10 Rules for Cryptocurrency Traders

The set of the following rules was created by the traders, who actually assess the situation and advance to their goal by the method of their own trial and errors. Everything noted here is suitable for both beginners and professionals. By following these rules you will not only stay afloat, but also earn decently. Here is a list of the basic rules for all who want to sell cryptocurrency should adhere to:

  1. Bitcoin is sacred. You should keep it in the amount of at least 40% in your trade portfolio. With its help, the collapsed items will be bought, which help make your portfolio more resilient to market changes.
  2. You should never enter the market “at a high rate”, investing your entire stock. You should always have an untapped reserve of funds that will help pay off in case of a fall.
  3. Don’t store cryptocurrency on exchanges. Always be guided by the bitter experience of Mt.Gox. If you are going to store tokens during a long-term, immediately transfer them to the official currency client.
  4. Ignore the pumps. If the currency has sharply increased by 50% and more per day, this is a 100% pump. The higher its index, the longer the currency will fall. If you did not have time to buy it in advance, then using the Fibonacci grid, measure at least 50% of the top point. This should be your next purchase zone. To join at once is like slicing the branch on which you are sitting.
  5. The main instrument on the exchanges are limit orders. Do not allow scalping and instant sale of the currency that has suddenly falling in price. This leads to a tangible loss of money.
  6. Forget about the margin. The token market is a place that is unregulated by anyone, depending on a variety of psychological factors and unstable cryptocurrency. This makes it unpredictable. You can instantly lose all your money with a margin.
  7. Making online transactions, the user should be ready to say goodbye to it. As it’s already mentioned in the previous paragraph, this type of activity is not controlled and is not regulated  by anyone, so there will be no one to file a claim as a result. You do it on your own risk.
  8. You should never think that you could earn more. Nobody knows how much a particular currency can grow. Each trader must independently develop rules for themselves that will help fix their profit. You can use a time interval, the achievement of a certain percentage or any other convenient method of calculation. This is a very important aspect. Even if the price sharply increases, do not despair. Most importantly, you are not at a loss.
  9. When using programs for technical analysis, it is necessary to evaluate and view data of different time periods. You can see the 4-hour summary, then read the daily report, and after analyze the 3-day interval. Thus, you can make a more complete picture of the price trend and draw independent conclusions. At last, you can make a final decision.
  10. You should remember that it is not recommended to be subjected to the instinct of the crowd when making operations on the exchanges. This means that if everyone buys, then it is better to sell. If everyone sells, then it is better to buy. If you go into the minus in tokens, then until you sell it, you do not fix the minus. In this situation, it is better to wait until the market returns to the initial price or exceeds it. Then you will be able to return your money or even earn extra amount of funds. However, you should not expect an increase in price, as in this case you can miss the opportunities proposed on the market.
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