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Are you gambling on the exchanges Are you trying to “beat the market” and make some money? Cryptocurrencies are a great way to get “a few extras” in addition. With a little luck, you can earn thousands of euros a month. But first you have to educate yourself and adopt a new way of thinking.
1. Get to know the market
Before you start trading in cryptocurrencies, find out about them. Read about their history, follow the news and spend time studying past and present charts.
If you want to invest in a new cryptocurrency, first get information about its users. What people use it? What do they buy for a given currency? Don’t get carried away crowd madness.
2. Have a plan
Imagine you are building a house. You have no plans from the architect, a static assessment and you have no idea how much the bricks, cement, tiles, scaffolding will cost you… What do you think the house will look like when you finish the construction?
When investing in cryptocurrencies, always calculate how much money you can lose. If you buy BTC for euros or dollars, consider this money lost. Take it as it should ceased to exist. It will help you to be less stressed if the course does not follow your ideas.
If you invest a certain amount of money, you should be clear about what profit you want to make and how much more you are willing to lose.
It is even more important never to trade without a stop loss (so-called Stop Loss). You will secure your trades so that they do not end up in a high loss.
3. Be patient
Having a plan is one thing, sticking to it is another. The patience what BTC brings. You will often be tempted to switch to plan B (the so-called bullshit plan). In the end, however, you will lose more money this way than if you did nothing at all.
BTC is relatively volatile, but in the long run it essentially increases its value. If you don’t trade daily, your best strategy will probably be to sit on your coins. Years… The only exception may be a sudden political change in Europe in which BTC is outlawed. In this case, it is wise to sell your coins, wait for the situation to calm down and then buy them for cheaper ones.
4. Don’t know! You don’t have a crystal ball
No one can reliably predict short-term changes in the market rate. Don’t try. Selling before a big event and buying for less after it may not always pay off.
“I have never known a person who would be able to regularly predict market developments.
Actually, I don’t know anyone who knows a person who can do it.” Burtom Malkiel from the book ,, Random Walk Down Wall Street“
Burton further explains:
“My lesson on divination is this: Not only is it impossible to guess when is the right time to shop, but you also never know when to sell. If you want to anticipate market development, you have to hit twice! ”
To try buy cheap a sell dearly is risky.
5. Get rid of emotions on the stock market
All right, ignore all the other points, but please do this one TAKE SERIOUSLY!
The cryptomen market is still volatile and cruel. It’s not easy to get rid of emotions when your investment falls faster than Felix Baumgartner. You only need to get to “this state” once and all your plans and security measures are gone. Then you are well on your way to losing everything. It’s like a snowball. Your business will get worse and worse.
When you see red from top to bottom, just close the exchange page and go after your friends. Thinking about bad deals only makes you more stressed and will definitely not help you rationally assess the situation.
You can’t avoid emotions from the beginning, but remember – the first time you lose everything, it will free you from fear and the next time you won’t be so easily torn down. It is not for nothing that it is said that one learns best from one’s own mistakes.
Watch out for emotions when trading!
6. Internet and social networks
It never hurts to meet people who are engaged in cryptocurrencies. Communicating on social networks and forums will broaden your horizons, help you find better ways to trade, and possibly gain access to more confidential market information.
