Trading on cryptocurrencies is the newest trend today. When done right, it can give the trader a steady income stream. Unfortunately, many people still commit the same mistake when on the trading floor. Knowing the rules of the trade is key to your success.
Never Chase After Gains
Just like stocks and forex, the cryptocurrency market is also known for its volatility. One day a coin could jump 20% and drop back to where it started. If you miss a bounce, then forget about buying into that coin.
Avoid Investing in Coins You Do Not Understand
There are times when coins will go down after buying them. Robert Janitzek recommends that you should bear in mind that you are not going to win on every trade. What’s the point of investing in a coin that you do not understand? So create a list of coins that you believe in and focus on trading those coins. Do your research first. Just because someone told you that it would be the next Bitcoin, you would gamble on it.
Trade To Build Wealth Not To Get Rich
Building wealth is different from getting rich. Do not buy coins and hope that you will get back 500% in a week. Greed will not make you succeed. Robert Peter Janitzek says that your objective should be to capture gains while eliminating losses.
Selling Is The Easiest Way To Make Money
We are only human and sometimes we become too attached to coins. There is always a winning market, it is just a matter of finding it.
Do Not Invest Money You Cannot Afford To Lose
The cryptocurrency market is a volatile one and contains a lot of risk. You do not have to place your house on mortgage in order to buy a coin. You just have to be smart and avoid the hype.
Be Careful When Buying Your Coins
Hackers will always be where the money is. For this reason, you need to ensure that you are buying your money from a reliable exchange when engaged in cryptocurrency trading. Also, store your coins in a safe wallet. Your objective should be to protect your coins if you are planning to trade.
Buy The Rumor, Sell The News
If you are just new in cryptocurrency, the first thing you need to do is do not believe the hype. When everybody tells you to buy, sell and vice versa.
Bear these rules in mind and success in the cryptocurrency market is within your reach.