Understanding the Basics of Trading in the Cryptocurrency Market

[Fatunad]

4. Keep Track of Your Investments: It is important to keep track of your investments in the cryptocurrency market. You can use a spreadsheet or a cryptocurrency tracking app to keep track of your trades and investments.

I am very agree with this and I want this to become a lesson for every trader, especially the new ones because it enables you to keep track of your gains and losses, assess your trading approach, and pinpoint areas for development.
There are a lot of software now to use how to track your investments/trades, like sheets or any platform free or paid. Be consistent with your record-keeping.

Tracking can be in almost any thing that we do. The common one is for spending in our home, so that we will know if where all the money go and it helps us to save because we can cut some items in the list which are not really that important. We can apply the same thing in our crypto activities.

There is even some who do this in gambling but it's not really advisable because it only makes us chase our loss and gambling should only be taken less seriously. Consistency is important if we are only getting started but once we already eliminate the unnecessary expense and improve the flow of our money, it's fine to not continue recording our activity anymore.

Consistency
Versatility
Emotion Control
Discipline

Here are the few of the key things or behavior on which a certain person should have on the time that they would really be dealing up with this crypto space or market on which dealing with volatile and unpredictable
prices is the main on which you would be able to encounter out. Its just really that right t hat you should really know about the basics because diving into something without having proper preparation and stuffs
could really be resulting into loss of money or would really be caught up yourself into big trouble. We know that there's no such thing about being that perfect trader
but at least making yourself that be sustainable.

Learning could be gained with real dealing or experience which it would really be acquired along the way because there are things which cant really be taught or be read up via theories.

[JoyMarsha]

4. Keep Track of Your Investments: It is crucial to preserve track of your investments inside the cryptocurrency market. You can use a spreadsheet or a cryptocurrency monitoring app to keep tune of your trades and investments.

When investing in crypto, that should be the main thing that every investor should be doing. Knowing how much money they have already invested in crypto will help them determine if they are moving in the direction of profits or losses.

5. Stay Informed: Finally, it's far important to stay informed approximately the modern information and tendencies in the cryptocurrency market. This will assist you're making informed decisions approximately whilst to buy and promote, and could assist you live in advance of the curve.

That's another crucial aspect. Not only by staying informed about what is happening in the crypto market, but you should also follow up on the altcoins you invested in on their social media platforms, to know what's their latest moves and plans for their project.

[Finestream]

Easy to say all those things, hard to execute it. Just understanding the market won't help you become a good trader. You need to trade and that's how you gain your experiences. You will make mistakes, but you should learn from the mistakes instead of giving up. Yeah, strategies can help like you said, but there are no "golden" strategy that will help you make guaranteed profits. But yes, it can help you control your losses. As for choosing the right exchange, there are no "perfect" exchanges. All of them are vulnerable to hacks and you should never store your coins there.

You’re right on point. All those mentioned by OP are all significant, but experience will always be on top of it. No matter how well you understand all those basics in trading, that will be useless if you still don’t have the required knowledge and skills in trading. But with experience, you will learn a lot of things that will expose yourself on the reality of trading. And that will be your best key to win over the market’s volatility, and makes your trades become successful and profitable.

[Sanitough]

I agree with all of what you've said.

But it'll be all ruined in just one mistake, and that is when your emotions didn't agree on what you want to do. For me, emotional management is the first thing a trader should master first before proceeding in the world of trading, because it's hard to make a decision when your emotions are taking over always, that would surely mess up every single trade you're going to make.

Trading is a battle of emotions, so if you can’t control the different emotions towards trading, then you will never be successful in this industry. So it’s really the top concern that before you decide to trade, have your emotions stable first, or if you can’t avoid them, at least you have to control them. Otherwise, trading will only fall as a waste of time and money since you can’t even have the very basic in trading.

[jeraldskie11]

3. Choose the Right Exchange: There are many cryptocurrency exchanges obtainable, so it's far vital to pick out the proper one on your wishes. Consider factors like expenses, security, and the sorts of cryptocurrencies presented when selecting an change.

It's very important to choose an exchange for trading, because not all exchanges has the same security. I didn't use any platform other than Binance when I trade because there's so much volume in there and this is the most trusted exchange for most traders. Consider this, you are so profitable in trading but you chose the wrong exchange that result of losing all your funds. That's why choosing an exchange matters a lot.

4. Keep Track of Your Investments: It is crucial to preserve track of your investments inside the cryptocurrency market. You can use a spreadsheet or a cryptocurrency monitoring app to keep tune of your trades and investments.

In my opinion, if you have an open position in trading, it's not good to always look at it as long as you set the the TP and SL. Looking always in your position may affect your emotion that's what I have experienced in trading. If you lose a trade or even win a trade always put it in your journal so that you can study and learn something important that you can apply in your next trade.

[Faisal2202]

1. Understand the Market:

You left some straightforward meaning of this step that, other pre-hand information of the market which will help you to understand it, you also have to shed an eye on the economic sector of Countries which can highly affect the price of these tokens. Such as the USA etc. because if you would have known the current problem the USA is facing which are causing an incline in inflation then you should take them into account and move accordingly in the market.

2. Develop a Strategy:

You mentioned a good point here, i when started crypto, i was doing it by observing the candle and by following my guts. (yeah i know that wrong way) but i was new some what i did is never develop a strategy in fact i started to trade only in one currency such as the Gala, it was like i am started to understand its moves and how and which thing effects it. So i was like totally synchronized with it. And that's now how strategies are made. many people have shown their strategies in this thread. to get more idea of how important a strategy is.

3. Choose the Right Exchange:

Many newbies have the same issue like they are confused about which exchange they should use and which wallet they should use to hold their BTC for longer periods of time as they do not have technical assistance or knowledge so they blindly follow there nearby crypto manias and most of them are fraud and they will try to scam you.

i really admire your all factors and no wonder they are so necessary for a newbie to follow but still many fail to do so because they take these things lightly and do not want to make slow earnings by following these rules instead they want to take big risks.

[AnonBitCoiner]

It has always been said that experience is the best teacher, there's no how you can have a sound trading experience without reflecting in your trading lifestyle, going for trading does not only ends with your investment in bitcoin, you have to understand why, when and how to invest. 

Yes exactly this is the best thing to realize that which is a good time for you to put money into a selected coin and which coin will be suitable for you so these are the things which a person will realize after enhancing his experience in a selected field. I think getting knowledge is the best thing but knowledge without experience cannot make you wealthy so always tolerate everything what you face at a starting point.

Realizing even a little things matters a lot and sometimes awareness of these little things can become a cause of someone's failure so try to understand, get knowledge and enhance experience these will play a crucial role in the development of your success.

[tjtonmoy]

I would like to add some more to this. In trading, you need to have a good control over your emotions. This is a crucial thing. Because even after proper analysis of the market and opening a trade, you could still fall prey to your emotions. Once you take a decision based on your emotion, all of your analysis will be in vain. So you need to learn risk management if you really want to have a control over your emotion. Risk management will help you take the right decision, and it will help you to create a strong mindset. Diversify your portfolio and make more than one trades. Don't put all your assets in one trade because if the market act against you, you will lose all your assets in one go. Avoid FOMOs, because there isn't any perfect time to start in crypto. The moment you start, your journey begins. And if you get the proper knowledge and apply them in your trading strategy, you can make profits at any time. But it totally depends on your skills. Also, while we are talking about skills, it's important to keep learning. The crypto market is always evolving. So in order to keep up with that, we need to learn new thing and adept to them.

Overall, the OP is quite helpful for newbies. I thought I should also add some of my own knowledge that need to be learned.

[GreatArkansas]

(....)
2. Develop a Strategy: Once you apprehend the market, it's far important to develop a buying and selling method. You need to determine on the kinds of cryptocurrencies you want to spend money on and whilst to buy and sell them. You need to additionally decide on your danger tolerance level, as buying and selling inside the cryptocurrency market can be risky.

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

[ItsCrafty]

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

Yes dear, you have rightly said that in order to gain expertise in any field, there are some basic things and basic principles that must be followed, and it is equally important t to understand them. When you choose a line of profession your own, it is important that you have the right information’s and perfect your studies accordingly, define your goals and targets then you are practically involved. Additionally, you do have knowledge about the analysis, about risk management, positions of market trends and how to evaluate your assets in right manner. It can be helpful to practice with virtual or paper trading accounts before risking real money

[safar1980]

Who here understands the market now?
I can write several reasons why the price in the market may fall and the same reasons for the price to rise.
The main strategy is that the price of bitcoin will rise in 2024, so if the price of bitcoin drops to 20 thousand again, then I need to buy.

[Russlenat]

(....)
2. Develop a Strategy: Once you apprehend the market, it's far important to develop a buying and selling method. You need to determine on the kinds of cryptocurrencies you want to spend money on and whilst to buy and sell them. You need to additionally decide on your danger tolerance level, as buying and selling inside the cryptocurrency market can be risky.

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

If we aim for a successful trading, then we should have our working strategies to make it possible, not just one but even two or three strategies can be good enough so that if one strategy becomes obsolete, you can use your other strategies that you have mastered already. Although different market condition requires different strategies, but it’s really a must that you have working strategies to rely on everytime you trade in the market.

[BitcoinPanther]

(....)
2. Develop a Strategy: Once you apprehend the market, it's far important to develop a buying and selling method. You need to determine on the kinds of cryptocurrencies you want to spend money on and whilst to buy and sell them. You need to additionally decide on your danger tolerance level, as buying and selling inside the cryptocurrency market can be risky.

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

I also think developing a strategy is one of factors that affect the success of trading.  But to be able to make the development of strategy effective, we must be knowledgeable and updated with all the information revolving around the pair we are trading.  Knowing the latest news will enable us to design strategy that is in synced with the current events.  So I think developing a strategy is best paired with updated information and knowledge about the venture.

[justdimin]

(....)
2. Develop a Strategy: Once you apprehend the market, it's far important to develop a buying and selling method. You need to determine on the kinds of cryptocurrencies you want to spend money on and whilst to buy and sell them. You need to additionally decide on your danger tolerance level, as buying and selling inside the cryptocurrency market can be risky.

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

All of them are necessary actually. It's just that strategy is the main talk of the town. They think a good strategy can save them whilst a bad strategy is a sure way of losing money. No doubt, it's true but it would be better to not underestimate other small details because it can add up some percent to our winning rate.

To have lots of experience could mean that we will engage more in the activity. Struggles are normal at the start but we shouldn't focus on it because it will only motivate us to quit easily. It will be difficult if we solo. That is why there are communities that are built to help us and we can also help others if we are now a professional.