Newbie crypto traders rush out of the market the same way they rushed in, not only because they lack the proper knowledge of trading but because they don’t know other key factors that make one a better trader. You can become a millionaire in a few days is the only part they listened to, hence they do not pay attention to trading skills, psychology, diligence, and others.
If you are new to crypto trading and you are looking forward to getting better at it, this article is for you.
To become a successful trader:
1. Invest in knowledge
Investment in knowledge pays the best interest. Knowing your onions before you put a dime into the market is the first thing to consider in order to make a better decision. Newbies should consider learning
Technical Analysis (TA)
This is based on historical price action. TA uses several technical indicators to achieve this, trade volume, moving averages, trend lines, candlesticks, chart patterns, and more are considered. Proper knowledge of technical analysis allows traders to make the best decisions.
Fundamental Analysis (FA)
Economic and financial factors affecting a given asset are considered here to make decisions on what to buy. The knowledge of FA gives an insight into whether a coin is overvalued or undervalued at the current valuation.
However, news and community sentiment are other factors to consider. A newbie crypto trader must keep track of community discussions and news events because this information impacts the market price of cryptocurrencies. CoinMarketAlert keeps its users updated about the latest news and happenings. In addition, having a mentor who can guide you is underrated but it’s best to learn from those who are seasoned in crypto trading.
2. Choose a reliable crypto exchange:
Without choosing a reliable trading platform it will be difficult to make a meaningful profit or you may end up losing your money to hackers. How will you feel when an exchange charges about 20% of your income or profit as their withdrawal fee? Newbies may choose between a centralized, decentralized, or hybrid crypto exchange platform. Notable centralized exchanges are Binance, Coinbase, crypto.com, FTX, Gemini, and others while decentralized exchanges include PancakeSwap, Uniswap, and others.
3. Leverage technology.
Leveraging technology could be one of the ways to get to the moon in crypto space, this involves the use of trading bots. They are software that helps to automate your trading strategies. Bots are more efficient in doing the work on your behalf. Several trading bots are available. Newbies should look out for the best.
4. Diversify your crypto portfolio.
Do not put all your eggs in one basket is a golden rule. Diversifying entails investing in more than one crypto project. Newbies are advised not to invest all their income in a single project, this is a way of creating a balance between risk and reward.
5. Track your portfolio.
With more than 12k cryptocurrencies in existence, keeping an eye on them is a difficult task. The crypto market does not sleep 24/7, to catch up with the latest market movements and development newbies and experienced traders need to give portfolio tracking tools a try. CoinMarketAlert is the best tracking tool for obtaining quick, accurate, and timely information on your cryptocurrency portfolio. with the tool, you can never REKT as your portfolio will be protected appropriately
6. Look out for crypto scams and avoid them at all costs.
In 2021 about $14 billion was stolen from the crypto market. If not sending traders to an earlier grave, crypto scams are one of the things that have made several traders homeless. Here are some of the scams freshmen should look out for and avoid at all costs.
- Pump and dump scam – This has become an order of the day, pump and dump scam refers to a situation whereby a coin or token is over-hyped on social media to lure traders into buying it. Newbie traders rush to buy such coins or tokens thereby causing an increase in their price. Afterward, scammers sell their holdings which then causes a crash in the price of the coin, as a result, others lose their hard-earned money.
- Phishing scam- Here, getting access to crypto wallet private keys is all that scammers want. This makes it possible for them to access funds within the wallet. To prevent this freshmen should Protect their wallet
- Celebrity endorsement- Although endorsement from celebrities is one way to promote a crypto project, lately, people of the dark world are using this medium to steal away people’s money. Fake celebrity endorsement has forced people to invest in worthless crypto projects leading to loss of money.
Long story short, several other scams like Fraudulent initial coin offerings scams, cloud mining scams, giveaway scams, and many others exist. To be saved, traders should protect their wallets, invest only in things they understand by doing research, and stay away from too good to be true projects.
7. Control your emotions.
Controlling one’s emotions is another key to becoming a better trader, it distinguishes successful traders from others. Fear and greed are powerful emotional forces that can cloud a person’s judgment, causing them to make the wrong decisions.