5 things you need to know before trading crypto

[Asmonist]

I agree with these 5 things guide in trading. Its really good to have our own research for us to personally know. Aside from asking with other experienced crypto traders, doing our own research is something that we can finalized our decision making. My other most important thing in trading is to trade amount that you are willing to lose. Its really good to set a certain amount because it will also give you a sense of security. All others are very important as well.

[TimeTeller]

Sometimes, the celebrities and the politicians will impact the trading market a lot. So it is important as well to subscribe news updates.

That's a witty valid point. 

But what the OP gave as pointers are really of importance in trading.
However, if you want to experience the heat of trading, you need to be on the field, right?
And since you already know those basic points, you can use those as your guide.
Because the real battle is sometimes totally different than what you expect.
Skills and experience will give you better advantage on this quest.

[Reid]

Invest what you’re willing to lose

This point is utterly crucial. Never invest more money than you are willing to lose. That’s just a bad idea. Taking loans, maxing out credit cards, or even just trading outside of what you’re comfortable with and can afford, is a recipe for disaster.

Only ever invest what you’re willing to lose. There is always a risk to crypto trading, no matter how well you’ve researched a coin, so always be prepared for a negative outcome.

Newbies mostly forget about this. It is just the same as how it is in spending money outside.
Just spend what you can afford.
Same with trading, spend only what you think you could lose.
If it wins then it is a good thing but always be ready for the trade to go south. Shit happens.

There is no such thing as a perfect trade. All those videos that you will see was just their better side. Of course they wont let you see how they lose a lot of money.

[Ridwan Fauzi]

These things are really important when we are intend to start become a trader. I wouldn't be agree if someone who are newbie to trade ans he just make a yiutube channel as a source, because there is no point that explain an analyst as a whole, even most of the video just explain how to get profit only, that is worst thing to me. But I'll agree if a video or youtube channel be used as an introduction to know the feator of trading place because the majority of trading place platform are same.

I'll add another important thing before someone who start to trade and this is my opinion only. I'll add an experience/evaluation that need by everyone who start to trade. The history will repeat itself always imagined in my mind, at least it will help me when I find the same candle chart or the same movement price I'll be easy to deal with it and I'll get more profit because I have known it. Then, an evaluation after I trade will help me at least to remind the strategy that I use and something that must pay attention when I use the strategy again.

[Henri Cartier]

I was reading an article where I found 5 more things we need to know before trading crypto. Following are the points need to be followed by the investors -

• Research: Do a lot of research before trading cryptos. Don’t go through a few articles on the internet and conclude that you know enough about Bitcoin, because knowing it like you know the back of your hand takes time. Find a mentor in the crypto space who is resourceful and trustworthy.
  
• Baby steps: Start with small investment before investing more money. Timing is the key when it comes to investing in cryptocurrency. Once you decide on an entry point, don’t change your mind just because someone told you otherwise.
• Broaden your horizons: When investing on Crypto, diversify your portfolio. Other than Bitcoin, you can also invest on other altcoins equally across different components maintains a balance.
• Keep your coin in wallets: It is good to store your coins in cold wallets than hot wallets.
• Buckle up, it’s going to be a wild ride: As a new investor, you need strategies to help you manage price fluctuations. Aside from diversifying, you should buy and hold Bitcoin — this means resisting any temptation to get into short-term bets. In the crypto space, passive investment has a better chance of succeeding than an active one.

Source: https://cointelegraph.com/news/top-five-tips-for-new-bitcoin-investors

[Triffin]

One more thing, always care with the news because crypto price is always move when the coin have a bad or good news. Always be up to date and be the first person to know the news about crypro will make us safe in crypto currency trading. Beside that, we also have to know the technical analysis to do a day trading or if we want to pay our living from trading we have to really understand technical analysis

You're right . All coins are easily affected by the news so there is a need to be extra careful in investing. Any news can affect the coin you are holding and it's easy to change the value in the short term. We are just ordinary investors so we usually do not do much research, but now it is certain that the research should always be the top priority because the current market is more risky and more unpredictable this year.

I usually have a backup plan if the coin drops suddenly because if the market goes down it will be very difficult to invest and it can completely cost you huge losses. The best advice to focus on monitoring this market every day and only trust in yourself.

Sometimes having too much focus on the market made us so stressed in the long run. Much better if we seldom check on the market trend movement in order to avoid being emotional, and learn how to be specific on your decisions in order to be strong enough to face such challenges in trading your crypto assets.

This is the major reason why I am involved in long term trading and that too only with bitcoin because in that way I am able to avoid majority of the stress giving news, predictions and trends. Cool minds are always able to make right decisions and I, along with majority of the day traders, am unable to have good control over my emotions when my crypto asset is having bearish market.

[jakoylantern]

For me, most of the people said its correct. The first list in my mind before entering trading cryptos is known as the nature of the trading industry, like what is the difference of trading crypto to a stock market ( which is cryptos price is very fluctuating, and it can be volatile by an hour ). The second thing is you should learn the basics of trading and gaining some knowledge. The third one doesn't be afraid to ask, to try, to explore, to failed ( at first attempt) because it will help you to become a better trader. The most important is don’t spend some money that you can’t afford to lose because in this kind of industry there's no easy money, especially if you don't want to make any effort.

[DBronze98]

I want to add the author's ideas. These are the two factors that help traders win in the long run. According to my 3-year trading experience, I think that it is very important to plan and manage capital and trade.
It will be the deciding factor of winning or losing in a month of your trading. Because there are people who have very good knowledge of the types but don't control the psychology when trading, so he loses more money.
We should practice psychology and discipline before trading really. it will be better.

[Cling18]

Crypto trading is not always successful, there will always be risks that we can't get rid of. These tips are helpful and necessary for us to overcome all the risks that we will encounter here. We should also know how to handle our emotions because crypto is unstable and is volatile. We must learn how to deal with every market situation and take it as an opportunity to earn. Doing your own research will be a good start for you to succeed in trading.

Trading will never be easy without enough knowledge.
It's not like a single lesson where we can learn and apply everything. It's a continuous process of learning.
We can't handle our emotions if we don't know how the market flows so before we start trading, we have to focus on gaining knowledge first.

[cryptoloverlife]

Crypto trading is not always successful, there will always be risks that we can't get rid of. These tips are helpful and necessary for us to overcome all the risks that we will encounter here. We should also know how to handle our emotions because crypto is unstable and is volatile. We must learn how to deal with every market situation and take it as an opportunity to earn. Doing your own research will be a good start for you to succeed in trading.

Trading will never be easy without enough knowledge.
It's not like a single lesson where we can learn and apply everything. It's a continuous process of learning.
We can't handle our emotions if we don't know how the market flows so before we start trading, we have to focus on gaining knowledge first.

Yes, without knowledge about trading it is impossible to predict the prices, within days it is impossible to get knowledge about trading and start applying. We will get to experience only with practice on trading because without practice, we cannot understand the mistakes.

[Dart18]

Do Your Own Research (DYOR)

DYOR or Do Your Own Research is a super common term within the crypto community. DYOR is pretty self-explanatory, but serves a reminder to always investigate coins before you buy them or start trading with them.

There are tons of resources online for you to start with. From cryptocurrency subreddits to Youtube, Quora, Twitter and BitcoinTalk forums, you’ll honestly never run out of new things to learn. Starting to trade crypto is a personal decision, but you can make sure that you’re guided well and you have a wealth of knowledge at your side.

I feel like if I do this then I will be safe already.
If there is a camera outside this time then all can be seen.
Besides, we are in the time of satellites where everything could be seen everywhere.

Do not be a joke to anybody. As I can see the anti crypto is still retaliating. Better be ready as always and help those which are in needs.

[KallyFowler67]

Thank you for these interesting tips. I also start to trade and recently faced with different methods. Recently, I found that https://www.monfex-academy.com/masterclass-refers-new has a good training for trade beginners. There are a lot of informative courses, lessons etc.
I also prefer to make money online and think that it's a good method.

[doomloop]

One more thing, always care with the news because crypto price is always move when the coin have a bad or good news. Always be up to date and be the first person to know the news about crypro will make us safe in crypto currency trading. Beside that, we also have to know the technical analysis to do a day trading or if we want to pay our living from trading we have to really understand technical analysis

You're right . All coins are easily affected by the news so there is a need to be extra careful in investing. Any news can affect the coin you are holding and it's easy to change the value in the short term. We are just ordinary investors so we usually do not do much research, but now it is certain that the research should always be the top priority because the current market is more risky and more unpredictable this year.

I usually have a backup plan if the coin drops suddenly because if the market goes down it will be very difficult to invest and it can completely cost you huge losses. The best advice to focus on monitoring this market every day and only trust in yourself.

Sometimes having too much focus on the market made us so stressed in the long run. Much better if we seldom check on the market trend movement in order to avoid being emotional, and learn how to be specific on your decisions in order to be strong enough to face such challenges in trading your crypto assets.

This is the major reason why I am involved in long term trading and that too only with bitcoin because in that way I am able to avoid majority of the stress giving news, predictions and trends. Cool minds are always able to make right decisions and I, along with majority of the day traders, am unable to have good control over my emotions when my crypto asset is having bearish market.

Instead of feeling bad and down during bearish market, don't you think buying more bitcoin would be more beneficial. We all know that this bearish market is not destined to stay forever. Though we cannot predict the exact time for the pump but the fact that it will come remains same. Above all, even during the bearish market, bitcoin shows good changes in amount making trading possible.

[JessicaVL]

Agree to those points above but these are the things i do want to add up.

1. Read and understand on what you are getting into. Cryptocurrency is quite a broad space.
2. Learn trading basics and coins would be traded.
3. Be keen on reacting either FOMO or FUD.

The best one is that only invest on the amount you can afford to lose as always.

Thanks! Those are some good points. FOMO is definitely one to watch out for, on top of not giving in to FUD. I think doing your own research is also crucial to making successful trades.

[JessicaVL]

Hmmm nice list. I honestly though at first HODLing was a joke and well, the joke punched me back in the face. DYOR and investing what you can lose are the top 2 for me though, especially DYOR. Without it, its like fighting a war without a gun. I'd also advise brushing up on your trading skills though since it is before trading crypto, id guess thats already a given.

Hahaha! No, that's totally fair. HODL and DYOR are both really important strategies, but no strategy is foolproof. So I have coins that I HODL but I also CFD trade on eToro. I think we've all made mistakes at some point or another - that's just the way trading as a noob goes. Brushing up on trading skills is definitely important.

[JessicaVL]

I just want to add for the list is learn first the fundamentals of trading. Before engaging in trading you must have gain an experience first so that you can realize what is the do's and don't also it wouldn't hard for you to deal with problems. Always remember that set aside our emotion because this will be only a hindrances in our trade. I like the idea of diversifying our trade to avoid losing all of our funds, just like what other said "don't put all the eggs in one basket". Remember as well that invest only the money that you can afford to lose.

Definitely! Learning about the fundamentals of trading is super important. I think ensuring that you do your own research, and don't give into FOMO and FUD also covers you quite well. And as you said, only invest what you can lose.

[JessicaVL]

FOMO and FUD is the hardest. You may not even engage in trading but just investing crypto for holding coins but you will always think of losing money when prices drops and bear market continues for years.  A friend, a holder who had kept his coins for years since 2015 tried to update his wallet and took profit because of FUD. You may find yourself in such situation during bear market. If the price of BTC rise so high, you wouldn't really think of the riches to lose after that.

Not giving in to FOMO and FUD can be really challenging - we're all human and we all want to get the best out of our trades/investments. I think you're definitely right about that.

[JessicaVL]

All of the things mentioned in the OP are true, and I also have a similar opinion. Trading is not just buying coins at low prices and
selling coins at high prices, but there are some rules that are must be run like investing money that we can afford to lose, do not
be fanatical about one coin, do technical analysis and fundamental analysis to see the movement of coins in the market, and most
importantly do not become panic traders. Those are some basic rules that need to be known before starting trading, I suggest not
to break the rules, This is in order to gain profit in trading and avoid losses.

Yeah! Those are some fundamental truths about trading that all newbies should know. Thanks for your input! I think just learning as much as possible is important for any new trader.

[JessicaVL]

For HODL only suitable for coins that are stable enough or can be said for coins that are in 1-50 coinmarketcap rankings, the rest if you choose to HODL will lead to more destruction, I prefer to sell if it has decreased 10-20% because it's the limit I can bear, also don't put all the fund in one coin better to seperately.

That's an interesting take - I think you could HODL any coin if you wanted to, but it may make more sense to HODL only the top coins as you said. And yes, having a diverse portfolio is important to help limit overall risk.

[Taskford]

For HODL only suitable for coins that are stable enough or can be said for coins that are in 1-50 coinmarketcap rankings, the rest if you choose to HODL will lead to more destruction, I prefer to sell if it has decreased 10-20% because it's the limit I can bear, also don't put all the fund in one coin better to seperately.

That's an interesting take - I think you could HODL any coin if you wanted to, but it may make more sense to HODL only the top coins as you said. And yes, having a diverse portfolio is important to help limit overall risk.

It can minimize the risk if you prefer to hold the top coins since they are the one who are supported more by the traders so whenever the value gets dump for sure there's a bounce back since those supporters and the dev will not want their coins to be devalued nor been left behind by those top competing coins in the market. And if you select to hold much better if we look for the top 10 not the top 100.