Crypto world is difficult to predict. Let’s consider the obvious elephant in the living room here: if you bought a bitcoin in April for the price of whooping $4,000, you would have made a 200% profit right now. Impressive, right?
On the surface, this seems like an easy and convenient way to make some money. What could be simpler than investing into a coin and getting your returns in several months? Still, crypto trading isn’t that elementary. You should take into account constantly changing prices, high stakes, and possible scams.
So here are the steps to consider if you want to trade successfully:
- Use reputable exchanges
As you know, you need exchanges to trade cryptocurrencies. Watch out for phony exchanges. It’s better to use only reputable ones, some of them are Bittrex, Huobi Global, OKEx, HitBTC, or Binance.
You can also go to trading terminals such as Fumgo. It works with most reputed exchanges, you can access them from one interface. Also, it’s safer to use a trading terminal, because it offers two-factor authentication when you sign in.
- Find professionals and follow them
Trading is a job like any other. You should put effort and time to track price movements efficiently and make rapid decisions. It may be difficult without knowing the market well. Do not take advice from people who have never traded but promise to teach you “trade crypto in a week”.
What we advise is to find experienced traders and follow them. Fumgo offers a feature that allows mirroring the traders. By switching it on, you will have your account automatically copying actions of chosen professionals.
- Invest small amounts at first
Take time to practice the craft. Do not rush with big investments, start with small ones to feel the ground first. There is a rule: first, invest the amount of money you wouldn’t regret losing. Practice as much as possible. Only when you become able to earn regularly and feel confident, should you raise the stakes.
- Choose your strategy
Every good trader has their own style. Pick the one that suits you best and stick to it. If you change strategies too often, you won’t be able to determine which one gives you the most satisfying results.
The universal rules are 1) make a certain limited amount of transactions per day; 2) know about Bitcoin`s movements; 3) follow statistics on your transactions to see which strategies work out best for you.
For the third rule, there’s another helpful shortcut. The Fumgo terminal tracks your statistics automatically and shows you the history of all transactions. So you can assess it and learn from your previous results anytime.
- Trading with different currencies to diversify risks
Check out several cryptocurrencies and invest 5–30% of funds in each. The simplest way to keep track of your cryptocurrencies is to use terminals with the interface, where you can compare the rates of your cryptocurrencies in various exchanges and trade. Terminals usually offer subscription plans: Fumgo charges $20 a month but offers a trial week for new subscribers.
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.