in the market. And people no longer looking for how to make money with Bitcoin alone, they want other altcoin trading tips. Here’s one- begin your crypto trading career only with one of the several established digital currencies. When you do this, you are sure that the safety of your profits is guaranteed.
Don’t compound your losses
Here’s normal human intellect, you invest in a business and it begins to fail. Rather than getting away from the business as soon as possible, you stick with it and try to ensure that you get away with a least some money. Consider the time and effort you already invested apart from the money you would’ve lost by the end of the day. Don’t let pride get to you; it can instantly decimate your hard-earned savings in no time.
On a final note, it is not so easy to accomplish, although it is entirely worth it. Follow these cryptocurrency trading tips with all seriousness and you’re on your way to self-sufficiency as a result of cryptocurrency.