Truth be told, cryptocurrencies, especially Bitcoin, are the hottest market right now. Bitcoin is, in fact, hotter than stock, oil, and even gold trading at this point. One of the reasons why Bitcoin is still going to dominate the markets is because cryptocurrencies are based on the blockchain technology which provides transactions without a central exchange. Bitcoin is one of the most lucrative digital assets that you can trade in and make a good profit. However, like every market, there are traps and obstacles that could potentially ruin your chances of making a profit in cryptocurrency trading.
How to Make Profit in Crypto Trade
Here are a few tips on how to get started and help you avoid traps on trading platforms.
- Learn the ropes
It is highly recommended that you first get a basic knowledge about cryptocurrency trading before you make your initial deal on the trading platform. There are many resources you can turn to for digital assets trading knowledge. Take the time to learn about relevant topics such as the Candles-stick Chart, Order Book and other order charts as well as Spread and Depth Charts. A good place to start your journey of crypto trading knowledge is profit-trade.com, an online trading and education center with valuable information on cryptocurrencies.
- Understand platform fees and rules
Crypto trading is done via a broker or platform. Each platform has its own rules and fees. Some platforms will charge a percentage of each trade you make while others charge for each income and payout transaction that you complete. Make sure that you understand the platform’s rules before using it.
- Learn Technical Analysis
You cannot predict future prices of cryptocurrencies. Don’t even try to predict based on hunches or guesswork. You can however use technical analysis based on information from the past and current trends to improve your chances of making a successful trade. There are many technical analysis tools that you can rely on to learn a cryptocurrency’s past behavior.
- Minimize Risks Through Distribution
You can minimize possible risks by distributing your trading money into different digital assets. Don’t put all your money in one cryptocurrency as prices are bound to change every now and then. Let the strongest crypto have the biggest share of your wallet. For instance, 40 percent of your wallet can be in Bitcoin, 25% in Ethereum, 20% in Ripple, and 15% in Litecoin. Avoid selling everything in each part at once.
- Tracking For Better Trade and Profit
You can only succeed in crypto trading by staying updated on the latest cryptocurrency news, key indicators, and ranking. Keep track of these factors every day. This will help you make the right decisions. At the very least, keep checking pricing trends and other interesting indicators including Compound Monthly Growth Rate (CMGR) and Inflation Graph.
Finally, just like Forex, stock, and other forms of trading, nothing is 100% certain in cryptocurrency trading. So don’t trade with money that you cannot afford to lose. Don’t invest your entire savings on trading. However, with practice, training, and persistence, you’ll soon be making a profit from your trading activities.