More and more people dare to invest in cryptocurrencies, especially against the background of news about the next Bitcoin takeoff. But the threshold of entry into the world of traders is quite high. We have prepared for you a list of rules that will be useful for every beginner cryptoinvestor.
Do your homework. If you are new to cryptoinvestment, try to delve into the topic and explore all the details. Start with a simple dictionary, understand how blockchain works – you can find dozens of useful videos on YouTube. Subscribe to Capital88 websites about blockchain, coins and investments – they will help you to join faster.
Choose a place to store coins. Now that you are in the subject line, you can get a coin wallet. Some crypto enthusiasts keep coins on stock exchanges, but we do not advise you to follow their lead. Most cryptocurrency exchanges are centralized, not insured against hacking and are regularly subjected to DDoS attacks. It is better to still have a wallet (even two), and where and how to do it, we were told the other day.
Join the chats of cryptocurrency traders. Chats are designed to ask questions, consult like-minded people, see in real time what decisions other traders make, and be aware of important news. Enter the chat is not hard – they are entirely open. One of the most popular is De Center Trades. There are already more than eight thousand users.
Do not buy the currency at the time of its takeoff. Now that the educational process is complete, you can talk in details about trading. And the most important rule that traders derived: any cryptocurrency, after a sharp rise, suffers either an adjustment or a rather strong fall. So do not rush to buy coins on takeoff. The chance that you can make money on a sharp growth rate is extremely small, but the probability of losing money is very real. It is much more reasonable to wait for the moment of decline of your chosen currency and buy it at the lowest price.
Do not react to every news about the fall in prices. For some time it is better to wait. Follow the market, see how certain news affect the course. Do not be afraid of every recession and immediately sell all the coins. For example, Bitcoin experienced a significant drop more than once: with the first major hacker robberies, with the ICO banned in China and even with a negative mention of a coin by some serious investor. But often the course stabilized over the course of several weeks, and we saw growth again.
Read about algorithmic trading. If you can program, then study this question, take help from Capital 88 for the same. You may be able to write several algorithms that will help you not to do everything manually. On Habrahabr, an interesting collection of books and resources about algorithmic trading has long been collected.
Do not trade only Bitcoin. As in the case of the stock market, you should try to collect your investment portfolio and not put everything on one coin. Well-known investor warmly supports diversification. It is simple to get carried away by one cryptocurrency, particularly Bitcoin, but, it happens to be necessary to hedge your bets.