How to avoid losing money in crypto

26 March, 2018

How to avoid losing money in crypto

Please don’t get me wrong. If you are giving your first steps in the cryptocurrency market and you have no prior experiences trading these kind of innovative assets, you will most likely face a few downturns in your way. But… is that a reason to stop?

Nope. Curious why? Because there are many easy-to-apply tips that will help you reduce risks considerably in your current or future cryptocurrency investment. Let’s check out 3 of them:

Set Stop Loss Orders (Always)


Take Bitcoin as a clear example. The world’s best and most famous cryptocurrency skyrocketed last year from $900 per unit to almost $20,000 a coin. THAT kind of volatility should be taken into deep consideration before placing a crypto order. And not especially due to the gains, but because when 2018 started, Bitcoin dropped sharply to nearly $6,000 per unit.

By the time of this writing, Bitcoin was trading at $8,622 per unit, down 253.0 points or 2.85 percent. The technical summary for a daily time frame suggested strong sell.

Trade With A Cold Mind


This advice is not only applicable to cryptocurrency investments. Actually, it is highly recommended for all type of investors in every single sphere of action. Keeping your emotions away from your trading station will save you hundreds of dollars. It is a proven fact.

Take decisions based on fundamental analysis. Take decisions based on technical analysis. Do not jump into a position because everybody else does it. Trust me. It will work on their side one time, two times, ten times. But eventually, they will all be mistaken and when they are… OH boy!

Is Crypto Investment Right For You?


Well, well… and here we are again. Back to stage one. The most important question you should always ask yourself before putting your money into a certain type of investment is: am I the right type of investor for this stuff? It’s basic, really, but it will help you avoid HUGE mistakes.

If you are the kind of person who is trying to make a few extra bucks without given your trades much attention, the crypto might not be the right choice for you. On the contrary, if you are willing to experiment, learn and act like a professional (even if you trade part time), then go for it.


Source  

Related materials

31 July, 2018

How to Trade Bitcoin Gold

Bitcoin Gold (BTG) is the second fork from Bitcoin (i.e. the second version to stem from Bitcoin’s source code) after Bitcoin Cash. The Bitcoin Gold fork occurred on 24th of October 2017, at block height 491,407...

23 July, 2018

XM gets award for outstanding services

We are proud to announce that in June 2018 XM received two more prestigious achievement awards as acknowledgement for the excellence we represent in the forex industry...

16 July, 2018

Investing in CFD Crypto Currency

FIBO Group company continues to enlarge the investment possibilities by increasing the number of trading instruments and trading accounts they are available on. We are glad to announce that from...

10 July, 2018

Exness now accepts global customers

Having recently expanded our global reach and established a UK-based entity, Exness (UK) Ltd, authorized and regulated by the UK’s Financial Conduct Authority (FCA), we are pleased...

3 July, 2018

easyTrade - new innovative trading

easyMarkets has officially launched its latest trading innovation - easyTrade. Based on diverse vanilla options, this new product allows easyMarkets clients to trade without margin requirements...

29 June, 2018

How to Trade Bitcoin CFDs in 4 Easy Steps

Bitcoin is the world’s first digital currency and it is expanding in popularity worldwide. Now, traders can trade Bitcoin with AvaTrade as the ideal asset in CFD trades. With our platform - MetaTrader 4...