We all know that cryptocurrency is one of the latest addition to the trading markets, which is seeing a huge increase in the number of participants and the prices similarly. The reason is various, but the major one is the drastic increase in the price of the cryptocurrencies.
Due to this varied price increase, we see a lot of demand in the cryptocurrency, be it bitcoin or Ethereum or ripple, there is a huge demand for the currency, that is soaring high in price and seeing too volatility.
Read here a few tips about starting your journey with this highly volatile cryptocurrency:
Learn, learn and learn:
Yes!! This is the basis of all, but without this pillar, your building will crumble. So, before delving into any platform, and just pay up to buy your crypto, its good that you do some research on the platforms and the chart details. Since this is the first digital currency and no regulating authority like the stock market regulators, the rise in trading platforms is huge and there are a few fake ones too.
Though everything is online and the transaction charges are low comparatively, but few platforms compensate the charges elsewhere, better read for yourself clearly, what are the charges, in detail. Read the platform rules and regulations before signing up.
There can be no much about technical analysis, as technical analysis is all about analyzing the past data and predicting the future. Though the crypto has a past, not a consistent well-settled record, it’s more a volatile chart that is available and never ever tries to predict from the same.
Diversify your money:
Just like in stock markets, its good that you diversify your money here too. engage your money in most of the coins, then one; like invest in bitcoin and Ethereum equally and lesser in Litecoin and ripple. Don’t park all your funds in one single coin, this reduces major loss in profits due to volatility in one single zone.
Here are some do’s and don’ts for the beginners, and yes, the professional ones too can refer:
Don’t expect things to change overnight:
This is the common notion in the minds of common people!! They want to get rich overnight! This is possible only in dreams, or if the lady luck lives for you!! in reality, even the cryptocurrency will take some time to gain your profits, so stay calm until then. You need to keep a stand for yourself, prove that you here to stay longer. Keep a track of price movement in the platform, don’t be in a hurry to sell the coins that you recently bought.
Don’t stop trading because the bitcoin price fell off:
This is one of the worst trading behaviors in crypto trading. Here there are 2 parties involved who are their owners each, there is no regulatory authority, so you need to talk about your worries. Hence don’t drop the trade, just because you lost a few pennies, better negotiate to the most possible extent. This would have a positive impact than running away from the whole trade scenario, which will put you in a bad light.