In modern times, it is a difficult task to earn money as there is stiff competition in every sector or industry. If you want to make loads of money while sitting in your bed comfort, bitcoin trading is the perfect activity for you. There are many trading platforms, such as The Crypto Genius Bot, where you can buy and sell bitcoins and earn big profits.
Trade With a Clear Purpose
Bitcoin trading is risky as the price keeps on fluctuating. So, if you want to excel as a Bitcoin trader, you need to have a clear purpose in mind before you start a trade. There are different types of bitcoin trading, such as scalping, day trading, etc., and each one of them is suitable for a different set of goals and objectives. So, if you want to earn maximum profits, you need to be clear about your goals so that you can move on the right path. You must set your motive before entering into a trade as there is no scope for making a mistake while trading bitcoins.
The bitcoin market is full of expert and experienced traders, also termed as ‘whales.’ These traders wait patiently for an innocent trader like you to make a mistake and take that opportunity to earn some profits. So, if you want to stay safe from these ‘whales,’ you need not ensure that you don’t make any mistake, and that is possible only if you have a clear motive behind a trade.
Set Clear Profit Targets and Stop Losses
It is irrefutable that bitcoin trading offers massive profits, but at the same time, there are several risks involved too. Before enter trade, you must know when you need to get out, as only then will you be able avoid losses caused due to high price volatility. There are several trading tools that can help you to cut down your losses and maximize profits. Two of the essential tools that every trader needs to use are avoid losses. When you start a trade, you must set a clear stop loss along with a profit target.
Bitcoin price keeps on fluctuating as you never know if it will go up or down. So, avoid losses and you will cover the risks and will allow you to exit the trade at the right time. Stop loss is the minimum price at which you want to close the trade, so if you have set a stop loss, it will automatically sell your investment as soon as its price touches that point. The profit target is the minimum profit that you want to earn from the trade. So, using these tools, you can make better trading decisions and earn higher profits.
Handle FOMO Properly
If you are planning to start with bitcoin trading, you must be ready to face FOMO. It is a common reason behind the failure of novice bitcoin traders. The price of bitcoin keeps on fluctuating, but you need to understand that you cannot take advantage of every fluctuation and make some profits. When the price of bitcoin fluctuates, most novice traders try to make the most out of each fluctuation and think that if they don’t take quick action, they may miss an excellent opportunity to book some profits. It pushes them to make a decision in panic, and most of the time, it is wrong.
So, before you start bitcoin trading, you must learn to manage your FOMO. Ups and downs are parts of the bitcoin market, so you must keep your mind calm and make a decision on the basis of research and analysis, instead of running behind fluctuations and making decisions triggered by emotions such as the Fear of missing out.
Low Price Is Not Always Profitable
Most beginner crypto traders think that if they buy a cheap cryptocurrency, it will allow them to earn bigger profits. It is a huge mistake that you need to avoid, as the factor that affects the profit that you can earn from a cryptocurrency is its market cap, not the market price. So, while trading bitcoins or any other cryptocurrency, you must focus on the market cap.