Everyone in the world now knows what cryptocurrency is and that bitcoin is leading the market. Anybody who does not know about this will do so soon because the world is changing and people, investors, traders are talking about it left, right, and center. Cryptocurrency is electronic or digital money that is not supported by any bank or government.
This is a good thing as you don’t have anyone meddling in your transactions and breaching your privacy. You can protect your crypto account by storing your digital money in a wallet that is on your computer, mobile device, or thumb drive. You should also know that cryptocurrencies are highly volatile, easy to manipulate, and extremely risky.
If you want to trade cryptocurrencies, click here. You have to open your account with any trading platform you trust, for example, Robinhood or Coinbase.
You will find other trading platforms too but for a fresh start, you can trust these platforms and once you have the experience and know-how the crypto market and game works, you can test other platforms as well and make your mark.
These two platforms mentioned above are reliable, famous, and will get your job done. You just have to know how to differentiate between the good and bad in this market.
Now, while trading cryptocurrencies, especially if you are starting fresh, you may have fear or anxiety about crypto trading.
There are some risks involved in this area and there also are some things you should remember and follow so that you can get rid of your fear and can conquer this market, truly. When you know something by heart, it’s easier to work on it and avoid it, rather than suffering huge losses.
1. Don’t Plunk Down Huge Amounts
It means that if you are someone new in this market, you don’t have to invest large amounts of money into either bitcoins or other cryptocurrencies. Doing this is always a big mistake. Since cryptos are highly volatile, you can start with something less and start it slow. Then, gradually, if you see your crypto moving in the upwards direction, you can add up your amount until the position size is completely funded.
2. FOMO Does Not Matter
FOMO (short for fear of missing out) is a scam. How? Watching news talking about the latest trends of cryptocurrencies and people bombarding you with crypto success and how you should be the one investing in this area as well are all good and nice stuff. However, you need to see if you are in the right position to invest. If you have the sufficient capacity to invest more. If you want to buy or sell your cryptos. Don’t sell yourself to the news. What’s working for others may not work for you. So, always look at where you stand, gain proper knowledge on what you are planning to do, and how it will help you achieve your goal. Then, take a step ahead.
3. Diversify Only When It Is Right
Setting clear goals always helps you no matter how afraid or confident you are in your decision. Look if you want to invest more or if that investment is going to drown you. Don’t think emotionally but think and act smartly. To diversify your portfolio and get rid of your fear, talk to experts, investors who are doing good and see how they choose to hold different assets for the long term.
4. Think Long Term
We say that if you sell something, you will suffer a loss. Well, that’s not completely true. If your asset’s value goes down since the day you bought them, this is known as an unrealized loss. Now, when will they be realized? When you sell it for a lesser price than you bought it.
Always remember that many investors choose to enter and exit the game as per the opportunities they get. It does not matter if they will suffer a loss or not. In every game, there are losses that you have to face but the bigger they get, the more problematic it is. So it’s better to suffer a small loss and earn big profits than going the other way round. Don’t think as if you are missing out on anything while moving at your own pace.