Cryptocurrency has been one of the most discussed topics in 2020 in the finance industry among other investment options such as the stock market. However, while the trends might want to make you join the crypto train, you must take your time and do proper research before venturing into it.
It’s been reported over the years how 95% of traders tend to lose their money in the market and fail. Beginners are also likely to give up in their first month or year. To succeed as a crypto trader, especially in 2021, there are certain things you must know.
Learn How Crypto Trading Works
Before getting started on crypto trading, it’s important to understand the basics of how it works to improve your success rate. Learn as much as you can about the crypto market before making your first move. It might be tempting to rush into it based on the trends and how much people are talking about it but you should never trade or invest in what you do not understand.
Another rule of thumb is to never invest any amount that you’re not willing to let go of. This is due to the price volatility and the risk of losing your money. Knowing the perfect time to buy and sell your crypto can be learned. You can enter the crypto trading market as a beginner but you don’t have to lose a substantial amount due to your naivety.
Choose a Trading Platform
Your choice of a trading platform is one of the most important decisions to make, as it plays a huge role in helping you reach your goal. There are several trading platforms available today, and choosing one can prove a little difficult. However, you must look out for key features such as security including two-factor authentication, access to daily trends and news, compatibility with your bank, must have your preferred payment method, and reputation and transparency, among other things. As a beginner, you can try to visit the official Bitcoin Profit website and start your trading journey.
Form a Crypto Strategy
Forming a crypto strategy should be the next important thing to do after choosing the right trading platform. This strategy should include your method of trading, whether it is day trading, scalping, swing trading, bitcoin hedging, or the HODL (buy and hold) method. You can also choose the crypto you want to trade in; while bitcoin is the first and most popular crypto, there are many others you can choose from. Other strategies you can engage in include following the trend, investing in staking coins or tokenized crypto funds, lending your crypto via lending platforms, and choosing your preferred trading duration.
Anyone can decide to trade crypto today but what differentiates one trader from the other lies in the knowledge. Take your time to research all that there is about crypto, choose your trading platform, and map out the perfect strategy to get you going. Trading in crypto in 2020 might seem difficult but when you get the basics right and continue learning, it keeps getting better.