HOW TO BECOME SUCCESSFUL IN CRYPTOCURRENCY TRADING
OVERVIEW
Cryptocurrency is edging closer to becoming the mainstream transaction in the financial world today and is highly profitable with risk. Won’t It be great to decide to know the protocols needed to trade in crypto and be a successful crypto trader now? let Go!!!
Oh! You have past experience in the industry, good, you are a step ahead. Due to the volatility and great risk involved in crypto trading, you need to follow up with recent trading strategies and risk management concurrently. Learn the protocols in the following guideline on how to become successful in crypto trading.
Introduction
The goal of anyone who is trading crypto is to make a profit and achieve it by either concentrating on only one coin or pairing for instance pairing bitcoin with altcoins like Ethereum paired with USD or EUR. An altcoin is derived from the word “alt” meaning alternative and “coin” that is an alternative to bitcoin, therefore, it is an alternative cryptocurrency. Also, some only concentrate on alts. Trading on one or pairing is all right but what matters most is knowing the right strategy and risk management to meet the targeted crypto profit success.
Becoming a crypto trader and crypto trading profit
Trading is all about making financial decisions with risk-taking. Making profitable returns on the capital risked is a success for crypto traders. Most crypto traders try to grow their portfolio by re-investing, some withdraw the profit and re-invest their capital. Keep in mind, don’t be greedy. To become a crypto trader, it is very important to take note of two alternatives, which are;
1. Buy and sell crypto on exchange:
To buy and sell on an exchange, the chart pattern will show the past price chart you are trading which is a trend to forecast and manage your trade. You need to choose the right platform.
It is advisable to buy crypto directly from the crypto exchange and hold it in a secured wallet. it is more advantageous to hold for long-term trading and not for short-term trading in anticipation of an increase in price to sell, but most traders prefer to sell in short term due to the high volatility of price in long term.
2. Trade crypto CFDs:
This Is the most feasible option for short-term trading. It involves trading with trusted exchange brokers. To trade cryptocurrency CFDs, you must choose the right broker, you can get information on recommended brokers by checking broker’s reviews on trust pilot. These brokers leverage their portfolio which has lots of benefits by putting profit on the falling market to sell in accordance with the crypto up or down trend. The market trend must be well monitored to avoid liquidity risk with CFDs trading because market condition changes from time to time.
It is advisable to use a risk-free demo account for the practice of CFD trading and monitoring, by testing your knowledge about the tool, strategies trading, and crypto product that can achieve your profitability objective without using real capital.
CRYPTO TRADING TACTICS
Trading deals with the decision of when to buy, sell or remain in a particular market. Successful traders use some tactics with consistency to help in decision-making. Trading tactics are used for the efficient process of when to and when not to trade, the time frame, and tend to focus on using your technical indicator when to exit and enter, and more. The tool you use depends on your personal style of trading. Your trading style depends on either of the two below or one of the following types of analysis:
Technical analysis: involves the study of the price pattern of an asset with the aim of identifying trends and making forecasts about the future price movement so as to know the future price movement. There are three technical analysis types, which are; chart pattern, candle pattern, and indicator.
The technical pattern involves the use of drawing tools like trend lines, horizontal lines, and Fibonacci level to identify chart patterns, it gives more clarification on the strength and weaknesses of both the buyer and the seller on the market. For candle patterns, traders use price charts that signal the open, close, high, and low of a particular timeframe. traders use indicators to understand the market condition, it gives signals of rising and falling in the market.
Fundamental analysis deals with using economic factors like inflation, unemployment e.t.c as a yardstick for determining the market trend. it really helps to know why the market is going up or down, and the direction of the market. There are also lots of technical analysis software that you can use.
Roadmap to personal crypto success:
Recognize trend patterns: A crypto trader must be able to recognize the market trend, uptrend, downtrend, and range. You see a trend on your trading view, you look at chat and pull out your trend on the chart to know if it is an uptrend or the market is falling, check the number of support, and you can extend your line to know the next movement. Check your chart resistance and when the upper or lower pattern is broken, try to retrace to understand the new pattern.
Sensitivity: you should be sensitive enough to think about the reverse effect of a project when there is news everywhere, people keep saying that a project will skyrocket, but there is always a possibility of a project crash. You have to follow the trend when the chart is clear and think of a short position in the market.
Be skeptical: you gain your stand, don’t follow all you hear. Lots of bloggers, news, tweet, and influencers are paid to advertise and say more about a project which might not be a genuine project. Foresee a project and analyze it to see if you can invest it in your portfolio. Also, the market will not always boom, learn to adapt. Short the trend when there is a trend fall and leverage on a ranging trend.
Do personal assessment: from time to time evaluate your performance to see if you are able to meet up with the target.
Compartmentalize: most traders always want to re-trade with both the capital and profit in order to earn more but it is more advisable to always separate your profit from the capital you are using to trade to a separate wallet because of market changes.
Be disciplined: you have to stick to your own pattern of the trading plan, follow your strategy, judge chart your way and also join groups in the crypto industry, and try to link with people who can encourage you and give signals about the market that are reliable. Build your own master plan and pursue your target and cash out often.
CONCLUSION
The best crypto trading decision is the ones made after very good market research and analysis. It is very advisable to learn about the market well before investing in your portfolio by trying trading on a demo account first, knowing how to read trends in the market, and don’t be greedy, keep your risk minimal. The tools and information you use for trading will have a great impact on your long-term success as a crypto trader. If you want to create long-term wealth, it is important to invest in crypto with staying powers.
Meet the author: Olaniyan Deborah faith, a crypto content writer.
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