How to Trade Bitcoins Smartly by Avoiding Common Mistakes

How to Trade Bitcoins Smartly by Avoiding Common Mistakes

If digital currencies represent the future-generation monetary system, then trading goods and services online with a universal currency sounds like an interesting method that could accelerate e-commerce sans the barriers of national currency. Healthy risk-taking and effective risk management are two key elements to successful trading, especially cryptocurrency trading. Bitcoins are by far the most popular and successful cryptocurrency, but crypto trading is a new frontier that brings along new complications. 

Despite Bitcoin’s recent popularity and people’s surging interest to invest in the same, there are certain serious risks involved in crypto trading. Here are some of the common Bitcoin trading risks and ways to avoid them. 

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Bitcoin Trading: Risks and Counter-measures 

RiskIssue Counter-measures
Still a Toddler Bitcoin is still a young technology, i.e., hardly ten years old. Yet to prove its mettle in something big and with haywire changes occurring in its market, there is no clear prediction as to how the Bitcoin industry will evolve in the future.Approach Bitcoin investment with caution and due tenacity. Take the necessary steps to protect the funds and be well prepared for the market’s future.
Quality Supersedes QuantityOvertrading the market leads to a waste of time and money. Try swing trading during strong market trends and automated scalping during stable market trends. Identify the right trading style for the right market conditions.
Volatility and Market FluctuationBitcoin price changes constantly and is unpredictable. It does not guarantee an ROI (return of investment).To prevent the substantial loss, keep vigil over the market. Make small investments that benefit over the long haul. 
Stay NeutralFOMO (fearing of missing out) and fear of losing force merchants to indulge in either greedy buying or panic selling. Be objective and keep a steady head. Do not believe in media-exaggerated market trends. Do proper research and trade when the right time presents itself (i.e., a peaking hype).
Avoid Excessive LeverageTraders use too much leverage that could lead to forced liquidation and loss of the entire principal amount.Use moderate leverage (an L 3X is astute than L 100x) that spikes the gains and cushions from a hurtful trade. Longer the trade lesser the leverage.
Counterparty ExposureBitcoin transactions are irreversible and come with a certain level of counterparty risk. Exchanging via private keys on insecure platforms leads to transactions getting hacked.Expand investments across many exchanges not in just one; when not trading, never leave/store coins on an exchange; and use only up to 30% of position to trade.
Investing Beyond Reach Since Bitcoin suffers from a volatile market, has no central authority, and is backed up by zero physical collateral, traders can lose all their investments in case of huge investments. Approach Bitcoin investments with caution. Take small steps and make short-term investments to sustain in the long run.
Vulnerable Trading PlatformsBitcoin is Internet-based and prone to cyberattacks. Cryptojacking and counterfeit Bitcoin tokens are all over the Web. Keep in mind the hacks of Binance (41 million) and Bithumb (19 million).Though there are no 100%-secure trading platforms, checkout for investment forums that have a solid reputation (their track record and security systems). 
Use Personal JudgmentThe Internet is crawling with many fake crypto pundits, ones with limited knowledge and zero professional trading experience giving out ill-intentioned advice.Do not listen to anybody and everybody. Understand and learn the latest market trends and decide accordingly. If needed, take help from legitimate crypto analysts like Plan B. 
Taming the BullGiven Bitcoin’s current fluctuating market situation, traders may feel apprehensive about investing in cryptocurrencies for now.Look at the Bitcoin bull-run pattern. Purchasing at the bottom yields substantial profits for those staying updated on the crypto market. Missing out on the upcoming bull run(price prediction of $100,000 per BTC) could prove a costly mistake.

 

Balance Risks and Opportunities

Cryptocurrency offers a wide array of opportunities for enthusiastic businesspeople. At the same time, it also presents considerable risks to those new to the industry. Anything that is Internet-based is inherently risky, and the Bitcoin industry is no exception. In fact, even experts in this field are not spared and sometimes fail as amply proved by the multimillion-dollar hacks that rear their ugly heads now and then. To successfully navigate the murky crypto waters, one needs to strike a balance between the impulse to make quick money and not to lose what they already have. For trade & buy Bitcoin there are many platforms available in the market. There are also many platforms that can surely give you profit from Bitcoin or other cryptocurrencies in whichever you invested your money. That platform is also called as Bitcoin Robot or Trading Robot. So you need to choose one from the Best Bitcoin Robots to avoid scams and fraudulent. You can trade or invest in Bitcoin with less risk from one of the most trusted automated trading platforms – the Bitcoin Revolution. It will make you to earn a good profit from this innovative trading platform. For further more details you can check the Bitcoin Revolution Review.

The post How to Trade Bitcoins Smartly by Avoiding Common Mistakes appeared first on Knnit.

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