Trading Cryptocurrencies: The Ultimate Crypto Checklist
The crypto market is known for its volatile nature nevertheless, it is buzzing with excitement. Here we breakdown a list of things traders should be mindful of when entering the crypto realm.
The crypto world is no longer that new niche area in the trading world. The current situation could not be more different now. Many big names like PayPal, Microsoft, Starbucks, Home Depot, and Whole Foods have all jumped on the Bitcoin train. This is coupled with the fact that Tesla has recently announced their staggering $1.5 billion purchase worth of Bitcoin.
The crypto world is buzzing with activity. More and more people seem to be interested to be part of the action. So, have you been recently been drawn to this exciting trading realm? You’ve come to the right place for some pointers to guide you along. In this article, we’re highlighting some of the most important things to keep in mind.
Profit Targets Are Cool
When it comes to trading, planning is essential. Developing a trading strategy is the first step to sound and responsible crypto trading. This will, in turn, provide you with a blueprint for all the actions that you choose to take. Profit targets should feature prominently in your strategy and are a great way to ensure self-discipline. It is all too easy to get carried away. Let adrenaline take over, and make an impulsive spur-of-the-moment trade with possibly undesirable results. Setting limits will help you to stay on track and err on the side of caution.
Make the Stop-Loss Your Friend
Knowing when it’s time to leave a party is just as important as arriving at the right moment and the same principle applies to your trading. It is physically impossible to continuously monitor the crypto market. It’s hard to always know when you can exit when things start looking less than rosy. The opposite is equally true. Luckily, you don’t have to worry about this. A stop-loss order is a pre-set instruction given to your broker that clearly states when to buy or sell a particular coin. Your stop-loss orders should be an intrinsic part of your overall strategy and so as to clearly define the critical points.
V is for Volatility
It’s important to keep in mind that the crypto market is a highly volatile one. This means that you could be making substantial gains one day and lose all your profits in a short timeframe. This is a principle that is almost etched in stone and something that all traders need to keep in mind. None of us have control of the crypto market and its patterns. However, keeping a close eye on trends and the news will help with risk management. It will guide your positions and ensure you take the necessary decisions efficiently.
Just like everything in life, balance is everything and this could not be truer than your trading decisions. As we have highlighted in the point above, the crypto market is a very volatile market. Therefore, a diversified and balanced digital coin portfolio will ensure that you are never overly exposed. Also, your risk element is Granted, your gains might happen at a slower pace, but in the end, slow and steady wins the race. Daily habits are a key to success, including an unwavering dedication to watch the markets. With TradeOr’s Watchlist feature traders can watch their favorite assets and successfully plan their next move based on important price moves.
Don’t Yield to the #FOMO
FOMO (Fear of Missing Out) is an all-too-common scenario that many crypto traders experience. Like we have said above, the cryptocurrency market is characterized by a high level of volatility and this can at times create a roller coaster of emotions which at times leads to decisions being made on impulse rather than a sound and logical strategy. For instance, a sudden increase in the value of a particular coin could make you feel like you are losing out while traders who own it are reaping the benefits. The opposite can also be likely. In these situations, it is very important to keep a cool head, take a step back and look at the bigger picture. Let us rephrase that; take a good look at the coin’s chart and its statistics, see where it fits within your trading strategy, then proceed from there and not emotion.
Just like choosing a reputable bank for your mortgage or an established insurance provider for your car insurance is the responsible thing to do, choosing a good broker for your crypto trades is equally important. This will ensure that you are trading within the optimal framework with the best conditions. For instance, choosing a trading platform like TradeOr ensures that your funds are held in your name and are therefore safe. It is also beneficial that you can trade with 0% commission, the possibility to trade all your favorite assets in one place, the latest market overviews and news, swift withdrawals, and dedicated 24/7 support.
Never Stop Learning
We like to think of learning as cardio for the brain. While your daily treadmill sessions may not be fun, learning about crypto can most certainly be something engaging. The quest for continuous knowledge should be at the top of every trader’s to-do list and it is not something that stops once a certain level of experience is reached. On the contrary, knowledge can and should fuel your growth.
Your adventures in the crypto world can be satisfying and exciting but they can also present unique challenges. Equipping yourself with the necessary tools such as ChartIQ is the best way to help you to achieve your goals and become a pro in no time. Ready to learn? Sign up now and let’s get started.