It is not enough just to open a brokerage account to make a permanent profit. On the contrary, there is a lot to learn to increase the likelihood that your efforts will be successful.
With that in mind, here are five useful cryptocurrency trading tips below.
Use only regulated brokers that allow you to trade without commission
There are hundreds of brokers and exchanges that allow you to trade cryptocurrencies. It is important, of course, to take into account other factors, but the activities of your broker should be regulated. Then your funds will be protected in any situation.
In addition, it is also essential to minimize your trading commission costs. It is better to focus on platforms that allow you to trade crypto on a commission-free basis.
Take a cryptocurrency trading course
Before you take a responsible step, refresh your knowledge, not only in the field of digital currencies but also in understanding the principles of trade. Learn how to effectively use stock orders and trading strategies, for example.
Learn how to conduct research and apply risk management tools to minimize potential losses. There are quite a few cryptocurrency trading training courses that you can take from the comfort of your home. Some can be played at your own pace, which is very convenient.
Learn to read charts
One of the main benefits of using a buy-and-hold strategy is that you don’t have to worry about short-term price trends. After all, you simply buy the chosen cryptocurrency and store it for several months or years.
However, if you are interested in trading cryptocurrencies in their true form, then you will only follow short-term changes.
Most cryptocurrency traders hold positions open for no more than one day. Even swing traders average less than a week. Given this, it is extremely important to learn how to read and analyze charts. This way, you can spot emerging trends.
Practice cryptocurrency trading
Most cryptocurrency trading platforms allow you to trade with virtual money from a demo account. You will trade in real trading conditions in terms of price movement, trading volume, and trends, but with the difference that it will be trading in a safe environment.
This means that you will be able to get comfortable with stock orders and trading strategies without risking your capital. We advise you not to start trading with real money until you learn how to trade consistently with a profit.
Consider copy trading
Many investors are not familiar with the phenomenon of copy trading. For beginners, let’s explain that this feature allows you to select an expert trader with a long (and proven) history of outperforming the market.
When looking for such a trader, you can use various criteria – monthly profitability, risk level, preferred cryptocurrency pairs, as well as the average duration of the transaction. When you find a trader, you can copy their portfolio.