Or don’t lose them within first hours of trading.
A lot of buzz and madness is around crypto coins lately. All this because of the Bitcoin price surge in 2017. Many people are deciding to join the crypto gold rush and jumping in. Because it look’s like easy, free money – but it’s not! Crypto coins markets are heavily speculated, in many cases, there is no any «legit» reason for price surge or fall. It’s just how markets works and traders are making money or losing by buying and selling crypto coins.
There is the endless list of «To do» and «Not to do» in crypto trades and I will try to write some general rules that should help you keep afloat in the crypto coins trades.
Never buy a coin just because it has been advised in the exchange chat (trollbox). Most of those user’s trying to unload on you their bag of coins.
Never buy a crypto coin that has 100% – 1000% price increase per 24h. Most of the time you will buy just at the peak of «Pump&Dump» and you will not be able to recover even one-third of your original investment.
Never buy a coin that has 0-5 BTC trade volume, unless you think it can rise in the future and you are ready to hold that coin for months or even years in order to get a profit. Coins with low trading volume are hard to sell and usually has very little buy orders also.
Don’t think that you are smarter than other’s if you see that prices are different up to 20% between different exchanges. As this can be for multiple reasons. It can be «Forked» wallet’s and exchange never updated coin wallet, so it is no use anywhere else but in that exchange. You will not be able to withdraw that coin as wallet will be in Maintenance mode forever. Or it can be because of crazy price swings and in the time that you will send coin from one exchange to another it can go down and you lose a big chunk of your money. There are also many Bots that trading between exchanges, it’s called Arbitrage Bots. They are checking prices between exchanges and making money from price difference where it is possible. So as a human user you are much slower to spot and execute good/real deals. So stay away from it 🙂
Always check buy orders. Many times coins have very little buy order list. As you can see in the picture there is almost no support down to 1 Satoshi. So you will not be able to sell at the price that is indicated. Unless you place sell order at your specified price and someone will buy it.
Take little profit. Now when the price of BTC is above $10,000, 0.01BTC profit means you made $100 or more. Little profit is better than a big loss. So don’t be greedy and make your way up by taking little by little.
Stay away from Margin Trading. This is fastest and probably guaranteed way to lose your money. Markets moving so rapidly with swings up to 50% or more, that your open positions will be closed faster than you will send extra BTC to support yours opened Long or Short position.
Always check exchange reputation. There is so many of them that is hard to pick one these days. Especially when most decent exchanges have paused registrations of the new users. Bad exchange can hurt you in many ways, from never letting you withdraw your coins to takin insane 50% withdrawal charges. I will write some reviews about exchanges pretty soon.
If you buying crypto coins as a long-term investment, always send them to your private wallet. Do not keep them in exchanges, as exchanges tend to get hacked. Make strong 30 symbols or more password for your private wallet and backup your wallet in at least 2 drives and/or memory sticks.
Disclaimer - Cryptocurrencies are highly volatile markets. We do not encourage people to buy it if you do do it at your own risk. There are many success stories about people getting rich from buying it, but there is even more about people losing it all. We do not promote any coins if we post about the coin is just because we find it interesting and we like to share it with you.