Tag: Trading Cryptocurrencies

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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 Forex Psychology

The Impact of Psychology On Cryptocurrency Trading

The cryptocurrency market does not follow the rules of technical and fundamental analysis. Only psychology works here. Who will be the strongest: institutional investors, agitating markets with capital, or private investors, who know how to generate profits from these short-term price changes. The psychological patterns of cryptocurrency movements can form the basis for successful strategies. […]

The cryptocurrency market does not follow the rules of technical and fundamental analysis. Only psychology works here. Who will be the strongest: institutional investors, agitating markets with capital, or private investors, who know how to generate profits from these short-term price changes. The psychological patterns of cryptocurrency movements can form the basis for successful strategies. […]

The cryptocurrency market does not follow the rules of technical and fundamental analysis. Only psychology works here. Who will be the strongest: institutional investors, agitating markets with capital, or private investors, who know how to generate profits from these short-term price changes. The psychological patterns of cryptocurrency movements can form the basis for successful strategies. You will learn from this article how to develop a psychological strategy for operating cryptocurrencies.

Psychology of Operation

Cryptocurrencies make up a market that grows day by day. Following the announcement of BTC futures to begin trading at CBOE and CME, bitcoin increased from $12,000 to $17,000, breaking the 60% level of capital in the entire market. Other cryptocurrencies are also growing fast; total market capital grew more than 30% over two weeks, reaching the level of $500 billion. Such a rise attracts more and more traders to this market, who immediately face the need to choose a correct strategy.

It is possibly difficult to make predictions for cryptocurrency with technical analysis, so trading strategy indicators are not relevant here. The market is today immature to use indicators in historical periods. Sometimes it is possible to follow the formation of graphic figures (patterns), but quotes are often unpredictable. One can apply fundamental analysis, but even so, the movement of price is difficult to predict. For example, bitcoin, following news about the futures release, is constantly rising with moderate fixes. IOTA, following positive news from developers in late November, grew 2.5 times over a week, but then fell 40% in just one day, from $5.48 to $3.11.

Operating with fundamental analysis is complicated by several factors. First, there is no economic calendar. Second, there is no knowledge about how the news will influence quotes. Example: deep drop followed by a rise in the price of bitcoin after canceling Segwit2x; investors did not understand at first how to interpret the news. The cryptocurrency market is driven by private and institutional investor psychology. That’s what used to be used to develop a trading strategy.

Psychological Strategy

Most cryptocurrencies continue to increase the price fast, fewer and fewer investors want to set the profits. More and more traders invest in cryptocurrencies, but reserves are declining. In some markets, the margin is 20-25% and transaction fees make trading flat. First, it seems to be one more bubble. Institutional investors deliberately push the price up, aiming at a market explosion after setting positions.

Some considerations about how to make money with cryptocurrencies:

Study the amount of market demand and provisions. Don’t do long-term operations as you can reverse the market trend. If we have an order that will cover more than 20% of the total market volume it is better not to invest. A trader’s goal is not to create profits in the temporary growth of an unpopular currency with low liquidity. The trader’s goal is to minimize risks. Diversify risks. Fiduciary inflow is not as significant as it used to be. Money flows from one cryptocurrency to another.

There is a similar situation when Segwit2x was canceled. Then, after the collapse of the BTC, the BCH ratio immediately increased. Analyze the correlation of cryptocurrencies and study the currencies with inverse relation (e.g., BTC and ECH). If we find a growing market, you will win anyway; if you transfer from one currency to another, you will insure against potential losses.

Buy cheap. The cryptocurrency market is highly volatile. A 20%-25% asset drop is considered normal, so buy when the price is being corrected. If a currency falls more than 30%, then investors will not trust it. Study the volume of trading in markets. You can do it in market sections on the Coin Market Cup website. If trading is not equally assigned, there is a significant excess of trading volume in a single market, which could indicate that someone is deliberately raising the price of a cryptocurrency by creating an expectation around a currency to raise its price and then sell the asset at a higher price.

Don’t go into the market that’s going too high. A rapid rise (20%-25% per day) compared to the previous day may indicate that the rise is speculative and is likely to be followed by a prompt correction. The same was with IOTA and Ripple. Don’t get carried away by ordinary emotions. Communication forums are useful for Forex but not for the cryptocurrency market, where everything is unpredictable. By joining the overview you can get caught by big investors, who use rumors as a tool to manipulate.

Ignore the time corrections. However, cryptocurrency price charts seem like a Ponzi scheme and the goal of traders is to withdraw money in due time, there is no reason for the cryptocurrency market to collapse. For example, analysts predict that bitcoin will break the $20,000 level and grow more.

Categories
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.