In the previous part of this article, we have talked about doing some research prior to cryptocurrency trading as well as investing based on the value of cryptocurrency. Now, we will continue to talk about the remaining tips for cryptocurrency trading, before you start trading.
Here are the 3 lasts points you must and must not do in cryptocurrency trading
Third, Expand your virtue, minimize your bias
Bitcoin trading is one of the best, Etherium, another digital currency is also good. Everyone knows that the cryptocurrency prices can easily change. Many aspects influence the price of it. This is why investing only in one cryptocurrency is not a good decision.
Just like in point number two, Bitcoin can be going on a downtrend while XRP price keeps on rising.
In the worst scenario, having more than one cryptocurrency to invest in can minimize the damage of a price drop. Of course, there is still the case where both of the cryptocurrencies you invest in are having a price dive.
Fourth, are you a beginner? Well, don’t even dream of day trading.
Short-term buying and selling in cryptocurrency trading is risky.
It’s a better idea to make a long investment in cryptocurrency. Don’t just sell a cryptocurrency simply because it’s too high or because it’s at a low point. There’s an issue about re-evaluating the value of the virtual currency, and whether you have to sell it or buy it.
For novice investors, this strategy is important. The mental ability to trust and lead your analytic skills without being swayed by upward and downward volatility is important in cryptocurrency trading.
Lastly, never invest emotionally in cryptocurrency trading
The result of emotional investment can be a fatal.
You must not make any investment that you’re not sure about. The higher the investor’s stress on investing, the more reason the investor cannot make a rational decision.
Also do not invest too much. Investing a burdensome amount of money in virtual currencies also increases the likelihood of emotional response from investors rather than rational.