Every crisis brings new opportunities. Despite the negative effects of the economic downturn, there are ways to turn it around. A great example of this is benefitting from cryptocurrency trading. Check out the 5 tips we have on trading Bitcoin!
1. Manage your risks
Safety comes first. Trading Bitcoin and other cryptocurrencies can be rewarding both financially and emotionally, but it is important to be cautious. Luckily there are many great tools available to prevent you from making bigger losses than you can handle. One of these tools are trailing stops — they let you predetermine the price or rate at which you wish to stop trading. This brings us to our next tip.
2. Set your budget
It’s a great idea to figure out your trading budget before jumping into the crypto market. You can set your limits and project how much you are willing to invest into the process. Another handy tool here is price alerts — you can stay on top of what’s happening in the cryptocurrency exchange by taking advantage of automatic price updates.
3. Benefit from the knowledge of professionals
If you wish to trade safely but lack the time or knowledge yourself, you can look into mirror trading. This lets you copy the trading patterns of pro traders. You can set the budget beforehand and make an informed choice on the trader you wish to copy based on their trading data. CoinMetro offers a secure and user friendly platform for mirror trading.
4. Keep an eye on trends
Cryptocurrencies are unpredictable. Although there is no formula for projecting the price of crypto assets, staying up to trends can certainly help. Events like Bitcoin halving, bull runs in traditional markets and historical price data can be a useful reference for making strategic decisions.
5. Stay informed on global events
Cryptocurrencies can be affected by a myriad of factors. Global trends and economic actions have proven to play a role in price movements as well. You can stay informed by making use of crypto news sources, podcasts, YouTube streams or our weekly AMA — all of these discuss the latest movements in the crypto market and can help you in making trading decisions.