5 things you need to know before trading crypto

[Slow death]

HODL

We’d say that 99% of successful crypto investors and traders are massive proponents of HODLing. To HODL is to hold on to your coins, even when the market dips rather than sell up and cash out. HODLing generally sees you achieve a much better result in the long run!

Just think of those poor sods who sold their Bitcoin just before the price soared to their highest heights in December 2017 – ouch.. HODLing is almost always the way to go – rather wait out bear markets and make an informed decision when it comes to ridding yourself of a digital asset.

I commented on this in a past post, Hold is very good, but people should know time to sell their coins. Let's look at the case of people who bought altcoins in December 2017, if they are holding their altcoins from December 2017 until today, then they will only be accumulating large losses, Neo in December 2017 reached $130 and today is below $13.

I think psychological factor is really the key to the success of traders.

There was a day when I was trading and I forgot to put Stop - Loss and the price dropped a lot and the result was that I had a lot of losses, after that all my trade went wrong, I had to stop and relax. the psychological factor has a big influence on trade

[AliMan]

definitely only invest what you can afford to lose. I'm glad that HODLing is working for you - I mean, it is a proven strategy. Diversifying a portfolio (like yours is) is also important.

Holding works when you are dealing with coins that are worth holding, but there are some coins that you have to risk and use to trade in a short time before they dump because once they dump, you may never get that opportunity again to withdraw from them as the value would have been too low.

It is very necessary to diversify because I don’t think we will make it that much if we rely on a particular altcoin, except maybe bitcoin that has covered it all, but it is a very wise thing to do when we share our money into coins that we can be sure will give profit yield in the future so that when a coin is yet to rise, the other one we diversify into can rise and give us the profit on investment with them, but we have to do a very good research in choosing this action of diversifying into many projects.

Diversifying on a legit on several projects can be tough and difficult, since we're still having serious struggles to face on wards. That can be more challenging if you didn't have enough capital to cover the possible losses that we're about to have once we got involved seriously with trading. Furthermore, it needs a decisive ability so that we may focus on a certain asset to buy and trade in the future of our potential profit gains. You can eventually determine which of the factors we need to have before trading, just choose one of them to avoid uncertainties.

[Visbay]

We cannot avoid unexpected changes in digital market but nothing is hundred percent random either. Bitcoin make abrupt changes but anyone with experience and knowledge can spot them. It would be better if he deals directly with bitcoin. He should hold some of it too. In my opinion, bitcoin should be the first choice of all investors. Risk management and mitigation strategies are a must with new coins.

If we are about to invest in cryptocurrency, agree with you that let's have Bitcoin in our wallet, this should be our priority as this is the King of crypto, it is dominance over others and for a decade  still its number one. Other things to consider is to ask yourself first, are you aiming for short term or long term, as this has been very important, as not all altcoins are good to hold in long term and not all good to hold in short term, doing research, checking the team is really important as well.

I don't think that only 5 things we need to know before trading process since many of us have our own perspective like strategies and techniques that we need to consider. Yes, bitcoin is the best choice bit there are a lot of crypto currency have a potential and can give a good and huge profit in the future.

Of course, trading is so wide so learning only 5 things won’t be enough better if you become an expert one you must make a plan and fix your strategies before trading. Learning is the best thing for a trader you should limit your amount and get Knowledge. A trader must be patient and never lose your hopes if the market falls just buy as much as you can.

[jostorres]

As for diversifying your portfolio, I don't think that's really necessary if you have full knowledge of Bitcoin and investing in it alone. As long as you understand everything about Bitcoin and the risks that are involved you won't really have much problem with it. Moreover altcoins hardly brings much profit as BTC, and most of them don't go up when Bitcoin is down, they usually follow the direction of Bitcoin.

But, I'm really against your idea, it's still good, everyone has what works best for them. Some of us don't really value altcoins, and there are those that values it. So, if you value them, you can still go for it and diversify your portfolio. But, remember no altcoin will be good for long term holding. Simply, altcoins are here for trading or else for short term investments.

As for investments, that's for sure that anyone that wants to invest in cryptocurrency should invest what they can afford to risk. These crypto assets are volatile and you can lose your money within a short time.

Talking of altcoins that will not be good for long term, I don’t think that we should generalize all altcoins for that.

There are some altcoins that as long as bitcoin exist, they will also exist, and those coins are the likes of Ethereum and some utility token, and also don’t forget that without exchanges, since we are yet to start using decentralized exchanges which I really don’t see people using, there will always be centralized exchanges like binance that will continue to keep up to expectation which you also know that they all have their utility token, so some of these altcoins will still stand with bitcoin in the future, juts that they will be very few and if I am to continue holding any altcoin after the next altcoins season, it will be Ethereum and any other utility token like Binance BNB.

[marcous]

I mostly agree just, for the time being, I don't dare to hold. considering that Hold is currently compared to hold in 2017 is very different. Most coins held in 2018-2019 are difficult to recover. I don't know, but I feel more comfortable as a fast/day trader. The point is we should have a take profit target or a cut loss target as a percentage. we can see Ethereum prices rose fantastically in 2017. however, when down and until now the price is still relatively low price I guess. and indeed every job has risks and in the crypto world the risk of loss is undeniable.

[Bezobraznike]

I mostly agree just, for the time being, I don't dare to hold. considering that Hold is currently compared to hold in 2017 is very different. Most coins held in 2018-2019 are difficult to recover. I don't know, but I feel more comfortable as a fast/day trader. The point is we should have a take profit target or a cut loss target as a percentage. we can see Ethereum prices rose fantastically in 2017. however, when down and until now the price is still relatively low price I guess. and indeed every job has risks and in the crypto world the risk of loss is undeniable.

   Why do you compare now and 2017, you can try to compare 2011 and now, and you can calculate how much profit
they made with holding. I think that saving some Bitcoins for the future is very important, with some other alt-coins
as well. And we need to be ready to hold 5+ years! With all the ups and downs along the way we need to be strong
and survive.
   Early adopters had the same fears and doubts, some people quit but some didn't. They are rewarded now, and in
future I believe who ever holds crypto-currencies will be rewarded for that.

[Yamifoud]

Additional to what OP and other say's,
*Never expect instant returns
*never tried to make loans just to funds in trading
*Expect market change and tend to be contented of what you've got
*prepare for possible losses

Everything can happen around, only we have to prepare ourselves for all the changes occurs. We live in a roller coaster a-like market, tend to control our emotions by then for we aren't be falling into FUD/FOMO. We can't rely upon the future of our trades on the other hand, though listening to other's advice is good but we have to make our own decision as well, a thing we should have to master and need attention.

[SquallLeonhart]

Diversifying on a legit on several projects can be tough and difficult, since we're still having serious struggles to face on wards. That can be more challenging if you didn't have enough capital to cover the possible losses that we're about to have once we got involved seriously with trading. Furthermore, it needs a decisive ability so that we may focus on a certain asset to buy and trade in the future of our potential profit gains. You can eventually determine which of the factors we need to have before trading, just choose one of them to avoid uncertainties.

Now is even very much discouraging to diversify into other coin as the ones that we have diversified into even after the through research that we did on them before buying them have mostly failed all of us, and I think that when talking of diversification now, people are finding it too confusing to really know the right project because it is not that easy to spot anyone out talk less of having the one that we can use for trading and this may be responsible for the reason why bitcoin has been the main dominant of all these coins in the market for now.

To trade any coin now, I think that bitcoin should still be the only coin that should be traded in other to have any profit form the effort or time that we have dedicated to trading. It would be worst to waste money and time on a bad project.

[Hamphser]

5 things is still not enough. Real traders need to have a strong mentality and always be alert, never too out of their discipline.
I think psychological factor is really the key to the success of traders. I had failed trades many times until I was determined to follow the plan and always kept a stable mentality when making transactions, the results were clearly different.

I think the guide is mostly centered more on a newbie where the basics must be followed and after that they might make their own decisions about trading just like what you did because you learn so much in trading alone with a lot of losses you still managed to carry it all along.

FOMO and FUD is the hardest.

And why is that?

[wxa7115]

definitely only invest what you can afford to lose. I'm glad that HODLing is working for you - I mean, it is a proven strategy. Diversifying a portfolio (like yours is) is also important.

Holding works when you are dealing with coins that are worth holding, but there are some coins that you have to risk and use to trade in a short time before they dump because once they dump, you may never get that opportunity again to withdraw from them as the value would have been too low.

This is a simple subject but one that many do not really seem to fully understand, many think that holding is a great strategy and it is but only if you apply it to the right assets, there are very few coins in this market worth holding for the long term and yet I see many newbies holding all kind of altcoins in their wallets and instead of selling them when they go up in value or when they begin to crash they keep holding them thinking those coins have a future.

But we know the truth, most of the coins in the market will at some point crash and never recover or will completely disappear and all of those holding those coins will regret the day they decided to hold those coins.