Cryptocurrency is the general term used to describe a digital coin. The coin designed for virtual transactions is by far the new deal for most online businesses.
Cryptocurrencies do not exist as physical objects but digital data for online purposes.
Well, in 2018, Bitcoin experienced a drop from $11,000 to $6,000 per BTC. Bitcoin is arguably the most successful cryptocurrency till date. It experienced a colossal rise from $900 to $10,000 per BTC in 2017―Not to mention other altcoins that are making a name for themselves. The image above shows the most successful cryptocurrencies available today.
These facts prove that cryptocurrencies are still a valuable commodity. When trading, one must pay close attention to the charts and trade with utmost caution. These five memorable tips will guide as you embark on your cryptocurrency trading career.
Choose companies with reputable experience
As they say, “experience is the best teacher” even though she could raise students with bad grades. Well, choosing a reputable cryptocurrency company is a good start for beginners. The company should have years of experience with many good reviews from clients. Companies that allow trading bitcoin and altcoins like etheruem vs dollar exchange are great pointers. They should also have cool trading features like Hedging, Stop Loss features and other options that can give you more control over your trading.
Keep your information private
It’s a popular act that you have to share your public address to receive coins. But never get swayed to share your private keys or passwords with any human or robot. Enter your private keys and password when you’re online. Also, always double-check the right link you are using. Some scammers will mimic similar domains to process trick you into giving out sensitive information.
Cryptos are volatile
If you do not pay close attention to cryptocurrency trading, you could be on the turn to losing your investments. One thing you should be mindful of is price volatility.
In Forex, specific trade techniques could take up to months to manifest but take hours or days in cryptocurrency trading. While this is helpful with regards to making a profit, it could likewise ruin you if the value moves the other way. In September 2017, Litecoin’s worth fell over half in about fourteen days. The recuperation to its past value took over two months.
Watch your moves
Avoid investing more than you’re willing to lose, simple right? Just consider any money you put into a trade as a loss. If you’re feeling itchy about this, then you are likely to trade more money than expected- watch your moves!
You can also use the “take profit” and “stop loss” orders. These features exist in the professional trading platform and can help you cash out automatically.
Don’t pick a bad broker
Selecting a broker to trade cryptocurrency is rather easy. There are many of them out there, but you must use only those that are registered and regulated. Remember to manage your risk and capital; watch out for scam links and above all make sure you enjoy your time trading.
About the Author:
Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His Educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.
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