Cryptocurrencies can be confusing, unpredictable and frustrating unless you know how to deal with them. Here are five simple steps towards parenting cryptocurrencies and earning regular, reliable investments.
Know what you’re doing
19.11.2019 | in Forecasts
Learn, learn, learn. The more knowledge you have about trading, the better your position will be. Start off with the theory behind cryptocurrencies: make sure you know your candlestick chart from your spread chart from your depth chart. Then, make sure you’re following the latest news and developments, so you’re not caught out. Once you know about the environment, you can start looking for a platform to trade on. Make sure you do your research here too: don’t set up an account on anything you’re not comfortable with, and use a dummy account if you’re unsure to begin with.
“To keep your knowledge up to date, become part of the community. Join forums and subreddits about trading and cryptos, and just like you’d diversify your portfolio, diversify your news sources so that you don’t miss out on news or innovations,”
explains Jules DIRK, a crypto writer at Brit Student and Write My X. But bear in mind that big investors sometimes use social media to their own uses, unloading their less profitable currencies onto new traders. Don’t act on any news until you’ve assessed the situation.
Set your limits
Don’t set out to trade everything every time. There are hundreds of cryptocurrencies in circulation, it’s easy to spread yourself too thinly and restrict your potential earnings. To begin with, pick one or two cryptocurrencies that you will commit to until you’re seeing a regular profit.
04.07.2019 | in Trading
Another essential is to have clear stop loss and target levels. If you’re not sure what this means, go back to point 1….