Investing in the cryptocurrency market

Beginners make a lot of mistakes, and they usually cost money. In this regard, it is better to get acquainted with other people's experience beforehand to avoid unnecessary losses. For this purpose, we have prepared several rules, which should be observed by every beginner user.

Do not buy cryptocurrency on the news. As a rule, if user found out about some news, which should lead to rise in price of the coin, it probably already happened. If bought - it is obligatory to use stop-loss orders. These are orders to sell coins at a certain price. For example, if a user will buy bitcoin at 00 and the price will go up to 00, you can put a stop loss order on the point of purchase. In that case, the exchange will automatically sell the asset at the specified price and the trader will not lose anything.

Don't get greedy. If you were able to buy bitcoins for ,000, and then the price went up, it is safer to sell some of the coins, and put a stop-loss order on the rest.

Be very careful, or don't trust other people's signals for buying and selling assets at all. At the moment, there are many channels in Telegram and other social networks that publish forecasts for cryptocurrency. Their authors are not responsible for their subscribers' money.

Do not give anyone, especially unfamiliar people, capital for trust management. And if you do, only with a contract approved by a notary public. This practice has been popular in the crypto world for several years and often has a negative result for inexperienced traders.

Don't give in to emotions. Most losing trades are made precisely due to loss of control.

Do not trade on your last money and even more so on borrowed money. Making money in the cryptocurrency market is difficult, and for novice traders - almost impossible. For this reason, you should invest only those funds that you do not regret to lose. And definitely do not invest capital that may suddenly be needed due to the prevailing crisis in the world caused by the Covid-19 coronavirus infection.

Always have funds available in case the price of an asset drops below the level at which you bought.

Don't neglect your education. Trading in the cryptocurrency market is not a casino, but hard, nerve-racking work. It can take years to understand how asset prices behave in any given situation. Try it on https://bitcoinup.eu/.

Record your trades. This will help you evaluate and adjust your trading strategy, as well as identify mistakes you made.

Learn not to lose and recognize losses. If you are unsure of a trade, it is safer to close it and wait for another, better moment. It's better to give the market a small share of capital than to be stuck in a bitcoin bought at ,000 for a few years and miss the opportunity to buy it cheaper than ,000 twice.

To summarize.

The cryptocurrency market does not tolerate a game of luck. Traders are competing here: retail and large traders. Some take their winnings, others leave the market empty-handed and sometimes with debts. That's why trading in digital assets must be taken seriously, you have to calculate every step and think about possible negative consequences.

A beginner must first decide on a strategy: investing or trading. Allocate an amount which he does not regret to lose. Then, buy cryptocurrencies and transfer them to the exchange or a cold wallet. You can preliminarily train on a training account, read thematic literature and take courses, we gave examples of them in this article.

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BitcoinUp Joined: January 7th, 2021