Hello Steemians,
I have been trading in cryptocurrencies since a few months, and today, I want to share some of my experiences and the lessons learned from it. Although, I am not a trading guru, but still I want to share some tips which, I hope, will help you if you are a newbie or planning to get into crypto-trading. Here are the most valuable lessons I have learned in my journey so far.
- Be calm - Most of us are overwhelmed with the idea of trading cryptos because we all have heard the stories of people who made millions doin this, and we think that it is going to make us some good money too. We start checking the market prices every second and when it goes down, we panic and take some of the worst decisions. So, don't panic everytime the market losses a point or two instead, trade with a peaceful mind.
- Diversify - Just like in every other investments we make, diversifying the portfolio is the best strategy to minimize the risk and get better return on investment. Putting a lot of money in a single cryptocurrency means a high risk and that's why it should be avoided. Moreover, doing a bit of research on the coin we are planning to invest in keeps us on the safer side because it might be a Pump and Dump or Ponzi scheme which, apparently, can cost us a lot.
- Don't try to predict the market - This is the most common mistake we make. As soon as we start trading, we start looking at the graphs, numbers, and past performance of a particular cryptocurrency, then we try to decode the data and find a pattern in those graphs. But, unfortunately, this is not going to be of slightest help because the market is very complex and simply unforeseeable. Sometimes, there are people or groups who are very powerful and can manipulate the market, influencing the prices of coins; I would suggest not to trade in these type of coins.
- Follow the news - This one is really important and can give us an idea about how the market is going to perform. So, instead of asking someone for advice, relying on trading bots, or playing the game blindly, reading news articles about crypto market is something that can help a lot. And don't forget to check the authenticity of that article.
- Be prepared to work - Many of us think of crypto-trading as easy money, but trust me on this, it is just a misconception. Just because several people made millions in this, it does not mean that we are going to make a million too. Well, we certainly can, but it depends on a lot of factors, and above all, it depends on our willingness to work. So, stop being lazy and get back to work, and start trading only if you have enough time for this.