In order to start successfully trading cryptocurrency and make your portfolio profitable, you need to have knowledge of the digital asset ma...
In order to start successfully trading cryptocurrency and make your portfolio profitable, you need to have knowledge of the digital asset market. Haste can turn into a loss of funds.
Experts talked about what a novice trader needs to know before starting cryptocurrency trading, writes RBC Crypto.
Get to know the strategies
It is not easy to create your own effective trading strategy, especially when it comes to novice traders who may not have a mathematical or economic education, said Maxim Krupyshev, CEO of the crypto processing service CoinsPaid. According to him, it is better for a beginner to use the works of others and get acquainted with already existing trading strategies.
The expert advises not to focus on any one strategy, but to choose several that are most suitable for yourself and test them on a small deposit.
The right motivation
A novice crypto trader needs to remember that, succumbing to emotions, it is easy to lose everything, warns the head of the analytical department of AMarkets Artem Deev. The expert explained that trading is a business and should be treated accordingly. He advises starting gradually, gaining experience, constantly learning, and not hoping for super-profits, but acting carefully and carefully evaluating your steps.
“This is a really systematic work. And at first, it will be not so much a matter of profit as of the ability to avoid losses, ”the analyst emphasized.
It is necessary to approach cryptocurrency trading thoughtfully and determine the time of trading activity in advance, recommends Maxim Krupyshev. According to the expert, for a start, you can devote several hours early in the morning to select interesting assets and think over the entry points, in the middle of the day you need to check the market situation and stop losses.
“Even at the most basic level, trading will require at least 3-4 hours a day,” added the CEO of the crypto processing service CoinsPaid.
Keep a diary of transactions
You need to record all your actions on the crypto market in order to see a certain system in your actions, explained Artem Deev. According to him, thanks to the diary, it will be possible to see your mistakes with specific examples and prevent them in the future.
“The diary is a large array of statistical data that will allow us to further improve our work in the market and plan more purposefully the profit of our operations,” added the head of the analytical department at AMarkets.
What a beginner crypto trader should avoid
A newcomer to the crypto market should not open positions in times of high volatility, says Nikita Zuborev, senior analyst at Bestchange.ru. He advises not to succumb to the temptation when the price of an asset continues to rise by tens of percent for several minutes or even hours in a row, even when it seems that the growth may continue, the risk of a technical correction exceeds the potential profit.
He also recommends testing new strategies for small amounts and increasing the deposit only after the strategy starts showing stable performance.
The first steps in crypto trading should be done only on the spot market and without leverage, advises Nikita Zuborev, then you can gradually switch to perpetual futures in order to diversify your strategy with short positions. The transition to derivatives futures and options is best done only by very experienced traders with a large deposit, who can allocate part of the funds for super-risky instruments, the analyst warned.