After a long reflection, you have decided to invest in cryptocurrencies. You’ve done research, saved money, read books on trading. The only downside? You don’t know where to start with crypto trading. Here is a short guide to help you take your first steps in trading.
Risk Management: The Holy Grail of Trading?
that Risk management is one of the most important things if you want to be successful in crypto trading, especially if you are just starting out. Even if you rely on a particular strategy, nothing is ever guaranteed. There is no approach strategy that works every time. Losses are inevitable. However, they can be limited. Start applying effective risk management in your crypto trading system. This is what will keep you in the game long term.
To adopt a strategy for Risk management enough, here are some tips that we have developed especially for you:
- Use orders stop loss and take profit ;
- Risk only 1% of your capital per trade;
- Open trades that have at least a risk-reward ratio of 1:2 or higher.
Starting to trade in the crypto market can be risky. It is extremely important to have a solid risk management strategy in place.
You can start learning trading strategies afterwards. This can be based on reading candlesticks, analyzing technical indicators or a combination of both.
Crypto: where to start trading?
If you are new to crypto trading, then the best thing to do is to learn how to use one Risk management on each trade. This will serve to protect your initial capital. Next, learn how to read technical indicators and candlestick charts to build your cryptocurrency trading strategy. Remember that crypto trading can be very profitable in the long run if you stay disciplined.
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The Cointribune editorial team unites their voices to express themselves on topics specific to cryptocurrencies, investments, the metaverse and NFTs, while striving to best answer your questions.