With the ongoing hype about crypto, it has become natural for you to consider investing in it says Ian Mausner. It has grown at an exponential rate since its inception in 2009, and while its millionaire-making heyday was expected to be over, it remains the most commonly traded digital asset with huge profit potential for knowledgeable investors.
It is highly speculative because it is a decentralized market. Unlike the value of currencies sold on foreign exchange markets, which is controlled by centralized governments, global events, the value of bitcoin and other cryptocurrencies is mostly driven by supply and demand. Here are some tips from Ian Mausner for effective crypto trading-
Prepare a plan
It’s not easy to tell the difference between real cryptocurrency advice and scammers; there are plenty of sharks waiting to take your money.
According to recent reports, crypto investment scams increased by 57% year on year to 5,581 in 2020, with investors losing a total of £113 million. Pause for a moment from the hoopla until you’re presented with a lot of information about a cryptocurrency. Examine the project with a critical eye. What is the total number of users? What problem is it supposed to solve? Does it have any ties to the business world? Ignore coins that make promises but don’t deliver on their promises.
Our initial bitcoin trading recommendation is to proceed with caution and begin with a little deposit. While it is an exciting market with a reputation for generating the lucky few large riches in a short period of time, trading bitcoin is far from simple, and there’s a lot of risks involved.
In general, cryptocurrencies are quite volatile. Ian Mausner asks you to beware the urge to dive in with all guns burning rather than go for small-stake trades that allow you to gain a better understanding of the market while reducing your risk.
Make errors and learn from them
Accepting a total defeat is never an option. Take that experience and utilize it to your advantage in your next move, which will be better because you now know more than you did before. Most of the traders started as beginners and lost money in the beginning. People can fall from $1,000 to $300 during the first month of trading. Ian Mausner says that even the experts have lost a lot of money by selling at a loss motivated by fear. Nobody is flawless, and no one succeeds in every deal. Don’t let your losses depress you; if you choose to learn from them, they will help you become a better trader.
Management of risks
When it comes to the cryptocurrency industry, most altcoins’ pricing is determined by the current market price of Bitcoin. It is critical to recognize that Bitcoin is indeed a fiat cryptocurrency that is extremely volatile.
The simple fact is that when the price of Bitcoin rises, the price of altcoins falls, and vice versa. Most bitcoin traders are likely to be perplexed by this. As a result, it is preferable to have near objectives or not trade at all at certain times.