In this article, we will be telling you about the cryptocurrency trading tricks you need to know if you want to jump in trading cryptocurrency. If you want to do profitable trading, then you must be very much attentive. It is not like gambling. You should be well aware of the supply and demand market forces to know when to apply what trick.
The potential for financial gains provided by the crypto market is limitless. Cryptocurrency trading is not similar to stock market trading. The stock market does not give you 50x return in just 6 months. Investors are trying to take advantage of the crypto market for making 7 figure returns.
The platform for cryptocurrency trading is new. One must be familiar with the trends of the market. Nuances should be understood for creating billion-dollar opportunities through cryptocurrency.
To help you get a better understanding of the market, we will tell you about some cryptocurrency trading tricks that can help you in getting maximum returns. These tricks can be considered as safety rules.
The first and most important thing is to have a motive when you enter any trade. A purpose is necessary if you want to trade cryptocurrencies. This is a zero-sum game. Winning and losing coexist. If someone wins then someone loses too.
This market is controlled by large “whales” they are just like those who place thousands of bitcoins in the order book of the market. They are patient and are looking for someone innocent to make a mistake. Our mistakes will land our money to their hands if we do any avoidable mistakes.
2) Set profit targets:
We must know when to get out whenever we trade. We should also know whether we are making a profit or a loss. It can help in cutting losses if you have a clear understanding of the stop loss level.
It is not an easy activity. But to avoid loss, let us assume that you bought a coin at $1,000, you can set this amount as a minimum point so that you can walk away with your initial investment.
And for-profits, you must not be greedy. Stick to certain minimum profits.
3) Managing the risks:
Wise and sensible traders never run for bigger profits. They just sit back and collect small but sure profits from some regular trading. You should invest less portfolio in a less liquid market. These trades require tolerance.
4) Ladder into the market:
If we talk about investing, then timing is everything. Just like the stock market, it is also considered critical to enter the cryptocurrency market at the right time for maximizing the returns. In 2018, investors suffered losses because Bitcoin prices declined. The reason was that they did not pay much attention to the cautions. Bitcoin nearly suffered a death cross in which a moving average of 50 days crosses the moving average of 200 days in reverse.
The best time for investment is during the golden cross when the moving average of 50 days crosses the moving average of 200 days upside. You cannot predict a golden cross so you must make your way slowly into the market.
5) Utilizing Staking Rewards:
If you want to maximize your returns, then it is better to invest in the coins which offer rewards for staking. Investors are offered with bonuses by many startups for just holding the coins. You are rewarded for just holding coins after investing. These bonuses can be added to new investments for getting more rewards.
6) Holding coins in native wallets:
Assets should always be protected. If you want to secure and save your coins then you should store them in the wallet of the native coin. Crypto exchanges provide the ease of making investments, depositing funds, and selling coins. But they can be hacked or frozen. It means there are chances that you may lose all of your funds.
Native wallets are better security-wise. They are controlled by the account holder and are decentralized. Only you have access to your account. It helps in keeping your investments safe.
These were some cryptocurrency trading tricks that can be helpful if you want to trade cryptocurrencies.