Tag: Crypto Trading Advice

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Crypto Crypto Daily Topic

Horrible Mistakes You’re Making With Crypto Trading

When it comes to crypto trading, there are a number of mistakes that all of us are making. Some mistakes are okay, as they don’t really affect our accounts or our emotions, others though can be horrible, so bad that they have a massive effect on pretty much everything that we do. Let’s take a […]

When it comes to crypto trading, there are a number of mistakes that all of us are making. Some mistakes are okay, as they don’t really affect our accounts or our emotions, others though can be horrible, so bad that they have a massive effect on pretty much everything that we do. Let’s take a […]

When it comes to crypto trading, there are a number of mistakes that all of us are making. Some mistakes are okay, as they don’t really affect our accounts or our emotions, others though can be horrible, so bad that they have a massive effect on pretty much everything that we do. Let’s take a look at some of the horrible mistakes that we see happening quite a lot and what we can do to try and avoid them in the future.

Trading the Same As Forex

Crypto trading looks very similar to regular forex trading, in fact, it uses the same trading platforms and the same charts, from the outside it looks pretty much the same. In reality, the way that it works is very different, but a lot of people fall into the trap of trading crypto the same way that they do with forex. There are some fundamental differences to them, firstly the amount of money being traded is a lot lower, so the markets are a lot more volatile, the markets are also not quite as open as you would think when it comes to crypto.

In the forex world, a single trader can’t make much of a difference, but when it comes to trading, a single trade can cause the markets to shift. The markets are controlled by the people rather than the markets controlling them, so the price is all based on what people want it to be. There are also much larger movements, both up and down, making it far riskier, so you need to ensure that you understand it before you trade. You cannot use the same tactics with crypto trading as you do with forex trading.

Trading Too Much

The trade sizes when it comes to crypto trading vary a lot, 1 lot does not always mean 1 coin. For some it does, things like bitcoin, a 1 lot trade may be trading 1 bitcoin, but if you trade XRP, 1 lot may mean 100 XRP, this can drastically affect your trading. You need to understand how much it is that you are going to be trading. Due to this, many crypto traders start out trading far too much. One major issue with placing trades that are too big is the volatility that comes with crypto trading. The markets are a lot more, so when you have a large trade, one that is too big for your account, as soon as the markets shift the wrong way and they can shift a lot, your account will be in trouble.

Not Watching the News

The crypto markets can be heavily influenced by news about the coin that you are trading or even a coin that you are not. Things like a big business taking up a currency into their service, or a country banning crypto can have a huge effect on the markets. You need to keep an eye on what is going on in the crypto world, if you do not, you may get caught out as you are treading a coin that has just been banned and the price will drop, but you won’t know that and you will only be greeted by the aftermath of a potentially blown account. There are a lot of sites out there that are quick to get the news up, use them regularly, even if it is just when you are on the toilet, as long as you are keeping up to date, you will be better protected from any sudden movements due to news events.

Not Using Risk Management

Risk Management is a key part of forex trading and it is also a key part of crypto trading, if you are trading without any form of risk management then you are asking for your account to blow. It is far riskier to trade crypto without a risk plan than it is forex too. The markets move so much that a single trade could very quickly blow and account if there aren’t things like stop losses in place, it is also vital that you understand how much you’re trading, as we mentioned above, different trade sizes mean different things depending on the coin that you are using. Risk management is key to keeping your account alive, yet so many people are convinced that a coin will go up that they trade without one, only to find the price drop and they lose quite a lot of money in the process. Always use risk management, no matter how sure you are of a trade, as nothing is guaranteed.

Trading With A Small Account Balance

One of the things that make trading so accessible is the fact that many brokers are now allowing you to trade with as little as $10. That is great but it does come with its own problems, if you want to trade successfully then you need a lot more money, in fact with some brokers a $10 account will allow you to place a single 0.01 lot trade on bitcoin, but as soon as the market moves down, even a few pips, the account will blow. You need a lot more to trade well on crypto than you do forex simply because the markets move a lot and the amount that you are trading is a lot higher, especially as you do not get as much leverage when it comes to crypto trading. So if you want to start, start with at least a few hundred, not the minimum that any broker will allow you to open an account with.

Putting All Your Eggs In One Basket

This is a phrase that you probably heard before, that you should not put all of your eggs into one basket. This basically means two things here, firstly that you should not put your entire balance into a single trade, and that you should not only trade single crypto coins. If we look at the latter, there are a lot of coins available, many of the crypto-focused brokers are now offering 30+ different crypto coins to trade, so there is a lot of variety. It is recommended that you do not trade only one, you need to diversify. Trading only one means that you are tied to its performance, if it is not doing well, neither will you, but if you diversify, even if one does not do well, others might, which will mean that you will negate any losses from the first coin. Try and trade more than one, but not too many for it to overwhelm you.

Those Are some of the horrible mistakes that we see a lot of crypto traders doing, the good thing is that most of them are very easily rectified by making a change to your trading plan or by simply changing your view of things. We all make mistakes when it comes to trading and we will continue to do so, what is important for us and the development of our trading is that we are able to recognise those mistakes and to learn from them, to adapt so that in the future we can do better and be a much more profitable trader overall.

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Crypto Crypto Education

How to Get Better Results Out of Your Crypto Trading

Something that we all look for in our trading is ways to improve, ways for us to become more successful and more profitable. The good news is that there are countless things that we can do that can help to improve our overall trading results. Some of them can be pretty big changes, others can […]

Something that we all look for in our trading is ways to improve, ways for us to become more successful and more profitable. The good news is that there are countless things that we can do that can help to improve our overall trading results. Some of them can be pretty big changes, others can […]

Something that we all look for in our trading is ways to improve, ways for us to become more successful and more profitable. The good news is that there are countless things that we can do that can help to improve our overall trading results. Some of them can be pretty big changes, others can be relatively small, whatever it is, making these changes can really help improve our trading. So let’s take a look at some of the things that we can do to help us get better results out of our crypto trading.

Manage Your Risks

Risks are a central point when it comes to any form of trading and this is particularly true when it comes to crypto trading, based on the fact that the risks can be so big. Because of this, we need to ensure that we are managing them correctly. It is a little more complicated for crypto than it is for forex due to the fact that each coin acts and trades very differently. Different coins have different values per lot size, so you need to work those out. However, despite the differences, the way that we manage the risks is very similar.

We need to ensure that we have a risk management plan in the palace, things like a risk to reward ratio which dictates how much we are risking and how much we are trying to make. This will also tell us where we will put our stop losses, and of course, we will be using stop losses with every single trade that we make. We will control our lot sizes and the number of trades that we make and will keep our trading in line with the rules that we set up in our plans. Doing all of that will help us to control our risks and ultimately help us to get better and more consistent results from our crypto trading.

Diversify Your Trading

When it comes to trading, we will certainly have our favourite assets to trade, some will love Bitcoin, others Ethereum, and others something completely different. While it is good to have a favourite, a coin that we really like to trade, it is still important to diversify, to trade more than just the one. The main reason behind this is that it helps to reduce our risks, it helps us to ensure that we can remain profitable even when one of our trades is going the wrong way. A lot of the coins go the same way, when Bitcoin goes up, so do they, but some do not follow this same path. These are the ones to add, so even if Bitcoin were to go down, those coins may not, meaning that you can cover any potential losses from Bitcoin with the other coins. Of course, it is slightly more complicated than that, but it certainly helps and certainly works when done right.

Jot It Down

Do you have a trading journal? If not then why not? You need to get yourself one, these journals are a godsend and can really help you to up your overall game. In it you will be writing down everything that you are doing, from the entry position, the exit position, the time it is open, sizes, analysis is done, and more, it will be your source of information on what you have done and why. You can then use that information to help you to analyse your own trading, you can see what you are doing well, what you need to improve on, and whether or not your trades have been in line with your trading strategy. If you don’t have one yet, set one up, it only takes a minute or two to fill in with each trade and the results that it can help you achieve will more than makeup for the additional time that you are putting in.

Trade

For many people, the thing that is holding him back is not actually trading, as strange as it may seem, for many traders, actually placing the rads is the first issue that they will come across. Not all of us like risk, some of us are very risk-averse and get nervous and anxious every time there is any sort of risk involved. Due to this, some traders end up placing very few trades. When you find yourself in this situation you will also find that your profits start to suffer too. In order to get past this, you will need to kind of force yourself to place those trades, remind yourself that they are in line with your strategy and plan, the risk is being managed and that you won’t make anything if you do not place the trades. It can be hard to get past this stage, but if you manage to do it, you will eventually get used to the risks that are involved in your strategy and it will slowly become a lot easier to palace the trades on a more regular basis.

Continue to Learn

Learning is the cornerstone of trading, you can always find things to learn and you will never know everything. You can know pretty much everything that there is to know about your strategy, but as you continue to learn about other things, you will soon come to realise that there is actually a lot more than you can do with your existing strategy. In fact, some of the things that you learn you will then be able to implement into your current strategy even though you originally thought that there was nothing in relation at all This shows why it is so important to never rest when it comes to learning, always look for more to learn and you will be constantly improving on your trading.

Those are just some of the things that you can do as a trader which can help to improve your overall results. Some of them are quite simple and quick to do, others can take a long time, your entire career in fact. What is important is that you are constant;y looking for ways to improve, even the smallest change can make a big difference in the long run.

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Crypto Cryptocurrencies

The Best Cryptocurrency Advice You’ll Ever Receive

There is a lot of advice being thrown around about things like Bitcoin and other cryptocurrencies, some of it is fantastic advice, other bits are not quite so good and could potentially put you into trouble. Wherever you go, there will be people giving advice on what you should be doing when it comes to […]

There is a lot of advice being thrown around about things like Bitcoin and other cryptocurrencies, some of it is fantastic advice, other bits are not quite so good and could potentially put you into trouble. Wherever you go, there will be people giving advice on what you should be doing when it comes to […]

There is a lot of advice being thrown around about things like Bitcoin and other cryptocurrencies, some of it is fantastic advice, other bits are not quite so good and could potentially put you into trouble. Wherever you go, there will be people giving advice on what you should be doing when it comes to the cryptocurrency world. Today we are going to be looking at some of the best advice that you may hear about cryptocurrencies and what you should do with that advice.

Don’t Buy Just Because the Price Is Low

The cryptocurrency markets are a crazy thing, they have hundreds of ups and hundreds of downs throughout the year. The age-old idea of buying low and selling high is used with pretty much everything in the world when it comes to sales and retail, the exact same applies to cryptocurrencies. You should be buying when the price is low and then selling when the price is high. There are some problems with this, how exactly do you know when the price is at its lowest? The truth is that you cannot and you don’t, you need to guess which is why things can be a little risky, of course, once it has been purchased, holding on until the price comes back up is certainly a good strategy and one that has served people very well in the past.

You Can Trade It Too

A lot of people know things like bitcoin and other cryptocurrencies as something that you purchase and then hold on to, that is a good way to make money and it is what a lot of people are getting very rich doing, however, that works best when you can buy a large amount of it, in the thousands. If you do not have that much then there are other fantastic ways to make money with cryptocurrency, one of those ways is to trade it, much in the same way that we do the forex markets. Many brokers are now offering it and you do not need much, just $10 to get started. You can trade it 24/7 with low spreads and low commissions, allowing even those with fewer funds to trade and earn more bitcoin as they go. Trading is a great opportunity and one that more and more people are starting to take up.

Avoid FOMO

FOMO stands for the Fear Of Missing Out, you suffer from this when you see others doing things that you are not, making you want to do it. This is very prevalent in the cryptocurrency world. When you see someone buying up things like bitcoin, only for the price to rise and they make a lot of money, you of course want to be a part of that and so decide to buy simply because they did, but the problem is that you are buying into something that you do not know about or due to your emotions. The markets may well turn at this point, the other guy will withdraw his funds and you are then stuck with a currency that is losing value, it is under your purchase price so you have no choice but to hold on or to sell at a loss. Do not buy into things just because someone else is doing well and you do not wish to lose out on any possible profits, do your own research and buy what you feel is right.

Diversify

Good advice for any sort of investment or anything that you are putting your money into is the fact that you should diversify, you should not stick everything in one basket or in this case one cryptocurrency. One thing to bear in mind though is that you also do not want to spread yourself too thin, you will want to get on 5 or 6 coins, not 20 or 30, the more you do the harder it will be to keep track of the coins you have and where all your money is. So ensure that you diversify out of just one coin but not too much.

Avoid Rumors

There are a lot of rumors when it comes to cryptocurrencies and we mean a lot. More than there are with pretty much anything else in the world right now. Some rumors end up being true, but the majority of them are not, the majority of them are made up and come from people’s minds, often what they want to happen with no real evidence behind them. So the last thing that you want to do is to listen to them or even worse to act on them. We have seen a lot of people place trades or buy coins based on rumor, and you can probably guess that the results ended up with a loss. So some of the best advice that you can be given is to simply not follow the rumors and do not buy things based on what a random person on the internet has said.

Only Spend What You Can Afford to Lose

Do not use money that you cannot afford to lose, that is one of the golden rules of anything to do with money, simply do not do it. Before you buy any coins, before you place any trades, think about the money that you are putting in and consider it as a loss as soon as it leaves your bank account. Consider whether you need that money, what would you use it for? If it would be used for food or things like rent then you should not be using it at all, you should only use money that would not negatively affect your life. Whatever you do, do not do what some others do, do not borrow money, do not take a loan to trade with or to buy cryptocurrencies with, this will only lead to you being in debt potentially for many years to come.

Those are some of the things that we consider some of the best advice that you can get about cryptocurrencies. There are of course many other things that could help you out, in fact, you probably have a few tips for others too. Keep your wits about you, but with money, you can afford and do research rather than blindly listening to others. That is the best advice that you can use.

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Crypto

Why You’re Failing at Crypto Trading

Crypto trading can be fantastic, it offers so much profit potential and works very much the same way as forex down, so if you have traded forex before then you know pretty much everything that you need to when it comes to crypto trading too. There are however a few differences too, which means that […]

Crypto trading can be fantastic, it offers so much profit potential and works very much the same way as forex down, so if you have traded forex before then you know pretty much everything that you need to when it comes to crypto trading too. There are however a few differences too, which means that […]

Crypto trading can be fantastic, it offers so much profit potential and works very much the same way as forex down, so if you have traded forex before then you know pretty much everything that you need to when it comes to crypto trading too. There are however a few differences too, which means that if you rere to trade exactly the same as forex, things might not go quite so well. At any rate, we are going to be looking at some of the reasons why you may be failing at crypto trading.

Trading Like Forex

While things are very similar, we are using the same trading platform, we are often using the exact same brokers, the charts are the same, and indicators and expert advisors work on crypto trading too. However, even though the majority of things are the same, this does not mean that we trade it exactly the same. In fact, we trade it very differently. The fundamentals behind how the cryptocurrencies move are very different from those on Forex. If you were to trade it exactly the same, you will come across margin issues, you will come across movements that go against all of your indicators. If you are planning on trading cryptocurrencies then you will need to alter the way that you trade, you will need to change your indicators and change the way that you analyze the markets. Do not trade the exact same way, cryptocurrencies are not made the same way and so the markets do not behave the same either.

Not Managing Risks

There are a lot of risks when it comes to trading crypto, a lot more than there are with things like forex and due to this you need to manage them properly, not doing so will only lead to losses and potential loss of your account. Risk management is paramount when it comes to trading crypto, more so than it is for any other asset that we have traded before. You need to ensure that you are using things like stop losses with every single trade, you need to ensure that your risk to reward ratio is in place and being used with every single trade. Make sure that you are using risk management techniques at all times, otherwise, your account will blow pretty quickly.

Too Many Trades

It can be very tempting to place a lot of trades, far more than you should be, especially if things are going well for you. This can lead to something known as over trading, where you simply place too many trades. When we do this it is often going against the risk management plans that we have in place. Each trade that we place uses up a little bit of our available margin, when this runs out the broker will close all of the trades at the current value, most likely for a loss. The more margin that we use, the smaller the drop has to be in the markets for us to blow our account. So try and stick to your risk management plan, if that allows you to open a lot of trades then it may need some adjustments. Try and limit the number that you take in order to keep your account safe and try not to get carried away once you have a few good wins in a row.

Trades Are Too Large

One thing that you certainly need to take note of when trading with cryptocurrencies is the vast difference in what a lot size is, when we trade more than one cryptocurrency, we need to be aware that they will act differently. A 0.1 lot size for bitcoin on some brokers is 1 bitcoin, for others, it is 0.1 bitcoins, things like XRP, 0.01 lot could be 10 XRP for others it could be 100 XRP so it’s a big difference. So you need to be aware that different brokers have different amounts, especially if you are taking trading signals from somewhere. You will also then need to manage your trade sizes in accordance with those sizes, so while you may normally trade 0.1 lot sizes, for some you may need to change down to 0.01 lots or even go up to smelting like 0.5 lots in order to stay in line with our current risk management plans. Just remember that it is better to go a little lower than a little higher.

Not Understanding How Markets Move

The crypto markets work and behave very differently to forex markets, they react differently to news, they can be far more influenced by the larger players than the forex markets can and they have certain seasonal movements, not to mention the huge trends that can double, triple or even increase the price tenfold. These sorts of movements can catch out a trader who is not prepared for them. You need to know these things to properly implement risk management techniques, which are of course vital to the survival of your account.

Not Enough Money

Depending on what you are trading, you will often need a lot more capital in your account in order to trade crypto properly, things like Bitcoin can have huge movements, these huge movements can be both up and down, so if you get hit with a downward movement, you will either need to close out our trade or to have enough money to hold it, which can at times be very expensive and require a very large account. Other coins have similar things happening to them too, so if you are looking to successfully trade cryptocurrencies then you should certainly start with a higher balance.

Those are just some of the reasons why people often fail at trading the crypto markets, they can be dangerous things, there are a lot of opportunities to lose money or for you to be caught out. Having said that, they also offer some of the best returns that we have seen with trading in a long time, the trends are long and hard which are fantastic for those that get it right, but the hurdles are there, it is just about getting over or around them.