Although trading is difficult, it can also be profitable and it can be profitable for you, too- but if you're new to trading and only know the basics, trading can be tough as you are competing for profits against more experienced people. If you're stuck trying to trade or want some new tips to try out, you'll want to read the text below.
Just like with gambling, do not trade more than you can afford to lose. Although trading can be profitable and easy money, it is also a little bit risky and you can sometimes lose a lot of your money. Apply the same rules in gambling in trading, like cutting losses, and you will be fine with trading; some of the most profitable cryptocurrencies to trade can be very volatile.
If you don't know what you're doing, stop. Even if you only make a little bit of money doing what you know, stick with it until you can prove otherwise another method is more profitable and you are truly making more from it. As cryptocurrencies are very volatile, if you make a wrong step you could lose hundreds of dollars and you might never get those dollars back.
Never store all of your money on an exchange, try to only keep the money you need to trade and nothing more on the exchange, and withdraw all of your profits as quickly as possible. If an exchange is hacked, the exchange is most times not liable for the damages that are caused, or they might only give you a small portion of stolen funds ( I.e Bitfinex- Bitfinex gave users who had stolen funds tokens that could later be exchanged back into bitcoin. The value of tokens fell sharply and most people only got a little bit of their original funds back). Although many exchanges claim to be completely safe and have the latest technology to keep your cryptocurrency safe, anything is hack able and you don't want to take that risk.
If it seems too good to be true, it probably is. If you see a coin spiking in price or a good pattern to invest in, don't buy any of it. Don't buy into patterns that seem too good to be true or into an exchange that offers insane amounts of free money as a deposit bonus- chances are your money will be stuck in the exchange because of some kind of rule the exchange has set up. Make sure you are putting your funds into a good and legit exchange that has trust in the community and you should be just fine in terms of your money.
Exchanges
- When it comes down on make sure you only keep coins there which you use for trading. Other coins should be sent to your own wallet, because after so many exchanges got hacked, there is never security as to how long you can trade on a certain exchange.
- Stick to the main (larger) exchanges, again there is never a guarantee but avoiding exchanges who hide their identity; Yobit, C-Cex etc. will only give you a headache.
- Trade in top 50 altcoins @coinmarketcap.com, smaller coins are often scams are overvalued projects (not all, but still).
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