If you are an investor interested in trading crypto,
then the first question on your mind is likely where do I start? Well, the
first step will be to find a crypto trading platform that is suitable for
you. Choosing the wrong platform will lead to wasted effort, money and time.
But how do you choose the right crypto trading platform? You start by understanding your goals. For instance, do you want to take long term trades or do you want to trade short term?
Secondly, you may also want to consider spot exchanges where you can buy and sell actual digital assets such as spot bitcoin. Alternatively, an investor may want to check out derivatives. Here a trader can buy or sell options and futures derived from the prices of crypto assets.
Once you have thoroughly considered your goals, you will also need to take a look at the regulations as well as exchange security.
Here are some of the qualities you should be looking for while searching for a Cryptocurrency trading platform to trade on:
Well-established platform, in existence for at least 10 years.
Sophisticated but simple to use; allows professional level trading.
Features watchlists, Stats, News Feeds, Charts, Copy Dividend tool.
Allows for a one click trading from every screen.
Features a wide veriaty of cryptocurrencies available for trading.
Competitive spreads, flexible leverage and good terms.
Available mobile trading apps both for iOS and Android.
Free and simple to install.
Our Preferred Cryptocurrency trading platform
We currently trade at This Trading Platform. After testing several Cryptocurrency platforms we find this one to be the best. What made the difference is a unique feature that allow us to watch and copy the strategies and trades of the best performing traders on the platform. You can actually see each move the traders make. This method works nicely for us. Since we started trading at this platform we noticed an increase in our successful trades and profits when compared to our former platforms.
Now I would strongly encourage you to go and visit
the above platform right now even if you are not yet decided whether you
want to go into Cryptocurrency trading. Why? because this platform provides tons of free
education materials, videos and best of all a demo account that allows you
to practice Cryptocurrency trading for free without the need to deposit any money.
Simply register for a free demo account and
start "trading" - by actually practicing and experiencing it firsthand
you'll be able to decide whether Cryptocurrency trading is for you.
In any case, before starting to trade for real, it is advisable that you practice with a demo account. Once you build some skill and feel more comfortable with the system you can start trading gradually for real money.
Cryptocurrency Trading Risk Management
Your first concern when trading Cryptocurrencies should be not to risk too much money on any given trade. Unfortunately, many traders start trading without thinking about the risk that they are taking - only about the potential rewards.
If you want to succeed in Cryptocurrency trading you must take into consideration the maximum percentage of the total trading money that you should risk in any one trade. Actually, your ability to limit your losses is equally as critical (or even more critical) as your success in managing winning trades.
The goal of practicing a good Cryptocurrency money management is to minimize risk and increase payouts. For starters here are 3 quick tips:
First, Trading Cryptocurrencies is fun and exciting and money can be made; but you must also keep in mind that like with any other trading there is the risk of losing. Hence, Cryptocurrency trading rule number one: do not trade with money you can't afford to lose.
Second, never borrow money while trading, trade only with your own money.
And third, set and stick to a budget. Write it on your forehead if you have to, but no matter what, when you hit that number, quit trading for the day.
Good money management calls for adopting a conservative investment strategy that means that you should never risk your entire capital.
When you enter a trade (no matter how great it may be), always ensure to only invest conservatively. By conservative I mean that you should not use more than 20% of your capital on any single trade. Cryptocurrency trading like any other stock investing is not a sure thing, there is always a risk factor involved. A conservative investment strategy helps you to conserve your money when things go wrong.
Cryptocurrency trading offers a lot of choices to the trader. A good money management strategy requires diversification. The volatility is much distinct from say trading commodities as well as stocks. Obviously, the payouts may vary depending on the asset which is selected. As the saying goes, never put all your eggs in the same basket.
Losses in a trade should be accepted on a positive note. The effects of a trade that goes against you are able to impact the future or successive trade decisions. Expecting losses whilst investing, whether it is Forex trading or Cryptocurrencies can assist traders in identifying the areas which may happen to be unnoticed. Losses needs to be seen as a stepping stone instead of having it affect you.
Start off slow and scale up - this has a significant role particularly for beginner traders. Certainly do not fall for the emotions and commit your entire amounts right away on one trade. Investing in small amounts continually helps you to take a self-disciplined approach. The majority of Cryptocurrency platforms allow for a rational nominal trade sum. Use this advantage and be sure to trade with patience.
Do not expect to make gains with Cryptocurrency trading as soon as you made your first deposit. No matter if you commit $100 or $3000 the exact same key facts apply. Trade in small amounts until you have the sense of the assets that you're trading. This can gradually build your self-confidence levels and helps to automatically be aware of the indicators and be able to prepare your investing strategy and ultimately help reduce the losses. One of the important things that specifies successful traders has to do with using a good money management strategy.
The above strategy has now became something of an accepted mainstream investment theory and is an ideal method on which to found your own Cryptocurrency trading money management strategy.
As we mentioned before the money management strategy that we recommend is using no more than 20% of your entire budget in any one trade. The idea behind this approach is to achieve optimum growth while minimizing the risk. Simply put, the biggest downfall to producing good results in Cryptocurrency derives from the risks involving losing. Therefore if you are able to reduce these risks, you'll have a far better chance of making money with your account to come.
Aiming and sticking with a strategy which offers successful money management does not just make sure you are not kept up at nighttime; it will as well make sure that a loss will not signal the end of your investing career.
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