Crypto Trading is not cut and dried for everyone. That being said, it is also not something that requires you to go to an Ivy League institution. In simple terms, crypto trading is similar to any other form of currency trading, whereby you trade crypto coins with a CFD trading account. ( contracts for difference, speculative trading without owning the underlying asset, see end of article for more)
Other than this, crypto trading is also practiced by selling and buying the coins through an exchange. Easy peasy, right? The reality does not match the narrative here because speaking in general terms, 95% of the traders lose their money. The fact that crypto trading is exposed to the same market forces and human emotion as any other currency does not make crypto coins indifferent. Moreover, bitcoin’s fall in value by 70% led to the cumulative losses of $1.7 Billion in 2018. So, if you don’t want to be a part of the losing side, follow these hacks to protect your investment.
Plan your Investment
It is commonly said in crypto trading that failing to plan is akin to planning to fail. Thus, do not blindly enter the market with a bang and invest everything that you have in the crypto coins. Take your time to do research and understand the trends. Indeed, you cannot extrapolate the market positioning for the future, but trends do help us identify the stability of the market.
Know your SL and TP Points
Stop Loss and Take Profit reflects the moment when you enter the market and exit it. In other words, you must know what the price that you are willing to pay for starting a trade and what is the price at which you will trade-off is. Miracles and lucky ducks are rare in the trading world. It is all about planning and knowing when to play your cards right. So, before you invest, measure your return and ascertain the probability of your coin hitting the desired goal. The moment you see your investment is reciprocated with a return high enough, take the plunge and take it all out. That is the smart thing to do.
Choose the right Crypto Trading Platform
Not everything that shines is gold, isn’t that right? Well, applying the same thing to the crypto trading platforms, not all of them are legible and authentic. Before you choose a platform, read about its operations and check online for anything that says, “fraud, scam, or phishy.”
A good habit is to choose only those platforms which are registered under the company act or similar legislation of its country of operation. This will give clarity about the authenticity of the trading platform.
Is The Crypto Trading Platform Secure?
Talking about hacks, the crypto world is also not immune to hacking attacks. This puts all your investment and of so many others at a high risk of loss. So, before you choose a platform, ensure that it has set appropriate security measures.
Know the Additional Fees
The crypto trading platforms are not good Samaritans; they charge you for the services provided. At times, these charges and fees can eat up your profits without you knowing. Therefore, always check the associated fees for transferring, selling, buying, depositing, spreading, and withdrawing.
Trade Crypto at your own risk…
Ironic, right? Because anyone who will guide you, train you or even suggest you about any type of trading, let alone crypto trading will add this disclaimer. The mere addition of this statement guarantees that there is no guarantee in trading. It is all up to you to know the market, understand the risks, and invest accordingly.
What is CFD trading and how does it work?
Trading contracts for difference (CFDs) is a way of speculating on financial markets that doesn’t require the buying and selling of any underlying assets. Find out everything you need to know to understand CFD trading, from what it is and how it works to short trades, leverage and hedging.