If you’ve decided to take your crypto game to the next level and dabble in trading, then this one's for you. While there are considerable risks when trading crypto, there are also plenty of rewards. Best to check in with these top 6 cryptocurrency trading tips for new traders before you dive in and reach your full trading potential.
#6 Stick To Crypto Focused News And Report Origins
Don’t waste your time reading crypto news in mainstream media, it’s more likely to be pushed by a company looking to sell something. Rather stick to crypto focused outlets, like our insightful Oobit blog, that are committed to providing relevant and objective reporting. Know the forex saying “buy the rumour, sell the news”? Well, that applies here too.
As you increase your knowledge, start incorporating financial pieces into your research. Understanding from a technical point of view what is happening in the markets will not only improve your chart interpretation, but also provide valuble insights in the long term.
#5 Learn To Spot Crypto Scams
With over 8,000 altcoins on the market it could be very tempting to invest in the first few that come your way. Ensure that you completely understand the project, the leadership behind it, their values and the problem that they intend on solving before parting ways with your valuable crypto. Learning how to successfully spot scams will give you an invaluable tool when deciphering the worthly altcoins from the duds.
#4 Align Your Trading Strategy To An End Goal
Before you dive into the fast paced world of crypto trading ensure that you have an end goal in mind. Whether this is buying a house, retiring or quitting your job, knowing what the end goal is and aligning it to your trading will make for a smoother ride. Better yet, make short term and long term goals and ensure that both your trading positions and risk management align to this.
#3 Map Out Your Long Term Portfolio
Alongside having short and long term goals, ensure that you also have a clear idea of what you want your long term portfolio to look like. Taking into consideration that the top 20 cryptocurrencies tend to change from year to year, pick a select few top ones that you believe (and have researched) will be there for the long term. When building a long term portfolio also bear in mind the percentage of the portfolio you are willing to give to one altcoin over the other so that at the end of the day your selection is miticulously organised.
Here are a few handy tips on creating a solid long term portfoliio.
#2 Your Profits Are Only That Once You’ve Cashed Out
While fiat currencies are the dominant currency in day to day living, it is important to measure your crypto investments and positions against this. As it is imperative that your trading balance remains in the green, it is important to realise that until the fiat funds reach your bank account, these profits are not yet realised.
And as cashing out your profits is important (look at Mt Gox and Quadriga CX as long term and short term examples) so is being clued up on the tax regulations in your area. Ensure that you are always on top of the laws and avoid any unecessary mistakes and losses once your funds are converted to fiat.
#1 Surround Yourself With Like Minded Traders
There are plenty of forums and social media channels that have specially curated groups for things like discussing crypto trading charts, inside scoops, and sharing trade ideas. Consider this an important component of a successful crypto trading career as you can learn trading tips before they become mainstream (back to the “buy the rumour, sell the news” phrase).
Top 6 Cryptocurrency Trading Tips For New Traders
That concludes our top 6 cryptocurrency trading tips, may they help you build and grow a prosperous crypto portfolio. After doing your research and hopefully receiving a few inside tips from fellow traders, make use of Oobit’s seamless crytpo gateway that allows traders to tap into a wide range of cryptocurrencies with just a credit or debit card.