Cryptocurrency trading?
: 05 mar 2022, 4:44
Trading digital assets is an extremely risky business. The price of cryptocurrencies is volatile, it can fluctuate by 10-20% per day, sometimes by 50% or more. For example, on March 12-13, the price of bitcoin fell from $8,100 to $3,800. In this regard, inexperienced users may get the impression that trading can bring huge profits almost every day. However, practice shows the opposite, as a rule, 90% of newcomers lose most of their capital in the short term and leave the market.
For this reason, it is better to start trading cryptocurrency from a practice account. Some exchanges allow you to create an account with a virtual balance. This will allow you to get acquainted with the market and the structure of the trading platform, to practice.
Then you can deposit a small amount on the exchange. Losses are inevitable, but this is an obligatory stage in the formation of a trader. A beginner should feel what it is like to lose money and hold a losing position. This will help the user understand his psychology: whether he is able to bear losses and not make panicky, erroneous transactions, control himself and make decisions with a cool head. It is better to acquire this skill in advance, without paying large sums for such an experience.
In addition, it is necessary to refer to the theory. For example, read scientific literature on trading, listen to lectures on this topic, take relevant courses, get acquainted with technical and fundamental analysis. All this will help not only to see ups and downs in asset prices on the charts, but also to try to predict them.
By studying the literature and experience of other traders and investors, you can also master various trading strategies. One of these is averaging. It involves dividing the capital into several parts and investing in the asset in small amounts. This method will help you find the optimal point for acquiring an asset.
For this reason, it is better to start trading cryptocurrency from a practice account. Some exchanges allow you to create an account with a virtual balance. This will allow you to get acquainted with the market and the structure of the trading platform, to practice.
Then you can deposit a small amount on the exchange. Losses are inevitable, but this is an obligatory stage in the formation of a trader. A beginner should feel what it is like to lose money and hold a losing position. This will help the user understand his psychology: whether he is able to bear losses and not make panicky, erroneous transactions, control himself and make decisions with a cool head. It is better to acquire this skill in advance, without paying large sums for such an experience.
In addition, it is necessary to refer to the theory. For example, read scientific literature on trading, listen to lectures on this topic, take relevant courses, get acquainted with technical and fundamental analysis. All this will help not only to see ups and downs in asset prices on the charts, but also to try to predict them.
By studying the literature and experience of other traders and investors, you can also master various trading strategies. One of these is averaging. It involves dividing the capital into several parts and investing in the asset in small amounts. This method will help you find the optimal point for acquiring an asset.