A little knowledge can be a dangerous thing. That’s certainly the case when it comes to investing your hard earned money on speculation that might or might not pay off. The media hype that has surrounded Bitcoin since it first appeared on the scene a decade ago has inevitably made it a tempting proposition for those with a little money to invest and a large spirit of adventure. The question, though, is whether trading crypto is something that any beginner can hope to do successfully. Of course, there is no simple answer to that. Everyone has to start somewhere, so the real question should be what steps a beginner needs to take in order to give themselves the best chance of trading crypto and making a profit.
Learn the theory
When you trade stocks and shares, you need to understand about economics but also the companies themselves. In crypto trading, it is a whole different world, and there’s plenty to learn. Sure, an understanding of their fundamental nature of crypto is important, in terms of blockchain, distributed systems and the like. But you will also find that covering the basics of game theory, trade management and risk mitigation will put you in good stead.
Get some virtual assistance
Theory only gets you so far. When you are ready to start trading for real, don’t underestimate the importance of the trading platform. There are plenty to choose from, so take time exploring a few different options. Mobile functionality, dummy accounts, social trading and so on are all nice features, but for the absolute beginners, there’s one thing that counts above all else. If you take a look at Bitcoin Revolution you will see that it offers something called automated trading. Here, the trading robots will assess the indicators, pull news in from online sources and use this data to make trading decisions on your behalf. It doesn’t guarantee success, nothing can do that, but it is a hundred times better than blindly guessing or operating on gut instinct, particularly while you are still learning the ropes.
Look beyond Bitcoin
Bitcoin and crypto tend to become synonymous in the minds of beginners. That’s a big mistake to make, particularly in the current climate. There are plenty of altcoins out there to think about, so critically assess both their performance and what it is they are bringing to the market. For example, one of the major shortcomings of Bitcoin is that there is no simple way of scaling it, and this in itself is a constraining factor in crypto hitting the mainstream. Will the Ethereum update planned for early next year address that issue? If so, expect its value to skyrocket.
Learn from your mistakes
Following the above tactics will help ensure a beginner will not lose his or her shirt in the first week of trading. But that’s not to say success is guaranteed. Even the best traders have failures as well as successes. The key is to keep track of every single trade, and whether it goes well or badly to learn from it. It’s a basic principle of continuous improvement and by taking it to heart, even novices will soon find success and profit.
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