Topic: Understanding the Basics of Trading in the Cryptocurrency Market (Read 472 times)

All of them are necessary actually. It's just that strategy is the main talk of the town. They think a good strategy can save them whilst a bad strategy is a sure way of losing money. No doubt, it's true but it would be better to not underestimate other small details because it can add up some percent to our winning rate.

To have lots of experience could mean that we will engage more in the activity. Struggles are normal at the start but we shouldn't focus on it because it will only motivate us to quit easily. It will be difficult if we solo. That is why there are communities that are built to help us and we can also help others if we are now a professional.

I also think developing a strategy is one of factors that affect the success of trading.  But to be able to make the development of strategy effective, we must be knowledgeable and updated with all the information revolving around the pair we are trading.  Knowing the latest news will enable us to design strategy that is in synced with the current events.  So I think developing a strategy is best paired with updated information and knowledge about the venture.

If we aim for a successful trading, then we should have our working strategies to make it possible, not just one but even two or three strategies can be good enough so that if one strategy becomes obsolete, you can use your other strategies that you have mastered already. Although different market condition requires different strategies, but it’s really a must that you have working strategies to rely on everytime you trade in the market.

Who here understands the market now?
I can write several reasons why the price in the market may fall and the same reasons for the price to rise.
The main strategy is that the price of bitcoin will rise in 2024, so if the price of bitcoin drops to 20 thousand again, then I need to buy.

Yes dear, you have rightly said that in order to gain expertise in any field, there are some basic things and basic principles that must be followed, and it is equally important t to understand them. When you choose a line of profession your own, it is important that you have the right information’s and perfect your studies accordingly, define your goals and targets then you are practically involved. Additionally, you do have knowledge about the analysis, about risk management, positions of market trends and how to evaluate your assets in right manner. It can be helpful to practice with virtual or paper trading accounts before risking real money

Among the list, this is the most I agree. Because before you will become profitable in trading, you need to develop your strategy. After you develop, you need to master and practice it.
But before you develop your strategy, for sure you will first have a lot of experience and that is difficult like using a lot of indicators or chart patterns, joining some community about trading that could help you to interact with some traders and discuss different strategies, it will help you to choose yours.

I would like to add some more to this. In trading, you need to have a good control over your emotions. This is a crucial thing. Because even after proper analysis of the market and opening a trade, you could still fall prey to your emotions. Once you take a decision based on your emotion, all of your analysis will be in vain. So you need to learn risk management if you really want to have a control over your emotion. Risk management will help you take the right decision, and it will help you to create a strong mindset. Diversify your portfolio and make more than one trades. Don't put all your assets in one trade because if the market act against you, you will lose all your assets in one go. Avoid FOMOs, because there isn't any perfect time to start in crypto. The moment you start, your journey begins. And if you get the proper knowledge and apply them in your trading strategy, you can make profits at any time. But it totally depends on your skills. Also, while we are talking about skills, it's important to keep learning. The crypto market is always evolving. So in order to keep up with that, we need to learn new thing and adept to them.

Overall, the OP is quite helpful for newbies. I thought I should also add some of my own knowledge that need to be learned.

Yes exactly this is the best thing to realize that which is a good time for you to put money into a selected coin and which coin will be suitable for you so these are the things which a person will realize after enhancing his experience in a selected field. I think getting knowledge is the best thing but knowledge without experience cannot make you wealthy so always tolerate everything what you face at a starting point.

Realizing even a little things matters a lot and sometimes awareness of these little things can become a cause of someone's failure so try to understand, get knowledge and enhance experience these will play a crucial role in the development of your success.

You left some straightforward meaning of this step that, other pre-hand information of the market which will help you to understand it, you also have to shed an eye on the economic sector of Countries which can highly affect the price of these tokens. Such as the USA etc. because if you would have known the current problem the USA is facing which are causing an incline in inflation then you should take them into account and move accordingly in the market.
You mentioned a good point here, i when started crypto, i was doing it by observing the candle and by following my guts. (yeah i know that wrong way) but i was new some what i did is never develop a strategy in fact i started to trade only in one currency such as the Gala, it was like i am started to understand its moves and how and which thing effects it. So i was like totally synchronized with it. And that's now how strategies are made. many people have shown their strategies in this thread. to get more idea of how important a strategy is.
Many newbies have the same issue like they are confused about which exchange they should use and which wallet they should use to hold their BTC for longer periods of time as they do not have technical assistance or knowledge so they blindly follow there nearby crypto manias and most of them are fraud and they will try to scam you.

i really admire your all factors and no wonder they are so necessary for a newbie to follow but still many fail to do so because they take these things lightly and do not want to make slow earnings by following these rules instead they want to take big risks.

It's very important to choose an exchange for trading, because not all exchanges has the same security. I didn't use any platform other than Binance when I trade because there's so much volume in there and this is the most trusted exchange for most traders. Consider this, you are so profitable in trading but you chose the wrong exchange that result of losing all your funds. That's why choosing an exchange matters a lot.

In my opinion, if you have an open position in trading, it's not good to always look at it as long as you set the the TP and SL. Looking always in your position may affect your emotion that's what I have experienced in trading. If you lose a trade or even win a trade always put it in your journal so that you can study and learn something important that you can apply in your next trade.

Trading is a battle of emotions, so if you can’t control the different emotions towards trading, then you will never be successful in this industry. So it’s really the top concern that before you decide to trade, have your emotions stable first, or if you can’t avoid them, at least you have to control them. Otherwise, trading will only fall as a waste of time and money since you can’t even have the very basic in trading.

You’re right on point. All those mentioned by OP are all significant, but experience will always be on top of it. No matter how well you understand all those basics in trading, that will be useless if you still don’t have the required knowledge and skills in trading. But with experience, you will learn a lot of things that will expose yourself on the reality of trading. And that will be your best key to win over the market’s volatility, and makes your trades become successful and profitable.

When investing in crypto, that should be the main thing that every investor should be doing. Knowing how much money they have already invested in crypto will help them determine if they are moving in the direction of profits or losses.

That's another crucial aspect. Not only by staying informed about what is happening in the crypto market, but you should also follow up on the altcoins you invested in on their social media platforms, to know what's their latest moves and plans for their project.

Consistency
Versatility
Emotion Control
Discipline

Here are the few of the key things or behavior on which a certain person should have on the time that they would really be dealing up with this crypto space or market on which dealing with volatile and unpredictable
prices is the main on which you would be able to encounter out. Its just really that right t hat you should really know about the basics because diving into something without having proper preparation and stuffs
could really be resulting into loss of money or would really be caught up yourself into big trouble. We know that there's no such thing about being that perfect trader
but at least making yourself that be sustainable.

Learning could be gained with real dealing or experience which it would really be acquired along the way because there are things which cant really be taught or be read up via theories.

Tracking can be in almost any thing that we do. The common one is for spending in our home, so that we will know if where all the money go and it helps us to save because we can cut some items in the list which are not really that important. We can apply the same thing in our crypto activities.

There is even some who do this in gambling but it's not really advisable because it only makes us chase our loss and gambling should only be taken less seriously. Consistency is important if we are only getting started but once we already eliminate the unnecessary expense and improve the flow of our money, it's fine to not continue recording our activity anymore.

I absolutely agree with what you mentioned OP. Unfortunately, I have seen a multitude of beginners who don’t give a value about knowledge, they end up randomly trading , making wrong decisions and spend more than they earn. Trading isn’t an easy field to earn large money in a brief period, you should gain knowledge and understand the basics of this area before beginning. The internet is actually filled of useful courses and information. Use it intelligently. Also, there is plenty of ways to acquire a good knowledge of trading like, reading books, watching tuto videos to understand to way to analyze chart.

No good knowledge without applying it firsthand. Crypto trading is more than paper and pen or summarizing several key points.
If one doesn't get the right information on how to begin and at such begins, it becomes a problem to keep up. That's how the mistakes are made.
A mentor is always adviced at an initial stage. One who would show the way because they know the way.

There are also strategies that one may need to know inorder to trade right. You wouldn't just want to throw in money you would need for urgent demands in the house. You wouldn't also want to just log in and start trading. The time, the market statistics and current information on trend is one vital point to note.

If you're interested in inviting a friend to join the world of Bitcoin, It’s important to make sure they have a basic understanding of what it is and how it works. You can provide them with articles, videos, or other resources that explain the concept of Bitcoin in an easy-to-understand way. Remember, Bitcoin is a new and innovative technology that can be exciting and rewarding, but it's also important to be cautious and responsible. Make sure to educate your friend about the risks and potential pitfalls of using Bitcoin, and encourage them to use it wisely. Encourage them to continue learning because Bitcoin is a complex technology, and there is always more to learn. Do your investment in the market regularly but, before taking any opportunity or decision, must take into account that you are well aware about the step taken.

Well, getting emotions involved is a huge distraction when it comes to trading. If you find it hard to manage your emotions while trading, then you will never be a reliable and successful trader in the end. That is the reason why a lot of traders never sustained trading for long because they fail to control their emotions especially when the market is suddenly experiencing a crash or a correction that makes the trades difficult to succeed.

If you think you do things beyond your control, then it’s a sign that you will never be good enough in trading. Always know that emotions can be the best enemy in trading, so if you trade with uncontrolled emotions, expect that you will never be successful on your trades. However, trading can be learned as well as emotional management. If you can do that, that will pave way to good decision making as trading requires right decisions especially when there is sudden change of its market condition.