Here are a few tips for trading Bitcoin.
1. Set strong passwords
Everyone knows that there are hackers in the world who break everything and steal everything. And everyone is sure that something definitely will not happen to them. Protect the entrance to the wallet and to your exchange account with long, strong passwords. Install a password manager, write down the generated passwords on a piece of paper, and hide it away. From now on, the password protects not just your photos in VK, but hard-earned money!
2. Configure 2FA verification
Cryptocurrency exchanges enable two-factor verification. During the configuration of this verification method, the exchange will give you a secret key. Save it – take a screenshot, print it on a piece of paper. In case of loss of access to Google Authenticator on your Smartphone, you can only restore access to the exchange using this backup key.
3. Verify on exchanges
Yes, you will need to highlight your personal data, indicate the address of residence, and take a selfie with a passport. But verification is a guarantee that your money will be safe. Bitcoin Trader Login also allows you to verify your identity and regain access to your account if you lose passwords or lose Google Authenticator.
4. Do not buy “on highs”
The first major mistake of novice traders is the purchase “on highs”. Seeing that the currency has gone up, the newcomer is in a hurry to jump into the last carriage and grabs a coin at a sky-high price. However, growth is followed by a recession. How soon the coin will return to its previous position and whether it breaks the upper mark is unknown.
5. Do not panic
The second major beginner mistake is Panic Selling. Seeing that the coin suddenly rolled down and is not going to stop, the newcomer freaks out and merges it before it’s too late. If a coin was bought at a lower price, then it’s okay – the trader takes profits. If panic selling happened after the purchase “on high”, then this is a tragedy – you have to fix the losses.
6. Do not be greedy
If you wait a moment, and your coin has flown up, that is, shot, do not be greedy, and do not wait for it to reach a peak and begin to fall. Strictly determine your threshold, after which throw off a coin and take profits. 20-30% is already good. When the coin falls, you can re-purchase and withdraw another 10-15%, but re-purchase is always a risk. Yes, there is a chance that the first wave of growth will be one more, and more, and more.
7. Just hold it
The best rule in the highly impulsive and emotional cryptocurrency market, where everything is constantly jumping, is to collect the will into a fist and hold a coin until better times. The recent sharp, but a short-term drop in Bitcoin, and with it the entire cryptocurrency market with subsequent panic, once again proved the value of this rule. Know, sooner or later the very moment will happen when you wake up as a millionaire, but for this, it is important to be patient and not to listen to alarmists, foretellers, and skeptics.
8. Automate bidding
There are two main ways to trade on the exchange. The first is to constantly monitor the schedule and manually carry out transactions. This is ineffective on long time frames and even exhausts. The second is to place sales orders at a specific cost. If the price set is in the usual daily range, and the coin is more or less stable, then there is nothing to worry about – during the day the order will work, and you will take your profit.
9. Learn to count
Even if you are a humanist, you still have to make friends with mathematics. The formula “Buy a cue ball cheaper and sell more expensive” does not always work as you want, because in the crypto world every step is accompanied by a commission. Commission for depositing money into the payment system, commission for the purchase of “crypto”, and exchange commission for transactions and withdrawals – as a result, a tidy sum! To save money, carefully study all these numbers, go over various payment systems and exchangers, and develop the best deposit/withdrawal scheme for you.