Tips, tricks and life hacks make our lives infinitely easier. Therefore, whether you are a crypto newbie learning the ropes or an experienced crypto trader who already knows their way around the crypto block, you can always do with a few new tricks. That is why, here are 10 must read Bitcoin trading tips.
These may seem basic, but if you follow them closely, you will definitely benefit in both the long and short runs.
1. Do your research well
For a market as volatile as that of cryptocurrencies such as Bitcoin, research is key.
Even the most well-read of experts find it hard to predict how the market will perform, so do not think you will be able to take a decision based on just on one or two articles on the internet.
Give it a few days of dedicated research, and figure out what the state of the market is and where it is headed before you start trading- be it buying or selling.
2. Assess your goals
Before you embark on crypto trading, know and understand what you are trying to achieve through the trade. Is short term profit your goal? Or do you wish to be a dedicated member of the Bitcoin community for the long haul?
Be self aware about what you want to achieve.
3. Start slow
It can be quite easy to be swept off your feet by the promise of easy profits through Bitcoin trading. However, what you must remember is that this market, at the end of the day, is incredibly volatile. If Bitcoin crashes, you will lose all your investments.
Start slow and do not invest all you have in Bitcoin all at once. Start out with small holdings till you have figured out how to navigate these uncharted territories.
4. Asset Diversification is Key
To counteract your investments in Bitcoin, also make reasonable investments in other safer instruments. Placing your bet on just one asset can spell doom for your investment portfolio.
5. Don’t Sell Based on Rumours
In any investment market, rumours are often rife about prices and market swings. However, more often than not, these rumours turn out to be baseless and lead you to get a much worse deal than what you ordinarily would have gotten.
The common saying “buy rumours, sell facts” should be your go-to mantra in the Bitcoin trading business. After all, it is better to be safe than sorry.
You May Also Read: Top 20 Richest Crypto Investors
6. Analyse Multiple Timeframes
While checking for price trends for Bitcoin for trading purposes, make sure you change up the timeframe in your statistic chart ever so often. Just looking at hourly trends will not necessarily give you the bigger picture.
Similarly, simply looking at the weekly or daily charts can lead you to lose sight of smaller market changes over shorter durations.
7. Analyse Market Tops and Bottoms Carefully
Going through trends of the market bottoming or peaking can be absolutely crucial in figuring out a pattern of buying and selling that best suits your interest.
If you are do not feel confident about analysis yourself, you should definitely consult expert opinions easily available on the internet and market analysis by Team BTCWIRES.
8. Make Use of Tools, Apps and Charts Wisely
A number of aggregator services, crypto statistic apps and market tracking apps are commonplace available for use crypto traders to use. Use these tools extremely wisely as they can help you figure out the pulse of the market with a lot more ease than you would normally have.
9. Handle Losses With Equanimity
Unless you are extremely lucky, you are bound to face some losses sooner or later in this volatile space. The key is to not lose your cool when you do.
Instead, when you suffer from losses, you must remain calm and try to figure out how to minimise future losses and how to counteract the loss you have suffered.
10. Keep Yourself Updated At All Times
Our first tip to you today was to do your research well before you delve into Bitcoin trading. But it is also essential to understand that your initial research can only take you so far.
You must realize that there is absolutely no end to learning. Therefore, reading and keeping yourself updated is extremely important.
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