The first acquaintance with the cryptocurrency market can turn out to be a loss of money for beginners since digital currencies are a highly...
The first acquaintance with the cryptocurrency market can turn out to be a loss of money for beginners since digital currencies are a highly volatile asset. In order for a novice investor to secure their investments from losses, you need to strictly follow certain rules, writes RBC Crypto.
Experts gave tips to newbies to help them get the most out of the crypto market and reduce the number of failed trades.
Don't search for little-known tokens
The search for small cryptocurrencies in terms of capitalization for the purpose of investments that can "shoot" is a very difficult task, associated with high risks, says the head of the fintech company Exantech Denis Voskvitsov. This approach requires a deep dive into the industry, he said. Therefore, the expert does not recommend doing this for novice investors. Denis Voskvitsov advises beginners to focus on a few of the top 10 tokens in terms of capitalization, which can bring good profits in the long term.
Don't use the leverage
At first glance, it may seem that margin trading is created for beginners, but it is worth remembering that leverage is someone else's money and other people's assets, explained Maria Stankevich, Development Director of EXMO Exchange. According to her, leverage, if used correctly, allows you to achieve greater profitability, however, beginners often trade haphazardly and unprofessionally, which is inadmissible with this approach.
Develop your own trading strategy
When buying and selling an asset, you must have a carefully prescribed mechanism for performing your actions, said Andrey Podolyan, CEO of the Cryptorg. exchange crypto exchange. He argues that in the modern exchange world, robots account for the largest earnings since they strictly follow the rules and are not subject to psychological fluctuations.
“Bots are not influenced by the element of psychology that live traders always experience. Psychology is an important factor that often hinders earning, ”the expert added.
Close the deal on time
In the cryptocurrency market, situations often occur when assets are growing rapidly and signs of excitement appear, says Denis Voskvitsov. In this situation, it is worth remembering that rapid growth can turn into massive sales, he warned. According to the expert, at such moments it is easy to lose vigilance and succumb to euphoria.
“The market often punished those who did not have time to jump out of the hype in time,” said Denis Voskvitsov.
The more information a trader has about an asset, the more harmonious his trading, Andrey Podolyan believes. He advises combining technical analysis with fundamental analysis in order to have an idea of what is happening with the asset. There are situations when a coin falls in price or stands still and a trader loses interest in it, but there is important news or a project update ahead that can affect the price, the expert explained.