Crypto trading is an exiting business. Due to the high volatility of the crypto markets there is plenty of opportunities for day and swing traders. But it is not always that easy to make money with cryptocurrencies. There are mainly three things that drive crypto traders virtually nuts.
Suddenly and almost over night the crypto markets were open to everyone and many of whom got rich by trading bitcoin and & Co. But not everybody was able to keep their wins and many crypto enthusiasts lost their money while gtting floored by the recent sell off. One should always bear in mind that trading, and also crypto trading, is a bilateral business and prices can run to the one side or to the other. And – what many crypto traders don’t expect at all – cryptocurrencies can run sideways for months or even years like i.e. the gold market in the last few years. Many unexperienced crypto freaks were thrown into a business which is known as a shark pool where the most experienced grab the money of the newbies.
Be prepared for any direction
When trading cryptocurrencies on rule applies like for any other market: Be prepared for any direction and always count in the worst scenario. Ask yourself: What happens, when the market runs against you? You need to have clear vision of what you do when your losses hit a certain level and stick to your rules to then get out of the market. Like any other market, for example the stock market, cryptocurrencies can go
- or sideways
and you need to have strategy for all of these predictions. Everything can happen at any time in the markets.
Make your homework and stay informed
Yes, you can look at cryptocurrencies just as a normal trading asset such as forex, metals or stocks. But it is far mor better to stay informed about the technology behind it (blockchain) and the recent shout outs from governments and regulators such as the SEC or CySEC. Try to grasp what they have in mind with your cryptocurrency. Some coins are more likely to get prohibited than others. Some are just shitcoins with absolutely no value and no function. Stay informed by signing up with different crypto forums where all crypto related news are being aggregated. You need to know about transaction fees and where you can trade cryptocurrencies.
Next to greed and fear impatience is the trader’s worst enemy. A usual bitcoin transaction can last up to 24 hours and within that period the price can have changed dramatically. If you want to take advantage of a faster transaction stick to eToro crypto CFDs and get an instant executuion. If you have a clear buy level detected stay patient until it is reached. Do not jump in the market in fear of missing a million dollar trade. There is plenty of opportunities and the next day there will be another one.