Lessons learned from Crypto-trading.

in #cryptocurrency7 years ago (edited)

Hello Steemians,

I have been trading in cryptocurrencies since a few months, and today, I want to share some of my experiences and the lessons learned from it. Although, I am not a trading guru, but still I want to share some tips which, I hope, will help you if you are a newbie or planning to get into crypto-trading. Here are the most valuable lessons I have learned in my journey so far.

  • Be calm - Most of us are overwhelmed with the idea of trading cryptos because we all have heard the stories of people who made millions doin this, and we think that it is going to make us some good money too. We start checking the market prices every second and when it goes down, we panic and take some of the worst decisions. So, don't panic everytime the market losses a point or two instead, trade with a peaceful mind.

                    


  • Diversify - Just like in every other investments we make, diversifying the portfolio is the best strategy to minimize the risk and get better return on investment. Putting a lot of money in a single cryptocurrency means a high risk and that's why it should be avoided. Moreover, doing a bit of research on the coin we are planning to invest in keeps us on the safer side because it might be a Pump and Dump or Ponzi scheme which, apparently, can cost us a lot.

                    


  • Don't try to predict the market - This is the most common mistake we make. As soon as we start trading, we start looking at the graphs, numbers, and past performance of a particular cryptocurrency, then we try to decode the data and find a pattern in those graphs. But, unfortunately, this is not going to be of slightest help because the market is very complex and simply unforeseeable. Sometimes, there are people or groups who are very powerful and can manipulate the market, influencing the prices of coins; I would suggest not to trade in these type of coins.

                       


  • Follow the news - This one is really important and can give us an idea about how the market is going to perform. So, instead of asking someone for advice, relying on trading bots, or playing the game blindly, reading news articles about crypto market is something that can help a lot. And don't forget to check the authenticity of that article.

                         

  • Be prepared to work - Many of us think of crypto-trading as easy money, but trust me on this, it is just a misconception. Just because several people made millions in this, it does not mean that we are going to make a million too. Well, we certainly can, but it depends on a lot of factors, and above all, it depends on our willingness to work. So, stop being lazy and get back to work, and start trading only if you have enough time for this.

                    


Thank you guys for visiting my blog. I would be more than happy to know if my article was helpful to you in any manner.

Don't forget to follow me and upvote this post. And for more such articles, Stay tuned.

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Can you elaborate more on the part where you said "Don't try to predict the market?" Isn't that trading is based on prediction? Also, you mentioned not to trade at all.

Yes sure, by saying "Don't try to predict the market" I meant to say that don't try to look for a pattern. Let me tell you my story, I once thought that price of Ripple goes up every night at around 11pm (IST) and it falls in the morning around 5am (IST) (and it really followed the pattern for a few days) so I started trading based on this model and I made some little losses.

And regarding the "not to trade at all" question, there are some people who are influential on the social media. They convince their followers to invest in a particular crypto, and when the prices go up, they cash out their investments which causes loss to other investors (their followers). This is called pump and dump scheme.

I hope I've answered all your questions

That surely did. It is much clearer now. I used to look for patterns in one of the stock market trial platforms and I always end up losing. I earned a lot at point only to lose it all in a day because I was basing it on the pattern.

You echo what I have read that it's better to learn more about something that you have no idea about before investing on it.

Thanks for your insight. Much appreciated.

Great info.....u are a good person...thanks fir letting me know this

I appreciate it. Thank You.

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