How to Trade Bitcoin: 10 Tips for Beginners


How to Trade Bitcoin
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We hear about cryptocurrencies on various news channels every day, and with the current market correction, the market has been in disarray. Some have even speculated that the market may be on the verge of a bubble. But no one seems interested in offering solutions, which is precisely why the problem persists. Some individuals who showed intent to create a solution do so with a fee charged for their service.

Because of this, real trading robots like BitQT emerged in the industry. BitQT robot is an excellent software that can automatically issue and execute buying and selling orders on behalf of the users. As good as using this bespoke trading app sounds, knowing certain things will even increase your chances of making huge profits. Why not sit back and understand the advice we are about to give you on how to trade in the crypto market notable for its volatilities.

Learn how to trade Bitcoin by understanding these 10 tips for beginners

So, how can we keep ourselves from making costly blunders? What can we do to ensure that we are constantly on the green side? You must first realize that successful trading involves a lot of attention; it is not a chance, and it should never be. In addition to the following 10 ideas, keep an eye on the market dynamics of demand and supply. It will enable you to see when each tip is appropriate. You must retain and comprehend every piece of advice presented in this piece. Let us get this discussion started!

1. The first thing to know is to have a reason for becoming involved in each trade.

It may seem apparent, but having a specific goal in mind before you begin trading cryptocurrencies is critical. Regardless of whether you plan to day trade or scalp, it would help if you had a set goal well planned out in your mind before you begin trading cryptocurrencies. It is a zero-sum game, and you need to be aware of this when trading digital currencies. 

Because the direction and movement of the crypto market can sometimes be random, it is occasionally necessary to refrain from trading to maintain a profit.

2. Using stop losses and take-profit is vital for this strategy.

To start and remain a successful trader, you need to know certain trading features. The Stop-loss feature is one of such options you must know how to use.

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You must know when to call it a day on a trade irrespective of winning or losing. Most traders cannot set a precise stop loss level, which can assist you in limiting your losses.

One of the essential things to avoid when setting a stop loss is letting your emotions get the better of you. Setting your stop-loss limit at the cost of your asset is the recommended move because, in the worst-case scenario, you will be able to recoup your initial investment.

If your goal is to exit the market after making particular money, stick to that. Do not bite more than you can chew!

3. Do not succumb to the fear of missing out.

For many traders, FOMO, or “Fear Of Losing Out,” is a common ailment that causes them to feel that they’re missing out on an opportunity for profit. This fear of missing out (FOMO) is one of the most common reasons traders fail. It is never a pleasing sight to see people making huge profits in a matter of minutes using pumped-up currencies from the outside. However, you must always be aware of the market’s most enticing moments. At this time, the crypto market whales are watching you buy the coins they bought earlier at a discount. What is the next logical step? Small traders are the most likely recipients of these coins, and as soon as they do, the losses begin to mount.

4. Manage your risks effectively!

While young pigs eat exceedingly more, older and bigger ones get devoured. In the case of trading cryptocurrencies, this is especially true. Trading apps like BitQT, where traders can make small but consistent gains, are preferred by wise traders over high-risk, high-reward investments. Therefore, it would help if you considered limiting your traded assets in a less liquid market. Such large transactions necessitate a higher tolerance level, while you will set the stop loss and profit target points further from the purchasing range.

5. Volatile markets result from underlying assets.

The instantaneous value of Bitcoin influences most altcoins’ pricing. And this requires you to know more about this big market-moving crypto. To understand Bitcoin, you must realize that it depends on the United States dollar. To put it simply, when the value of Bitcoin increases, the value of altcoins decreases as well.

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The erratic behavior of Bitcoin in the market, as opposed to all other alternative coins, makes it difficult for most traders to get a clear picture of what is going on in the market. So, play safe by either setting your stop-loss for all transactions or stopping trading at this point.

6. If the price seems cheap, do not buy to get a bargain.

A common mistake among novices is buying a coin because the price appears to be low or what one considers a reasonable price. For example, consider someone who chooses Ripple over Ethereum purely because the latter is less expensive to buy and store. The market cap of any coin should be the critical determining factor rather than its affordability when you want to start your investment with it.

The traditional stock exchange is, in some ways, similar to the cryptocurrency market operations. And this is because the market cap of a cryptocurrency gets calculated in the same way by taking the product of the current market price and the total number of outstanding shares.

There is no difference between a coin valued at $10 per coin having 1 million shares in the market and a coin priced at $100 with 100,000 shares. Because of this, it is more reasonable to consider a coin’s market cap rather than its price to determine whether or not to invest in it. Market capitalization is a good indicator of the coin’s investing potential.

7. ICOs and crowd-sales.

Businesses provide the general public an opportunity to participate in their new ventures early through an ICO (Initial Coin Offering). The commitment to sell an asset at a higher price when they get published on an exchange is what these investors receive in return.

Some ICO tokens have ended up more than ten times their estimated value, proving that ICOs may be highly profitable. On the other hand, many more have proven to be complete frauds. And in the process, millions of dollars in investments got wiped out.

When considering an investment in an ICO, one must exercise extreme caution. Try to invest your time noticing all the subtleties that most people ignore when only looking at the promised profits. It is the only way to avoid fraud and enjoy the high gain.

8. Altcoin investors should always exercise caution.

Over time, many altcoins lose their value, sometimes in a short time. As a result, it is critical to realize that if you plan to retain an altcoin for the long haul, you need to exercise caution when doing so.

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The daily trading volume is one of the best indicators of coins that are suitable for long-term investments. The more frequently an asset is traded each day, the better it is for long-term investing. Long-term cryptocurrency investors should look into well-known coins.

9. Diversification should be your key to a successful investment strategy.

Even investments that appear to give unlimited profits might fall apart in the face of a deteriorating economy. Even greater unpredictability can become seen in cryptocurrencies.

In the same way that you might make millions of dollars in a single day, the contrary is also true. Losing all or gaining more on the assets you invested in can occur within a blink of an eye. As a result, diversification is the most excellent strategy to overcome these concerns.

10. Always utilize the goal-setting option.

Make use of the goal-setting feature by placing sell orders in the following categories: Put sell orders in the order books to ensure that you hit your revenue targets consistently. 

Also, when trading, take it easy on yourself. Remember that the most successful traders have perfected the ability to remain calm even when things appear to be spiraling out of control. Yes, you must learn to trade objectively rather than emotionally to succeed in the market.

Why do you need a trading robot instead of going manual in crypto

Crypto trading has become simplified with automated systems in recent years. And these trading robots have effectively shown it worth to all traders that care to use them. They provide high speed, profitability, ease of use, and automation of tedious trading tasks instead of using the conventional trading style.

Conclusion

Do not begin trading until you are confident that you can decisively enter and exit a trade. Stay attentive and keep a level head for the next trading chance. For every bad one that exists, there is always another. You will surely earn profits consistently if you can religiously follow all these recommendations while using a real automated trading robot for your investments, even if you are new to the system.


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Abhay Singh

Abhay Singh is a seasoned digital marketing expert with over 7 years of experience in crafting effective marketing strategies and executing successful campaigns. He excels in SEO, social media, and PPC advertising.