5 tips to get started with crypto trading

Before starting crypto trading, some knowledge of the markets is required. Even better, trading is also and above all an emotional affair. You will have to learn to control your emotions if you want to act correctly.

The extreme volatility of cryptocurrencies means that crypto trading will give you a cold sweat if you don’t know what you’re doing.
Here are 5 tips to follow if you want to earn more than losses.

Start trading with “small” capital

We will never say it and repeat it enough. Only invest what you can afford to lose. Especially if you are just starting out and not quite sure of your trading skills. You learn best by losing. And if you start, you need to know it and digest it.
So losing small amounts takes precedence over large ones? We (usually) agree on that.
The other advantage of trading with small amounts as we start is not to be traumatized by the losses. How many people had to give up their apprenticeship because they no longer had enough capital?

Start with small amounts, you learn more easily.
It will definitely be more frustrating because generally when you start you want to win fast and fast. But wisdom has shown us that it is this type of behavior that leads to loss…

Learn from your mistakes (and your wins)

This advice is often given to the beginner to keep a trading journal. This may seem boring and unnecessary at first glance. However, this is the only way to track your progress. This is how you can also understand your mistakes. Finally, in trading as in many other disciplines, learning comes from correcting mistakes.
Don’t be afraid to make a mistake. Know how to learn from your mistakes. Analyze why you opened such a position and why it made you lose money.
Also do this for trades that made you win. In fact, if you don’t know why your trade is winning, it’s just luck.
But a trader who generates profits is a person who knows what he is doing.

Be in control of your emotions

Professional traders do not escape their emotions. However, they manage to master them more over time.
For the crypto market, it is particularly sensitive to sentiments and noise. Typically, what is called FOMO (Fear of Missing Out) can lead to you trading at a loss. You will rush to buy a crypto while it is in its ATH. This is the kind of mistake that FOMO causes.

It’s not just FOMO that can lead to bad trades. FUD, which is the opposite sentiment, can lead to equally regrettable results. Don’t listen to the sounds, try to rationalize your feelings as much as possible.

Don’t act on “intuition” or because you “feel” it. Trading is not.

Do not use too many indicators during your analysis

Technical indicators are valuable tools for the crypto trader. There are hundreds of them of relative relevance.
The mistake that novice traders often make is wanting to follow all the indicators at once.
Moving Averages, Bollinger Bands, Fibonacci Retracement Levels, etc.
Sometimes you should only consider the indicators you really know. Other times, you need to use more indicators to validate your analysis.
Don’t confuse all the tools. Instead, learn to master a few instead of all of them at once.
Professional and experienced traders know that it is better to know how to read and interpret the market than to stubbornly link multiple indicators.
There is no single winning strategy in trading. It’s up to you to find yours.

Stay realistic and regular on your profits

This is definitely the hardest advice to follow. An experienced trader may also find it difficult to know how to take profits in time.
The novice trader tends to want to reach the high of the price before selling. This is a very difficult ideal to achieve. Very often we miss the opportunity and keep hitting a bullish return. Very bad strategy.
Sometimes it is also wise to know how to accept small losses to hope for better profits later.
It is better to collect small profits constantly and regularly than to record large profits with large losses.
It must be remembered that the best traders are not those who earn the most (in one shot), but those who survive the longest.

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