Investing in cryptocurrencies has taken the world by storm in the last few years. It can be difficult to predict which coins will do well and which ones will fail, but there are ways to increase your investment and make more money with cryptocurrency trading. These 10 ways to trade cryptocurrencies are designed to help you grow your wealth while still allowing you to have fun with your trading strategies and investments.
1) Making consistently good decisions
If you want your business to grow, you’ll need a strong decision-making process in place. Don’t be afraid of making tough calls, but do involve others when possible. For example, solicit feedback from employees on difficult decisions. And create an opportunity for them to weigh in on major issues that affect everyone: company culture, benefits and perks, performance reviews, salaries—you name it.
2) Constantly seeking out new sources of information
It’s important to stay informed on a daily basis. Some say that you need 10 hours of sleep a night; I believe it’s 10 minutes of I read something cool today time. When I was studying for my undergraduate degree, I made it a point to read at least one academic paper per day. The internet is our modern library—let’s take advantage of it!
Staying informed is key for success in cryptocurrency trading. There are a number of different resources available to help keep you up-to-date with what’s happening in the space. The cryptocurrency news websites listed above, as well as social media channels like Reddit and Twitter, will give you access to all of your favorite projects and their communities at a moment’s notice.
3) Frequently reevaluating your trading strategy
Before you even begin trading cryptocurrency, you should be thinking about how often you are going to reevaluate your strategy. Trading cryptocurrencies is not a 9-to-5 job, nor is it one that you can leave once in a while when work gets busy. Like stock markets, 24-hour markets on cryptocurrency exchanges never close so traders need to ensure they’re watching their positions at all times. So, what’s an acceptable timeframe for reviewing your trading strategy? We recommend weekly reviews. At least check in every week to see if there have been any major changes or developments that could affect your strategy. If nothing has changed then there’s no reason to make any changes either! But if something does change, then you may want to consider making some adjustments – after all, it’s better to be safe than sorry!
4) Trading with a broker that has low fees
One of the best ways to trade crypto for profit is through a low-cost broker. Traders can use platforms such as eToro and Plus500, both of which have extremely low fees, to get started trading cryptocurrencies safely and easily. While these platforms do not allow users to directly buy cryptocurrency with fiat currency, they offer a wide variety of trade types that help investors mitigate risk while maximizing their potential profits.
eToro is a social trading platform that allows users to buy currencies such as BTC, ETH, LTC, and XRP on behalf of their customers. There are several ways you can use eToro’s platform, which is great for those who are not familiar with cryptocurrencies.
5) Avoiding high-risk situations
Many traders like to take on high-risk trades because they get a thrill out of it. There’s nothing wrong with that, but there is a big difference between having fun and being reckless. When we talk about risk management, we’re talking about avoiding unnecessary risks that could result in huge losses. One major rule of thumb when trading cryptocurrencies is not investing more than you can afford to lose—one bitcoin isn’t worth a million dollars, so don’t treat it like it is.
Another way to mitigate risk is by investing only what you can afford to lose. Understand that cryptocurrencies are volatile, and your investment could suddenly be worth a lot less than it was when you purchased it. It’s also important not to invest more than you can afford because once your initial investment is made, there’s no getting it back.
6) Learn from your mistakes. They are important
The key to successful cryptocurrency trading is to learn from your mistakes. That doesn’t just mean that you have to pick yourself up after a loss—though, of course, it does include that. You also need to figure out what went wrong, so you can understand how high (or low) a price might go before you should exit your position. When do bear markets like 2014 happen? How do bull markets progress over time? What are some common reasons for crashes? If you know all these things, then when crypto prices start moving again, you’ll be able to make better decisions than if you had no idea why prices were rising or falling in the first place.
7) Incorporate market news into your trading strategies
Constantly checking market news is crucial for any successful trader, whether you’re on a short-term play or long-term strategy. There are tons of cryptocurrency news sources out there; some are quality, while others (like blogs) can be thin on facts but chock full of opinion. At times it can feel like too much information when you have your finger on so many pulse points, but a healthy amount of news monitoring is key to profitability in crypto.
8) Think long term
When you trade your money for digital currency, it’s important to think long term. Cryptocurrency is a volatile market: values can go up or down by hundreds or even thousands of dollars in a single day. While day trading is possible (and profitable) with bitcoin, cryptocurrency as a whole remains relatively immature—meaning that prices are still subject to wild swings.
9) Don’t take things personally – they aren’t personal
There are always two sides of every trade, and even if you didn’t do anything wrong, you may be on either side of a trade at any given time. So don’t let it bother you if someone is blaming you for something that isn’t your fault. It happens. They aren’t a bad person; they just have their own issues to deal with. You can’t control other people, so don’t waste your energy trying. If you find yourself in an emotionally charged situation where there seems to be no resolution in sight, step away from trading for a while and come back when things have cooled down.
10) Maintain consistency in your routine
The cryptocurrency market is very volatile, so it’s important that you maintain consistency in your routine when investing in it. The cryptocurrency market moves very quickly, making some days extremely profitable for traders but also highly risky. One of our most valuable tips for how to trade cryptocurrencies is to only invest when you have a routine or schedule that you can stick with even if there are fluctuations in price.