Trading Cryptocurrency

Before going into cryptocurrency trading there are some key things you need to understand.

Beyond buying and selling crypto another thing you need to get yourself familiar with is information and news, for example the reason the market is showing a little red (loss%) is because the major investors/traders in the market (China) are celebrating their New year, a lot of them don’t trade during this period while some even use this period to cash out their earnings. If you always follow news and update you will not fall into the ditch of losses.

To get updates, join crypto communities.

I talked about volatility the other time, one of the best ways to use this as an advantage is buying when the price is down and selling when the price is up. Okay before I explain that I need to talk about volume in trading.

Volume is very important if you want to make a tangible profit while trading. Gone are the days when coin value rise as high as 150%+ in weeks, the highest increase you will see during this period is 10–20%. How does this affect volume? you might want to ask, let’s say I have a coin value of 200USD (70k) a 10% increase will not have a big reflection (220USD, 77K) unlike having 1000USD, a 10% increase on this will make 1100USD (350K will become 385k). So the more you have, the more profit you make. This also goes the other way round when losses come around.

This is where stop-loss come into play, I wrote an article on this some months back you can check it out.

Stop-Loss simply help you to place an order automatically when you are not online based on the values you input. So let’s say I want to sleep and I think the price am seeing might reduce within the next few hours that I will be inactive, with the use of stop-loss I can set the price in such a way that if the price reaches that value my coin is automatically sold off.

Another thing to note here is that you must always trade on exchange site that has this feature. Not all cryptocurrency exchanges have Stop-Loss implemented.

Recommended Exchange sites with Stop-Loss

If you are familiar with cryptocurrencies, this shouldn’t be strange. USDT is a stable coin just like US Dollar, this means the USD value of your coin remains the same when converted to a stable coin. Weeks, months and even years your value converted will still remain the same in USD this help to pull out of the market when needed and also buy up when you think it is reasonable to do so.

Unlike Stop-Loss, a lot of exchanges have this features and with more stable coin flooding in there are more than one stable coin options to pick from but I will always advise sticking with USDT (it’s the most recognized).

My last words will be more like a piece of advice, always be careful of pump groups. There are a lot of groups on telegram parading themselves as pump groups, the thing is they only help the communities with more losses. Most of them buy the coin at a cheap price before time, announce that there will be a pump, thousands of gullible buyers bought the coin only to experience a massive dump by the initial guy who bought it at a very cheap price.

Don’t be greedy, I talked about 10% the other time and some people might be thinking how can that increase my worth, but imagine following the rules and stacking up 10% 10times 😎 100% you say. Always know when to sell and accept the little profit and also know when to take the big decision of buying the bags.

I saw Bittorent(BTT) a few days ago at 14sat, I was contemplating on buying before I slept off only to wake up the next day and find out the coin did a whopping 50% increase….

It could go the other way round too though 😔, the same coin that did 50% increase is already suffering 25% loss for those that bought at its peak. That was why I said always know the time to take profit and the time to buy.

More Advice here

For friends trying to understand all this stuffs you can first check out this post

Finally, this little article is a guide on what worked and still works personally for me in my little trading experience. For more information on Blockchain technology and other related topics, you can reach me on any of my social accounts.

Don’t forget to clap and share these ✌️. Stay Safe trading and fill up the bags 😎.

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