When some people hear the words “cryptocurrency trading”, they think about high profits and easy ways of getting money.
Maybe you are not so naive but you don’t know how many people want to get $10,000 in 2 days investing $100.
Today, in this article, I will tell you the truth about cryptocurrency trading and risks that are waiting for you in case you are here not to just play, but to trade professionally.
Is it possible to lose money?
A lot of traders entering the market try to get the 100% guarantee of their profits when they look for the crypto signals channel, for example. And this is the first point – the crypto market is not about guarantees.
Legit traders will never tell you something like “Yes, I promise that you will earn $1,000 in the next month.”, and scammers will do this – they are good in senseless promises.
The end of June 2020 showed us the real volatility of the crypto market. People who hold everything in BTC are celebrating, and people who bought altcoins should be waiting for better days.
How do I know the channel is legit?
The crypto market is not only volatile but very attractive for scammers. If we talk about Telegram channels, I will say that 90% of them are made to scam people, especially newcomers.
Forewarned is forearmed!
Below I will tell you the most important moments to pay attention to:
- Feedback of users.
Here I don’t mean the feedback that are provided on their Telegram channel but real ones, for example, on TrustPilot or Reddit.Also, look for reviews of crypto platforms.
If this channel is unknown but the admin claims they have a lot of experience, you will better find another channel.
Of course, they are very important!Remember that a lot of traders provide fake results. If it is mentioned that they earned like 600% of profit during the last month, this will be the first red flag.
In this situation I recommend you to look for the free crypto signals on the public channel, check them and compare your results to the channel results.
This should show you the real picture.
Is it safe to store all the crypto on the crypto exchange?
A lot of newcomers deposit all of their funds to the crypto exchange account, and this makes them vulnerable to hack attacks.
Which crypto wallet should I choose?
Everything depends on your needs. If the safety of your future wallet is the most important for you, then I advise you to purchase the hardware wallet that is considered to be the safest among all the present storages.
But if you want the storage to be convenient, you can look for the mobile wallet.
The only point is to choose the non-custodial wallet that doesn’t store your private info and keys on its servers.
Such wallets are quite safe, but of course not the safest ones.
Do I need a crypto trading bot?
Crypto bots are not very popular among traders but some of them are very useful.
If the bot is really legit and properly developed, it will be very convenient for your trading.
If you follow the crypto signals channel on Telegram, you will need to look for the bot that operates on Telegram as well. Of course, you can choose any desktop bot but then you will need to copy all the settings from the signals, and Telegram bots (Cornix, for example) will do it for you.
How much should I invest in every deal?
This is a very common question. Of course, there are different strategies. Some traders like to invest 30% of their capital.
If you are a newcomer, I will advise you to invest no more than 5%, this will help you to avoid big losses.
What about margin trading?
I assume you know that trading with leverage is very profitable.
But do you know that it is very risky as well?
If you trade with 10x leverage and have 5% of profit, it will mean you have 50% of profit!
Because if you lose and your loss is 5%, you will lose 50% of your total investments.
And 10x is not the highest leverage. Some people trade with 50x, 100x leverages.
If your biggest wish is to start trading on BitMEX, you will need to learn a lot. Anyway, start with the spot market. And as soon as you have enough experience in trading, you can try leverages.
P.S. Don’t start with high leverages – try 2x or 3x at first.
How to deal with emotions during trading?
“I invested $500 in BTC and in some weeks I saw the increase and my capital was $650. I was very nervous and impressed and decided to withdraw it as soon as possible. In some days I realized that I could earn twice as much.”
Have you heard such stories?
Of course, there are people who don’t like to risk.
If you know (because of your own technical analysis or crypto signals) that this or that coin is going to increase in price, stay calm.
The same is about losses. It is okay to have losses – even experienced traders have them. So don’t be afraid when you see 5% of loss.
(Yes, there are so much emotional people)
So, in this article we discussed all the questions and pitfalls that can be important to know for beginner-traders.
If you are going to use the crypto signals Telegram group, the most important moment you will need to do is to check everything. And when you find a good channel with a great support team, they will tell you everything important and will help you with every question.
Stay calm and earn!