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10 Things to Know to Become a Successful Crypto Trader

Crypto Trader
Crypto Trader

Be a Sucessful Trader


JANUARY 7, 2020 / 17:01 UTC

LONDON (Fintech Zoom) – Crypto Trader – In the present climate, scope of crypto currency has increased, people are willing to invest in cryptocurrency. A crypto-trader is someone who profits from short-term changes in the market price of cryptocurrencies, altcoins, and value tokens. The target is to buy the coins at low prices and sell them at higher rates consequently, result in greater rewards.

1. BE patient

A person should be very calm. He should analyze the market before buying and selling of coins as the market can change in hours like bitcoin boost up after the assassination of Iran’s commander within three hours and vice versa.

2. HAVE variety of coins

An individual should invest in variety of coins, making your portfolio more diversified. It will help to reduce the risk factor as loss from one coin might be recovered from other coins’ profit.

3. KEEP on analysing your strategy

A successful trader would always try to invest in those which coins which are favorable in the market. As traders follow their strategy, it is advisable to keep an eye on Bitcoin price and its market capitalization. As Bitcoin’s price increases, its market capitalization increases and this leads to a fall in altcoin prices. This means it’s time to hold or exchange for Bitcoin.

4. DO NOT invest recklessly

Experienced investors may exploit the beginners, they will suggests you to buy particular coins as they will moon just to increase the prices so that they can exit.

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5. LEARN from your mistakes

Never lose hope. Utilize your experience in deciding your next move.

6. LOSS is a part of trading

Profit and losses are the two elements of business. A successful trader has to face some losses to reach the highs. There is never enough research for finding the right strategy, you should keep working at it and try working on new strategies regularly to cope up in every market condition.

7. Don’t be greedy.

No one ever lost money taking a profit. As a coin begins to grow, the greed inside us grows along with it. If a coin increases by 30%, why not consider taking profit? Even if goals are set to 40% or 50%, you should at least pull out some of the profit on the way up in case a coin doesn’t reach the goal.

8. News AND RUMORS

Crypto-traders must keep track of community discussion and news events because this information impacts the market price of cryptocurrencies

9. Developing a Trading Strategy

To become a successful trader, one must have a clear vision, or a good idea of possible market moves and your relevant actions.

10. Have Enough Savings Before Trading

Before you even start trading, don’t use all of your savings to trade in crypto especially in Bitcoin. That’s the number one rule to become a successful crypto trader

 

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Jung Min-seo

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