Ever since cryptocurrency has emerged, it has caused great excitement. The new currency doesn’t have to deal with banks and credit cards or even a physical form – doesn’t it sound fascinating?
It is the next big thing in finance, and there is no doubt that we will use cryptocurrency in the future. But just like every other invention or novelty, the success of its use will depend on our attitude to it. If we use it right with the correct motives, we will win. If we get to know enough about blockchain technology before we invest, we will win.
So, this read is for everyone thinking ‘Invest or not invest?’ and making a difficult choice. Read on to get some tips on trading and pre-trading.
Is Cryptocurrency a Friend or Enemy? Defining If It Is Worthy to Invest
Now, when digital coins have been popularized so much, we all have heard the stories of sudden success as well as dramatic failures. For every investor who makes money on trades, some lose, which applies to trading regardless of what way of trading you choose.
There are both benefits and minuses of trading. But the outcome entirely depends on the person you are and the goals you have. Are you a keen risk-taker or an armchair expert? Are you willing to learn and continuously educate yourself about everything related to cryptocurrency?
If you answered these questions positively, you are likely to be the ‘risking type.’ If not, then digital money and speculating on it will probably be your enemy because you can’t be standing in the same place or sticking to something you believe instead of learning and making progress in the sphere of crypto.
So, if you’re a risk-taker, the following tips are for you.
Tip 1. Choose only proven services.
Now, we know that sometimes there is a temptation to jump to trading right away without even seeing the service’s conditions and details of work. Still, we advise that you be extra attentive when picking a place to rade digital currency and go for official sites only. What is more, always check if this place owns the thing called ‘white papers’ because you can be deceived there if it doesn’t own them. This document is essential for reading to anyone desiring to trade legally and securely.
Places like Coinbase, Bittrex, Gemini, and the younger Bitcoin Digital are great examples of client-oriented and transparent platforms for trading. Many of them offer additional instruments helping you make crypto transactions and count the chances for profit.
Tip 2. Set profit goals and stop loss.
Profit goals, or profit targets, are priceless when you need to decide whether to continue and wait for the price to rise or get out of trading and be content with what you already earned. Such goals make you a steady trader and prevent you from going after your emotions. In the same way, stop loss will let you put a particular limit on the amount of potential losses. It defines how much loss you can handle in case the trade fails.
Tip 3. Educate yourself.
As we mentioned in this article above, learning is a must for every trader. As a beginner, you might have thousands of questions in your head, and it is okay. To answer them, choose comprehensive courses such as those available at Udemy. There, you can discover different trading strategies and learn how to use them wisely. Other recommended sources include Forbes, Times, and financial magazines with a high trust rating.
Tip 4. Make small steps.
The golden rule of trading is to invest such a sum of money that you would not regret losing. Yes, this sounds like a lottery. But life is a lottery sometimes. When making your first investment, try to begin with a comfortable sum. Why? First of all, it is better to take more negligible risks at small sums because you are still learning.
Making comfortable investments will teach you how to handle a failed trade, manage financial loss, or manage your budget, whatever its size is.
Sure thing, this list of tips doesn’t give you the complete picture of what trading at the starting phase looks like. But it will surely help you invest more cautiously, even if this is unpopular in today’s investment philosophy.
Anyway, it is better to follow an unpopular idea and come out a success than to surrender to the fear of missing out and have a flop. Take these tips seriously, watch out for scam services, and enjoy trading whatever risks it has!