BASIC PRINCIPLES ON STOCK EXCHANGES
Cryptocurrencies stock exchanges can be a good way to earn up to a salary, and there are people who only make a living from it. It should be noted, however, that trading in cryptocurrencies on stock exchanges involves risk and only invest money that is not necessary for our lives.
Generally speaking, two methods of trading can be used, the first one is day trading, where we buy on the same day and sell on the same day, and the second one is long-term plans, which assume profits only after some time, e.g. several years. I would like to discuss short-term daily investments.
The exchange I can recommend to beginners is the Polish BitBay exchange
When you open an account there, you have your wallet on it right away. We can buy cryptocurrency there for dollars. The BitBay exchange offers Bitcoin, Ethereum, Lisk, Litecoin cryptovalutes. It is one of the safest exchanges in the world.
When trading on the crypto exchange, you cannot give in to the temptation of quick profit, greed. You have to approach the subject cold and with a good plan. You have to change your approach, i.e. not to go the same way as the rest of the people. The point is not to buy currencies when they grow only when they fall, but to sell when they grow. You have to realize your goals in advance, and not count on luck, because a colleague said that something will grow 25$ more, of course counting on luck you can also earn money but you can also lose more.
BASIC PRINCIPLES OF CRYPO TRADING
1. We don’t invest the money we need to live but the money we can lose.
2. We will get acquainted with the rules of a given crypto exchange (commissions, possibilities, etc.).
3. We buy when prices fall (they are in the hole).
4. We sell when they grow without waiting for them to start falling.
5. We realize the goals set in advance
6. Let’s not be greedy, let’s set real sale prices.
7. After the sale we are looking for another cryptocurrency that has just passed the hole.
8. We follow the developments on other stock exchanges around the world, on stock exchanges the same thing usually happens with a delay.
9.We do not panic when the price falls below our purchase you have to wait for them to finally go up.
10. We never buy crypto one when its price reaches its maximum, or local maximum, then it is time to sell.
11. We minimize the risk by buying not one but several different cryptocurrencies
12. We analyze price charts to determine the real selling price – e.g. in the middle of a previous drop.
13. We record everything, i.e. the purchase price, the selling price (a spreadsheet is helpful).
14. We stick to our plan.
Sometimes we fail to meet our daily plans, especially now that cryptic prices are behaving in a slightly unpredictable way. However, as we gain experience, it can get better.
How much to invest it is up to you, but I think it doesn’t make sense if the amount is less than 250$ is an absolute minimum if we want to earn anything and not just have fun. However, for training, we can safely invest a small amount, which we later convert to a higher one to see what would happen if it was bigger. With small amounts you should also reckon with the fact that the profit can reduce the exchange commissions.
The strategy may change depending on the exchange on which we are trading, e.g. Poloniex allows you to trade only cryptocurrencies, which means that there is no possibility to exchange for e.g. dollars, only for other cryptovalots.
Of course there is an exception to every rule, so let’s use common sense and our own sober judgment.
The content of the article is educational and informative in nature, we do not take responsibility for the misguided investments.