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Don’t invest in cryptocurrency, when someone influence you -Follow 11 FAQ

Don’t invest in cryptocurrency, when someone influence you -Follow 11 FAQ

Investing in Cryptocurrencies very un predictable for investors , high uncertainty and very volatile.

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Investing in Cryptocurrencies very un predictable for investors , high uncertainty and very volatile.

If you follow few point  you can reduce your loss , What I have learnt that want to share in this article .What i feel everyone seems to be pointing out the problem, but no one actually seems to be keen on providing solutions. And those that care enough to guide others, do so at a fee in the form of online courses, paid seminars, and more.

This is why I saw the need to put up this article based on my experience and provide some useful tips to guide your trading in a time when the market seems to be bullish. Other than the tips, I will also share with some of the most volatile cryptocurrencies you need to watch out for and the best one among them for day trading.

Don't invest in cryptocurrency, when someone influence you -Follow 11 FAQ

Don’t invest in cryptocurrency, when someone influence you -Follow 11 FAQ

These tips are more of safety rules; and as the soldiers would have it, such rules are written in blood.

Even though we’re not talking about risking human lives here, losing your coins due to trading without a proper guideline isn’t a fun moment.

So, how can we avoid making costly mistakes? How can we ensure that we always remain on the green side?

First of all, you need to understand that profitable trading requires a lot of attentiveness; it isn’t a gamble and nor should it ever be one. Other than the following 11 tips, ensure that you pay close attention to the market forces of demand and supply to be able to know when this or that tip applies.

1.Is crypto currency still a good investment?

Investing in crypto assets is risky but also potentially extremely profitable.

Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.

2.What is motive to investment ?

Now, I know this may sound obvious but it’s important for you to have a clear purpose for getting into cryptocurrency trade. Whether your purpose is to day trade or to scalp, you need to have a purpose for starting to trade cryptos.

Trading digital currencies is a zero-sum game; you need to realize that for every win, there is a corresponding loss:. Someone wins; someone else loses.

The cryptocurrency market is controlled by the large ‘whales’, pretty much like the ones that place thousands of Bitcoins in the market order books.

And can you guess what these whales do best? They have patience; they wait for innocent traders like you and me to make a single mistake that lands our money to their hands due to avoidable mistakes.

Whether you are a day trader or scalper, sometimes you’re better off not gaining anything on a certain trade than rushing your way into losses.

From our years of market analysis, we can comfortably tell you that on certain day or periods, you can only stay profitable by keeping off some trades.

3.Are you ready for manage risk?

Some people offering crypto trading tips might not have your best interests at heart. So don’t get stung making the same mistakes as others.

Set limits on how much you invest in a particular digital currency and don’t be tempted to trade with more money than you can afford to lose.

Cryptocurrency trading is a high-risk business and more traders lose than not.

 

4.Do you know how to set profit targets and make use of stop losses?

If you’ve not heard of the term stop loss in trading, check out this link to help you understand what it’s all about.

Every trade we get into requires us to know when to get out, whether we’re making a bitcoin profit or not. Establishing a clear stop loss level can help you cut your losses; a skill that’s very rare in most traders.

Choosing a stop loss is not a random activity, and perhaps the most important thing to note here is that you shouldn’t be carried away by your emotions – a great point to set your stop loss is at the cost of your coin. If, for instance, you acquired a coin at $1,000, set that as the minimum point you’re willing to trade your coin. This will ensure that if the worst comes to pass, you can walk away with what you invested in the first place.

The same applies to profit levels if you target to get out of the market after hitting a certain minimum profit; stick to that. Don’t be greedy; it’s never a nice color on anyone!


Next point  is very interesting which because it is done by every one……………………………… Yes I am talking about FOMO ( if you really go for trade you cant un touch without this activity)


5. Do you know how FOMO will catch you?

FOMO is an abbreviation for the fear of missing out. This is one of the most notorious reasons as to why many traders fail in the art.

From an outside point of view, it is never a good scene seeing people make massive profits within minutes from pumped-up coins. Honestly, I never like such situations any more than you do.

Beware of that moment when the green candles seem to be screaming at you and telling to you to jump in.

It is at this point that the whales I mentioned earlier will be smiling and watching you buy the coins they bought earlier at very low prices. Guess what normally follows?

These coins usually end up in the hands of small traders and the next thing that happens is for the red candles to start popping up due to an oversupply and, voila, losses start trickling in.

6.Buying just because the price is low it is right decision?

Low prices do not always represent bargains. Sometimes prices are low for a reason! Watch out for cryptocurrencies with falling user rates.

Often, too, developers leave a project and it stops getting properly updated, making the cryptocurrency insecure.

 

7.Do you know Underlying Assets Create Volatile Market Conditions?

The prices of most altcoins depend on the current market price of Bitcoin. It is vital to understand that Bitcoin is relative to fiat currencies and is quite volatile.

The simpler version of this is that when the value of Bitcoin goes up, the value of altcoins goes down and vice versa.

The market is normally foggy when the Bitcoin price is volatile and, as you would imagine, this prevents most traders from gaining a clear understanding of what goes on in the market. At this point, it is advisable to either have close targets for our trades or simply not trade at all.

8. Should I investment in all Going ‘all-in’?

Some of the more suspect trading platforms suggest you should maximize your money by betting as much as possible. This is a quick way to the poor house.

Better crypto investment tips would be to only use a certain proportion of your investing capital — say 5% — and always keep an emergency cash fund that never gets invested in the market.

Investments are unpredictable; even those that seem to offer infinite positive returns can come crumbling down under certain economic condition.

Cryptocurrencies are even more unpredictable.

As much as you can reap profits in thousands in a day or less, the opposite is also true. You can lose everything you invest in digital assets in a flash of a second. So, the best way to get past such uncertainties is through diversification.

Like I mentioned earlier, the value of all other coins is affected by the value of Bitcoin against the USD. When BTC loses value against the dollar, all other coins lose value and vice versa. From that, you can clearly see that diversifying your portfolio among various coins may not be enough to cushion you against bullish markets.

Do you remember when Bitcoin was at its all-time high in late 2017/early 2018? Everyone knew the way to go was to buy as many digital currencies as possible to gain more value over the dollar.

9.Do you Think crypto is ‘easy money’?

There’s nothing easy about making money through trading any kind of financial asset, whether stocks and shares, commodities like silver and gold, or cryptocurrency.

Anyone who says different is probably trying to trick you into making crypto mistakes.

10. Do you keep all your assets in one wallet ?

Cryptocurrency can be stored via an offline “cold” wallet or an online “hot” wallet. Ease of access makes hot wallets a more desirable option for the beginner investor. However, as convenient as hot wallets are, they are susceptible to being hacked, whereas cold wallets are not able to be hacked (if prepared properly). Ideally, it’s best to store cryptocurrency you plan on saving for a long time in a cold wallet, and keep only a small amount that you might use on a daily basis in a hot wallet.

caution ,If you have a hardware wallet for storing your crypto offline, forgetting your keyphrase is like losing the keys to a bank vault.

Without your keyphrase, all your cryptos will be irretrievable.

11.Expect very unexpected things ?

Take it easy while trading: The best traders mastered the art of maintaining their cool even when things seem to be out of hand. Yup, I know how insane that sounds but you’ve got to develop the skill of not trading emotionally, but objectively.

My two cents? Don’t start trading until you’re sure you can be decisive in terms of getting in and out of a trade. Emotional trades have been known to be losing ones; keep calm and watch out for the next opportunity. There’s always a better one to come.

Don't invest in cryptocurrency, when someone influence you -Follow 11 FAQ

Short tips

Short Tips-

  • Avoid Influencer focus on own research.
  • Start always with small amount.
  • Invest what you can afford.
  • Never try to jump in bull run.
  • Try to focus on long term investment.

Know your crypto Terms-

There is a lot of jargon out there in crypto land and often it can be difficult to decipher.

Use this helpful list to make the most of the best crypto tips and dodge common cryptocurrency mistakes that could blow up your trading account.

  1. Altcoin
    A portmanteau of “alternative” and “coin”, altcoin refers to any cryptocurrency other than the original one, bitcoin.
  2. Cryptocurrency exchanges
    Just like regular stock exchanges, the likes of Coinbase, Binance, Gemini and WazirX allow traders and investors to buy and sell — except that here they are trading cryptocurrencies. Unlike standard stock markets, cryptocurrency exchanges are online-only and are open 24 hours a day, 7 days a week.
  3. Limits
    Most exchanges do not set limits or restrictions on the number of cryptocurrency trades their users can make in a day. On turbulent trading days, when cryptocurrency prices are moving up or down very quickly, some brokers may put a short-term halt on people depositing funds on their platforms.
  4. Shorting
    “Shorting” cryptocurrency means betting on the price going down rather than up.
  5. Forks
    A cryptocurrency fork is a split in a blockchain where two separate blockchains are created. This is sometimes but not always because of a disagreement between developers as to how the blockchain should be organised. In 2017, bitcoin forked into two separate blockchains: bitcoin and bitcoin cash. 
  6. ICO
    An ICO is an initial coin offering, like an initial public offering (IPO), or float, in the stocks and shares world. An ICO is where new cryptos are sold to investors for the first time.
  7. Margin trading
    When platforms talk about margin trading, they mean investors borrow money to increase their bet on a cryptocurrency. Be very careful, though, because margin trading can dramatically exacerbate losses if a trade doesn’t go your way.
  8. Fiat
    A fiat currency is one that is backed by a sovereign government. For instance, sterling, US dollars or Indian rupees.
  9. Cloud mining
    People can “mine”, or create, cryptocurrencies to compete for rewards in the form of newly minted crypto. Cloud mining uses remote data centres with shared processing power, like the kind that powers Google software, to pool resources and cut the cost of mining. Be extremely wary, as many cloud mining companies are just scams. An incredible amount of computing power is needed to mine the top cryptocurrencies. Anyone offering easy cloud-mining rewards is likely to be a charlatan.
  10. Bull markets and bear markets
    These are phrases borrowed from traditional stock markets. A bull market means traders are confident in the prospects for a particular investment, meaning they will keep buying and prices will keep rising – whereas in a bear market, traders are nervous and prices will generally fall.
  11. Sell orders
    A sell order is an instruction given by traders to a platform to sell cryptocurrency that they own when the price hits a certain level. In traditional markets, this is referred to as a “stop loss”.
  12. Order book 
    An order book is a list of all the traders on a particular cryptocurrency exchange or brokerage who want to buy or sell cryptocurrency for a certain price.
  13. FUD An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, misleading or false information.

If you are going to start trade, make alternative Email ID.

Fraudsters sometimes contact victims by email or text with an “investment opportunity”. They promise to give investors double or triple the amount they have put into bitcoin if they send their cryptocurrency to a particular digital wallet.

REMEMBER: Offers of free money should always be viewed with great scepticism. Never share your Email ID, Password, Key phrase, coin address, wallet address.

Two websites to analysis about  coin before invest-

http://www.coinmarketcap.com

http://www.coingecko.com

 

Read More – Dogecoin holder getting frustrated

Stay Tuned

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