BASIC PRINCIPLES ON THE EXCHANGES
Cryptocurrencies stock exchanges can be a good way to earn a salary, there are also people who make a living from it. It should be noted, however, that trading in cryptocurrencies on the stock exchanges is associated with risk and invest only such money that is not necessary for us to live.
In general, you can use two methods of trading, the first one is daily trading, where you buy on the same day and sell on the same day, the second one is long-term plans, which assume profits only after some time e.g. several years. I would like to discuss short-term daily investments.
The stock exchange I can recommend to beginners is the stock exchange BitBay.
By creating an account there, we have our wallet on it right away. We can buy there cryptocurrencies for diffrent fiat currencies. BitBay Stock Exchange offers cryptov like Bitcoin, Ethereum, Lisk, Litecoin. It is one of the safest stock exchanges in the world.
Trading on the crypto stock exchange , you can not succumb to the temptations of quick profit, greed. You have to approach the subject cold and with a good plan. We need to change our approach, that is not to go the same way as the rest of the people. The point is not to buy currencies when they grow only when they fall, but to sell when they grow. You have to achieve the goals you set in advance, and not count on luck, because your colleague said that something will grow even 100 $ more, of course, hoping for luck you can also earn money, but you can also lose more.
BASIC PRINCIPLES OF TRADE IN CRYPTO
- We don’t invest the money we need for life, we invest only the money we can lose.
- We thoroughly familiarize ourselves with the rules of operation of a given crypto stock exchange (commissions, opportunities, etc.).
- We buy when prices fall (they are in the hole).
- We sell when they grow without waiting for them to start falling.
- We realize predetermined goals such as buying Ethereum at the price of 200$/1 ETH and immediately give the order to sell for 250$/1 ETH.
- Let’s not be greedy, let’s set the real sale prices.
- After the sale we are looking for another crypto that just passed the hole.
- We follow the development of events on other exchanges in the world, on Polish exchanges, as a rule, the same happens with a delay.
- We do not panic when the price drops below our purchase price you have to wait and finally they will go up.
- We never buy crypto when its price reaches its maximum or local maximum, then there is time to sell.
- We minimize the risk by buying not one but several different cryptocurrencies.
- We analyze price charts to determine the real selling price – e.g. in the middle of the previous fall.
- We record everything, i.e. the purchase price and the sale price (a spreadsheet is helpful).
- We stick to our plan.
Sometimes we will not be able to realize our daily plans, especially now when the prices of cryptocurrencies are behaving in a slightly unpredictable way. However, as we gain experience, it can get better and better.
How much to invest is up to you, but I think it doesn’t make sense if the amount is less than 250$ is the absolute minimum if we want to earn anything and not just have fun. However, for training we can safely invest a small amount of money, which we later calculate to be higher to see what would be if it was higher. With small amounts, you should also take into account the fact that the profit may decrease the commissions of the stock exchange.
The strategy may change depending on the exchange we are trading on, e.g. Poloniex allows trading only in cryptocurrencies, i.e. it is not possible to exchange for e.g. dollars, only for other crypto currencies.
Of course, there is an exception to every rule, so let’s use common sense and our own sober judgement.
The content of the article is educational and informative, we are not responsible for the investments made.