The crypto market is the wild west of the financial world right now. There is so much opportunity to make money, given that cryptocurrency has rapidly reached a $3 trillion global valuation.
But with great opportunities for riches comes great opportunities for going broke. You have to be careful.
If you plan on trading with cryptocurrencies to make short-term gains, you need to have a well-thought-out plan. Building crypto trading plans takes time. But it’s the plan that will protect you and ultimately help you make consistent money over the long term.
Wondering how crypto trading works, and how to build a plan that works for you? Keep reading to find out now.
Understand Cryptocurrency
Long before you ever enter a trade, you need to educate yourself. Education is key. You need to understand what cryptocurrency is, how it works, why it’s important, and what drives its value up (or down).
Spend time reading, listening to podcasts, watching videos, and talking with others who are passionate about cryptocurrency. It’s completely different than any other asset class out there.
Know the Micro and Macro Factors
In order to trade with success, you need to know why the price of cryptocurrencies fluctuates so much. You need to know what types of events trigger huge bear markets, and what events spur bull markets.
By following various crypto news outlets, you can start to pick up on the trends when it comes to shifts in the market, from politics to business, and correlation to the stock market.
Commit to One or Two Cryptocurrencies
Whether you are trading short-term, long-term, or both, it’s helpful to invest in just one or two cryptocurrencies in the beginning. You want to become an expert in that particular cryptocurrency.
There are many options for cryptocurrencies, and each derives its value from somewhere. Choosing one or two will also make portfolio management much less stressful for you.
If you choose popular cryptocurrencies, like Bitcoin or Ethereum for example, you can even buy them with cash from an ATM. This website will show you your nearest Bitcoin ATM, so you can convert dirty fiat into valuable crypto.
Define Your Trading Philosophy
Before you use a crypto trading platform, you need to know what type of trading you want to engage in. Do you like hands-off trading, where you enter a trade with the expectation of holding for months? Or do you aspire to active, time-consuming day trading?
Both can work, but each is suited to a different type of person.
Subscribe to Signals
The easiest way to start reeling in the crypto trading profits is by leveraging the experience and knowledge of experts. This most often comes in the form of trading signals. When you pay to subscribe to a trading signal, experts will send you a message as soon as they discover a good trading opportunity, allowing you to jump in before it’s gone.
Building Crypto Trading Plans That Work
Your success as a crypto trader is determined by the amount of preparation you put into the venture. If you don’t prepare at all, you’ll lose money fast.
But if you’re committed to making it work, and you spend time building crypto trading plans that actually work, you can make profits on a regular basis.
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