10 Things you should know about Crypto Trading

10 Things you should know about Crypto Trading

Are you looking forward to investing in cryptocurrency or do cryptocurrency trading? If yes, then there are a lot of people like you who want to do the same. After all, cryptocurrency is the booming industry that is set to grow over the years. It’s better to partake in it now rather than later on. However, before you do so, you must keep some important things in mind. In this blog post, you’ll get to know about the 10 key points that you must be aware of about crypto trading.

  1. You must build your Cryptocurrency portfolio, which should be basically on Bitcoin or Ethereum. Make sure you diversify your crypto portfolio if you don’t have any clue about what you’re doing.

  2. Invest only 10% to 20% of your salary after paying taxes in cryptocurrency. A few people use the 10% to 20% after they pay all their bills. However, if you opt for the second choice, then you can’t invest as much money. You should invest at least 10% into Ethereum or Bitcoin

  3. No matter how much money you invest in cryptocurrency, you must keep your regular job even if you have attained your financial goal in the digital currency. This way you’ll not be emotionally dependant on the profits that come from your cryptocurrency investments as an income source. Additionally, you’ll not sell your digital currency when you’re in need of cash. From the profit you earn from crypto, you can pay your debts.

  4. Read about cryptocurrency every day. You should learn something new about cryptocurrencies and blockchain daily. You must have the latest knowledge about these things since this arena moves really quickly.

  5. Be around crypto people, but do not ask your friends or family to invest in it or tell them about your investment until and unless you’re comfortable in it. This is because the cryptocurrency industry is extremely volatile with numerous uncertainties. Since cryptocurrency is not a safe investment, you’d not like your friend or family member bitching at you if his/her investment crashes.

  6. Conduct your own research on crypto since there are a lot of manipulations, frauds, hypes, hacking, stealing, and scams in this field. This can lead to a financial loss, which can be avoided if you do your own research.

  7. Stay away from pyramid schemes, MLM, cloud mining, ‘earn interests’ schemes, ponzi schemes like Bitconnect, etc. Make sure you Google about such fraud schemes related to cryptocurrencies.

  8. You need to sell your cryptocurrency for fiat currency if you want cash against it. So, if you have to pay your bills, you need to convert your crypto to fiat. Although some payments can be made in crypto, not all of them accept the digital currency.

  9. You should think about long-term profits instead of short-term ones. Make sure that you don’t trade over 30% of your net worth of cryptocurrency and 70% in the long run. You can really earn more money when you think about

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