Trading CryptoCurrencies online has been gaining popularity lately. It is provoking a lot of interest in people. Before you begin making your way into the world of digital currency and start trading, there are a few things you need to be aware of.
What are CryptoCurrencies?
It is digital money which has been encrypted with cryptography. It does have real value and can be exchanged for other currencies, including other digital money, euros, and US dollars.
Now before you register online and start trading, you might find these 8 tips very helpful. They will reduce the number of mistakes you make online.
1) You need to have a game plan. You also need to know why you want to start trading this kind of currency. As with any investment, you should not enter into this world blindly. Remember one thing: Every time you win someone else is losing and every time they win you lose. You need to prepare for the fact that digital currency might not be the right fit for you.
“With any investment you make, you will not get the full profits on your side. There is always someone else taking the lion’s share”.
2) You need to know which markets to look at and when to stop. There comes a time when you will start chasing a loss. You need to walk away before this happens. Trading cryptos are more hazardous than other options in the market. You need to set some very clear boundaries before you begin.
“You need to either quit while you are going strong, or cut your losses and leave”.
3) Some of you might have the FOMO(Fear of Missing Out). I hate to say it, but you need to get over that and yourself. It is okay to sit back and watch others reap the rewards. Tomorrow will bring new options.trades prime
4) Do not go out fishing for the big, white sharks. Find salvation in the little minnows. The minnow will add up over time. The big fish will be a once and done type of thing.
An example:
You order a plate of breaded fish and fries for dinner. You can choose between a plate with a 2or 3 big pieces of fish and fries, or you can order the plate with an abundance of smaller pieces of fish and fries.
Which one will you choose?
I prefer the plate that offers an abundance of smaller pieces, as opposed to the other plate.
“Sometimes, the small fries taste better than the big ones sitting on your plate”.
5) The market will be volatile at times, so expect it and move on.
6) CryptoCurrencies lose their value over a certain period of time. Research which currencies will offer the better return and stick with them.
7) You will see ICO(Initial Coin Offerings). You need to be mindful of these because some of them are nothing more than a scam.
8) You need to keep an eye on the fees. Some exchanges will cost you. They will cost you more than what you make on the deal. The more money you use to trade with, the higher the price goes up, and some will go up as high as 0.1%.
“Do not bet the house, especially when you are in danger of losing it”.
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