If you don’t agree with the regulation of the cryptocurrency market, then you will soon. The financial market is flooded with dodgy dealings and old scams that have seen many lose millions of dollars in investments.
If you’ve invested in the cryptocurrency market, then you understand one thing: it can be a full—time job. You’ll spend hours online checking prices and the best deals in the market. Your dreams will be filled with candlesticks and Elliott Waves.
Unlike stock traders who can relax when the market is closed, crypto traders are forced to remain alert almost 24/7. If you’re asleep at 2 am, you may miss a 10x opportunity. If you spend a few hours at the beach on a Sunday afternoon, you may come back to a -40% bloodbath. So you’re always on alert mode trying to avoid scams and also checking the best time for Bitcoin trading.
First, ensure you understand the steps below before you start trading Bitcoin:
- Learn more about the cryptocurrency
- Choose a way to trade Bitcoin
- Select a suitable trading strategy
- Learn how to multiply your capital
- Start Bitcoin trading
Choose a Trading Platform
Choose a Trading PlatformAfter following the steps above, you can start the actual trading process. Be certain to select a reputable trading platform with advanced trading tools and a wide variety of instruments, such as PrimeXBT – a reliable award-winning margin trading platform that offers stock, indices, commodities, CFDs, and digital currencies.
The most critical factors anyone must consider when selecting a suitable platform for their personal needs, include:
- Community feedback and presence – does the platform engage with its community and they react positively?
- Safety and security – does the platform have a track record of protecting user’s funds? Has it ever been hacked?
- Customer support that cares – look for a platform with live, 24/7 customer support and offer helpful tips or useful information through a aompnay blog.
- Top notch trading tools – only consider a platform with technical analysis software and a plethora of order types for risk management and position protection.
- Variety of trading instruments – ensure that any platform you choose has the assets you want to trade, and then some. Having a variety of markets at your disposal makes building a diverse portiflio possible and lets traders take advantage of where opportunity lies.
Mistakes to Avoid
1. The Stop Drive
It’s midnight, and you’re asleep. Bitcoin’s price falls below the $2000 mark in minutes, which killed your stop, and you lose about $1,000. However, the market jumps straight up a lot after.
This is a stopped drive and can originate from any quarter. For instance, an exchange that knows your stops can crash the price with fake moves to steal your profits. This can be done by selling real coins knowing that it will earn more profit and that it will lose selling enough coins to crash the price in minutes.
This is a license to print money, a temptation that many brokers have not managed to avoid.
Avoid registering stop losses with a platform. Even the most popular platforms may be tempted to take advantage of this and profit from your money.
2. Skill, Not Chance
A common mistake that most beginners make is trading without the needed skills. Ensure you acquire the right skills, knowledge, and remain up-to-date with the latest news. Understanding these steps is how you get lucky. What appears to be luck is many hours of reading, practice, and understanding current news related to the market.
Most beginners get excited about making profits that they easily forget about first understanding what they are doing. Bitcoin’s price is volatile, and many investors have lost thousands of dollars trying to make a quick buck.
If you’re planning to start Bitcoin trading, read about the cryptocurrency’s history, understand what factors move the coin’s price, and then understand how these factors are related to current news. This knowledge will help you decide the best moves when trading to avoid losses.
3. Avoid Pressure
Since Bitcoin’s price touched $12,044 on September 1, the price has been tumbling down. By September 4, the coin’s price had reached $10,000, which was a 5.4% drop, and 10% in the last two weeks.
This affected other cryptocurrencies such as Ethereum, which reduced by 5%.
As many try to discuss what made the crypto market drop, some traders entered into panic mode. Such volatile days may put pressure on new and even experienced traders to dump their coins and invest in cryptocurrencies that have an increase in price.
This is a major mistake traders should avoid. Such bad days are common in the cryptocurrency market and should not influence you to panic, sell, or buy.
Conclusion
Bitcoin trading can be a profitable venture, but only a few people make profits. There are many scams in the cryptocurrency market and mistakes that cost people thousands of dollars. Before starting, beginners should first have the necessary skills and knowledge.
