Cryptocurrency investors keep losing their money because they lack some of the basics about the crypto industry. The people who care enough to help the investors often do so at some fee, like paid seminars or online courses.
However, you can find online platforms such as https://tradingguide.co.uk/ that provide crucial information about trading online free. This guide offers you free tips and hacks on how to trade crypto safely.
- Learn the Technical Analysis and Fundamentals of Crypto Prices
Before trading cryptocurrency, it is crucial to understand what affects the prices of these digital coins.
Cryptocurrency prices depend on the supply, demand, competition with other cryptocurrencies and their availability. If you understand these factors, you will make informed decisions on the cryptocurrencies to invest in.
- Research on the ICOs
Most cryptocurrencies today raise funds through Initial Coin Offerings. These ICOs have become an easy avenue for preying on vulnerable investors. Financial regulators call them “very high risk, speculative investments.”
The ICOs are highly volatile, with little to no customer protection. That means you should be very careful with these investments. Do some thorough research on everything that pertains to the ICO to avoid being defrauded. Check who owns the coin, its purpose and most importantly, read the coin’s whitepaper.
- Diversify your Investment
Diversification is crucial in any investment strategy you plan to undertake, and that includes cryptocurrency too. Avoid putting all your eggs in one basket. Avoid buying one crypto with all your investment funds. There are very many crypto coins today, so research on other profitable coins and diversify the investment.
- Do not give in to FOMO.
Fear of missing out is one great danger that can make you lose your investment. Because you heard or saw your friend make some good money on Bitcoin, it does not mean you will also be lucky. They did their research and saw an opportunity to exploit the market, which is why they reaped big.
When everyone is talking about a particular coin that is doing incredibly well, it is probably too late. Do not let all the hype about a digital currency carry you and invest blindly. Always do some research to understand more about where you want to put your money.
- Keep your computer safe.
Cryptocurrency is traded online, which means your investment is vulnerable to hackers. To protect your cryptocurrency, ensure your anti-malware software is updated regularly to have the latest security features.
Make sure your data online is safe with you and not give out your passwords to people. Learn about social engineering scams to detect and avoid falling prey to scammers.
- Apply proven trading strategies
There are various trading indicators you can choose from. Many traders love analyzing several factors when selling and buying cryptocurrency.
If you are a newbie in the crypto industry, consider learning some cryptocurrency strategies before you trade. The plan will place you in a better place to earn some good profits.
- Try Automated crypto trading.
As you look for cryptocurrency trading strategies, consider an automated crypto trading platform. With such platforms, trading bots are in use, and they quickly enact the plan you want to use.
Bots will give you the best results as they are more accurate than humans giving you the intended investment goals. With automated trading, you can expect a neutral, conservative or aggressive method. That means you can easily diversify the portfolio, make more money or hold on to the coins.
- Research on exchanges
Before even making any investment decisions, learn more about cryptocurrency exchanges. These are the platforms that facilitate the buying and selling of digital currencies. They are quite many, which means you need to find the best among all those platforms.
Do your research by asking people who have used the platform before and read online reviews. Do not just pick any and deposit your money unless you want to lose your cash.
- Know where and how to store the cryptocurrency
After purchasing crypto coins, they must be stored somewhere safe. You have to know where to hold your investment. Cryptocurrency is kept in a hardware or software wallet or an exchange platform.
Keep in mind that there are several wallets on the internet, so always research and find out which one suits you best. Find out which is the most secure and what are the technical requirements.
Final Words
Trading cryptocurrency is becoming a norm in society, and that is why you will hear many people talk of it. However, do not invest blindly just because everyone is talking about it. Find time to research the industry and learn about the basics.
Source: Plato Data Intelligence
