The following are the 3 of the most important and advanced trading tips that you might know if you are new to the world of crypto trading. Keep reading to learn more about these tips and be sure to implement them as soon as possible if you have already started on your crypto trading journey.
Have a Strong Motive to Each Trade
This might seem somewhat obvious to you especially if you are a professional trader with several years of experience, but it is of paramount importance for you to have a defined purpose to get into crypto trade. Whether your objective is to scalp or to day trade, you should have a motive to trade cryptos and this is actually very important! Trading digital crypto currencies happens to be a zero-sum game- you should realize that for each win, there happens to be a corresponding loss. Each time a person wins, someone else ends up on the losing side.
The crypto market is controlled by huge sharks, quite similar to the ones that put thousands of Bitcoin cryptocurrency in the market order books. Can you actually guess what these particular sharks are the best at? They are extremely patient and they wait for innocent and naïve traders such as yourself to make one mistake that lands our precious money into their proverbial hands owing to mistakes that are frankly avoidable at our end!
Whether you are a scalper or a crypto day trader, there are times when you are just better off not gaining anything at all on a particular trade than rushing your way into crypto trading losses. Any crypto trader with several years in market analysis can comfortably let you know that on particular periods or day, you will only be able to stay profitable by keeping off some of the crypto trades.
Welcome to Fear of Missing Out
To be honest, this one happens to be one of the most notorious and concrete reasons as to why majority of the crypto traders fail in the art of crypto trading. From an outsider’s perspective, it is not good seeing folks make a whole lot of profits within a few minutes from pumped-up crypto coins. These situations are not really desirable for anyone else!
But one thing is for sure and you should make these words carefully:
Be very careful of that moment when the trading green candles are apparently screaming at you and convincing you to dive in the trade. This is actually a very big red flag that you need to be privy to! It is at this particular point that the sharks mentioned earlier will be keenly smiling and observing you purchase the crypto coins they purchased earlier at low prices. Can you guess what happens next? These crypto coins often end up in the hands of small crypto traders and the next thing that takes place is for the red candles to begin popping up owing to oversupply and, then the losses begin to come in at pace!
Underlying Crypto Assets Create Market Conditions that are Volatile
This is another advanced level trading tip that you might not know especially if you are new to crypto trading. The prices of most of the altcoins is contingent on the current Bitcoin market price. It is crucial to understand that Bitcoin happens to be relative to fiat currencies and is rather volatile.
The easier version of this is that when the Bitcoin value climbs up, the altcoin value declines and vice versa.
The market is usually foggy when the price of Bitcoin is volatile and, as you can imagine, this prevents most of the crypto traders from getting a clear understanding of what is really going on in the crypto market. At this particular point, it is rather advisable to not trade cryptos at all or if you do so, have close trading targets!