Bitcoin is still going strong, and many people are flocking into the crypto sphere of trading. There is no great philosophy behind doing it as it is somewhat similar to traditional stock trading. But, it would be best if you didn’t rush into it headfirst. First, you need to read what we have to tell you about these four things you should know about Bitcoin trading.
Bitcoin has been on the market for more than a decade, but in recent years it spurred the interest of many people. This is no surprise, as it is possible to earn money on BTC and similar cryptocurrencies. Just take a look at 2019 when BTC jumped from $3,130 in February to $13,800 in June of the same year. Easy money was on the table for those who were in the right place at the right time. It is no wonder that we have many more people interested in crypto trading. The hype surrounding it is pushing people to invest.
The 2008 financial crisis is not forgotten just yet, and because of it, young investors and millennials lost a bit of faith in traditional trading schemes and banks. This opinion opened the door for BTC to become a thing of interest for these age groups. According to a study conducted by Bankrate, more than 40% of millennials plan to invest in BTC in the future, which is a staggering number.
The technology advanced far enough, so this switch from standard trading to crypto is made seamless. Only a few years ago, there was much more stigma surrounding it. Despite the fact it is accessible today, you should read this article before you start investing.
Table of Contents
Risk Management
You need to risk a bit to enter the Bitcoin race, but you need to know how and why to do it. If your goal is to be profitable, this is the sill you need to master. Entries and exits are essential, but they’re not all there is to trading. To manage your BTC portfolio properly, you need to know at all moments how much of a risk is any trade, and how much do you need to push it. This is not something you’re born with, but rather something you learn in the process. People who do not fully understand the risk of BTC trading end up broke sooner than they earn anything.
If you haven’t put your finger on risk management, the best move you can make is to take everything slowly. Please take a little piece of your portfolio and put it on Bitcoin, and wait for the crumbs to turn into bread. Trading crypto is not an easy feat, don’t allow for the hype to push you to quick and irrational investments to make yourself broke in an attempt to be a microwave millionaire.
Don’t Take Advice From Unverified Sources
The Internet is full of people who made money out of cryptocurrencies, and some of them eager to share their knowledge and experience. There’s nothing wrong with taking advice from people like this. They are present on social media platforms, and it could benefit you if you take a piece of advice from them or steal part of the formula. All is fair in love and war. But, most people who are merely starting with crypto can tell the difference from people who do know things and those who are selling bags with air. It is the sad truth that people who just started with BTC are learning from people who are also at the beginning. What’s even worse, some of them do not know this.
If you look up to someone for your trading decisions, and they’re not doing it the right way themselves or are even trying to scam you in the process, you’re halfway down to bankruptcy. People who are giving you advice should hold responsibility for your doing on the crypto market. If you fail, and you know they won’t be there to back you up, do not take their word for anything.
BTC is Not a Safe Investment
If anyone tells you otherwise, they’re trying to fool you. If you are inexperienced in dealing with crypto, you should take baby steps once you decide to invest. Buying random stocks on the regular stock market is one thing, and you most likely won’t lose it quickly and in one go. When you are buying BTC or other cryptocurrencies, there are chances of this happening. When you enter the world of Bitcoin, it is like in a casino – the stakes are high. We can’t tell what you know and what people have been told you but: Cryptocurrencies are not a safe investment. If you decide to partake in BTC trading, make sure you are not putting all of your assets behind it. Start with a small piece of your portfolio, at least until you get accustomed to the surroundings.
Crypto is Not a Quick Fix Into Richness
No one plans to get rich quick in legacy markets, which’s the way it should be. With crypto trading, things are a bit different. Because of all of the hype surrounding it, everyone believes they’re in to make millions in no time, and walks slowly into the sunset of retirement. BTC trading is a new trend, as people from www.theedgesearch.com would tell you, and everyone wants to ride the hype train. It is not going to be that easy; let us tell you the facts straight away. Traders you’ll meet on Twitter are buying Ford Mustang’s, while you, if not careful, will have to sell your car to cover the losses.
Yes, some people got rich in moments on Bitcoin. They are far few in between, and probably had more luck than real knowledge. Many of them later failed to cash in the good days of their trading after missing the chance to sell while the crypto was at the top. You won’t hear these stories as often.
