Topic: 5 things you need to know before trading crypto - page 5. (Read 758 times)

You didn't mention the most important quality you need to have
Patience: don't rush into any trades and you have to have lots of patience to sometimes know when to continue a trade and when to abandon it and move on, many people has lost funds because of impatience and I happen to be one of them, I rushed to sell too early because I didn't have the patience to wait for the trade to mature, sometimes it could be that you bought a token and it dips immediately and you know that it's almost certain that it would rise back but impatience could make you sell low and move to another trade.

For HODL only suitable for coins that are stable enough or can be said for coins that are in 1-50 coinmarketcap rankings, the rest if you choose to HODL will lead to more destruction, I prefer to sell if it has decreased 10-20% because it's the limit I can bear, also don't put all the fund in one coin better to seperately.

Yeah, dyor ( do your research) is such a big thing that a startup trader must know and do , choosing a wrong coin in trading must be the most wrong thing to do, dont be fooled by their whitepaper , sometimes reading their whitepaper is not enough. After researching try to trade a little bit to gain experience step by step.

All of the things mentioned in the OP are true, and I also have a similar opinion. Trading is not just buying coins at low prices and
selling coins at high prices, but there are some rules that are must be run like investing money that we can afford to lose, do not
be fanatical about one coin, do technical analysis and fundamental analysis to see the movement of coins in the market, and most
importantly do not become panic traders. Those are some basic rules that need to be known before starting trading, I suggest not
to break the rules, This is in order to gain profit in trading and avoid losses.

FOMO and FUD is the hardest. You may not even engage in trading but just investing crypto for holding coins but you will always think of losing money when prices drops and bear market continues for years.  A friend, a holder who had kept his coins for years since 2015 tried to update his wallet and took profit because of FUD. You may find yourself in such situation during bear market. If the price of BTC rise so high, you wouldn't really think of the riches to lose after that.

I agree with all the things that you have provided.
It is totally good to make own research about a certain investment or cryptocurrency and take note having enough knowledge will help you to avoid big losses.
Make sure you will only invest the amount that you are not afraid to lose.
I am also a holder but most of my holding is top rank cryptocurrencies just like bitcoin, ethereum, and ripple. it is totally good to hold if we experience bear market and do not do panic selling if you see rapid falling down of the price.
I always remember that quote "Don’t put all your eggs in one basket" and actually my money is separate in different cryptocurrencies but the 50% of that is in bitcoin.
Using any kind of trading tool will totally help you to become a better trader and lastly, keep on learning until you become a professional trader.

I just want to add for the list is learn first the fundamentals of trading. Before engaging in trading you must have gain an experience first so that you can realize what is the do's and don't also it wouldn't hard for you to deal with problems. Always remember that set aside our emotion because this will be only a hindrances in our trade. I like the idea of diversifying our trade to avoid losing all of our funds, just like what other said "don't put all the eggs in one basket". Remember as well that invest only the money that you can afford to lose.

^ Definitely right and I am also using these trading tools to make my trading activity easier or less hassle-free. Just like using Gunbot for Autobot trading, you can set when the buying point and selling point no need to monitor the market. And next is the portfolio tracker like blockfolio, which is you can track the bitcoin price and other coins that you had while in travel. On the other hand, I don't like etoro trading platform because it seems like they are feeding their traders either into a trap or potential benefits by allowing a user to copy the works to their professional traders.

Also poor for those who bought at highest price and keep holding until today to just find their asset has down more than 50%.

Holding is good but holding it is useless IF you don't know when to buy and when to sell.

This point is important to me,
I will invest when there is cold money or the results of a bounty and Airdrop campaign, I know that investing is risky so I have to be willing to lose whatever I experience, when I experience losses I will not be angry or stressed because my money invests money from bounties. it's cold money, so there's no need to force borrowing or anything that makes you complacent by investing.

Hmmm nice list. I honestly though at first HODLing was a joke and well, the joke punched me back in the face. DYOR and investing what you can lose are the top 2 for me though, especially DYOR. Without it, its like fighting a war without a gun. I'd also advise brushing up on your trading skills though since it is before trading crypto, id guess thats already a given.

Agree to those points above but these are the things i do want to add up.

1. Read and understand on what you are getting into. Cryptocurrency is quite a broad space.
2. Learn trading basics and coins would be traded.
3. Be keen on reacting either FOMO or FUD.

The best one is that only invest on the amount you can afford to lose as always.

The world of cryptoassets can seem incredibly confusing to new traders. We get it – we’ve all been there. Even experienced crypto traders make mistakes from time to time. Successful crypto trading is all about being prepared before you do anything – that’s where we come in. We’ve compiled a guide of all the things you need to know before trading crypto.

https://www.youtube.com/watch?v=RQtvpNYtLfw


Do Your Own Research (DYOR)

DYOR or Do Your Own Research is a super common term within the crypto community. DYOR is pretty self-explanatory, but serves a reminder to always investigate coins before you buy them or start trading with them.

There are tons of resources online for you to start with. From cryptocurrency subreddits to Youtube, Quora, Twitter and BitcoinTalk forums, you’ll honestly never run out of new things to learn. Starting to trade crypto is a personal decision, but you can make sure that you’re guided well and you have a wealth of knowledge at your side.

Invest what you’re willing to lose

This point is utterly crucial. Never invest more money than you are willing to lose. That’s just a bad idea. Taking loans, maxing out credit cards, or even just trading outside of what you’re comfortable with and can afford, is a recipe for disaster.

Only ever invest what you’re willing to lose. There is always a risk to crypto trading, no matter how well you’ve researched a coin, so always be prepared for a negative outcome.

HODL

We’d say that 99% of successful crypto investors and traders are massive proponents of HODLing. To HODL is to hold on to your coins, even when the market dips rather than sell up and cash out. HODLing generally sees you achieve a much better result in the long run!

Just think of those poor sods who sold their Bitcoin just before the price soared to their highest heights in December 2017 – ouch.. HODLing is almost always the way to go – rather wait out bear markets and make an informed decision when it comes to ridding yourself of a digital asset.

Diversify your portfolio

Ever heard the old saying, “Don’t put all your eggs in one basket.”? Yeah, the same applies here. When you first start out, it’s important that you research more than one coin that you’d want to trade with. Don’t spread yourself out too thin, but ultimately you’re likely to have more success trading with two or three coins instead of one. Of course Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH) are all fantastic choices, but also do some research and find out about other altcoins that may work really well for you.

Putting all of your money into one trade, could ultimately result in you losing all of it. If that coin dips you’re in trouble, so rather diversify your trades across a few coins to mitigate your losses!

Overcome Fear, Uncertainty and Doubt (FUD)

One of the most crucial things you need to know before trading crypto, is how to overcome FUD. FUD stands for “Fear, Uncertainty and Doubt” and is a crucial factor in determining whether a crypto trader will be successful or not.

Unfortunately, this one is up to you – overcoming FUD is your own journey. However, what we can say is that you should always listen to your gut and your knowledge, over others. Don’t give into fear-mongering and always do your own research (DYOR) before acting.


https://www.youtube.com/watch?v=ALTY72Qsgzo

Tools for trading

Having read this guide, we hope you now feel comfortable with all of the things you need to know before trading crypto. The 5 key things to remember are: FUD, HODL, Diversification, DYOR, and Investing only what you can lose. Other than that, always remember to stick with your gut and make informed decisions in every aspect of your crypto trading.

eToro is the world’s top social trading platform. Want to find out more? Click here.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.

https://www.etoro.com/blog/market-insights/5-things-you-need-to-know-before-trading-crypto/