If crypto money has made a lot of noise in recent years, and especially Bitcoin, it is often difficult to get involved, whether out of fear, lack of time, or lack of knowledge. The market remains risky but has been more than profitable for many investors. A few advices are to be taken into account before embarking on the adventure.
The difference between trading and buying
To begin with, you should not confuse trading with buying crypto money. The purchase consists more of holding the entire crypto money and conditions are required including being willing to pay the full value of the asset in advance and having direct exposure to an underlying market per account. You don’t want to realize it in a hurry and therefore you are determined to wait until you have a foreign exchange account before you can buy or sell. In addition, you consent to the imposition of introduction limits or maximum deposits, and to paying additional fees for deposits or withdrawals are practices that you accept without difficulty.
Crypto money trading is attractive if your objective is to profit from your position by paying only a fraction of the initial cost and benefit from indirect exposure to several underlying markets with a single account, but also if you want to start trading immediately. In this sense, you do not want to be subject to a maximum deposit limit and pay deposit or withdrawal fees.
Setting up information systems
First of all, you have to take into account that the crypto money market is relatively young and therefore necessarily very volatile. It can take-off during a new announcement or even sink for a second. So, you need to set up a system to stay informed at any time of any news that could affect the value of the selected crypto money. The laws remain particularly to be taken into consideration in a system where banks predominate and where these currencies are still viewed with an evil eye. Your speed of reaction to good or bad news often proves to be a determining factor in the success of your investment.
Essential training
If you have the information, it is far from doing the whole thing. You have to know how to do your trading correctly. In case you are not an experienced investor in traditional markets, training in technical analysis may be a good idea. If you are rather self-taught, there are many online tutorials for example for trading Bitcoin. Feel free to start with small amounts and learn from your mistakes. If you want to do it more seriously, training is still essential and it will often take you a few months to acquire all the necessary knowledge.
Determine your profile
Not everyone has the same type of profile. Some opt for riskier investments than others. Psychology plays a determining role in this respect. Nevertheless, a self-diagnosis of your personality can help you. Your stress resistance threshold plays a particularly decisive role if you like to take risks. If you are not inclined to take risks, it is better to limit your investments even if you have to earn less in the end because you might also lose less. Your stress should remain positive and you should not panic in your choices.
Know how to manage your risk
Not all your investments will make money. You will make mistakes, especially when you are just starting out. Your analyses may not work as you would like them to, and you must admit that there is always a little bit of luck. To properly manage your risk, start like when you play a game of chance and consider the money as lost. Remember that just because you win money doesn’t mean you can’t secure some of it. Opt for diversification and always keep some of your chips to benefit from the rise. Finally, determine a threshold that will force you to stop.
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