Advice for Beginners in the Crypto World
If you are new to the crypto world, here are some important tips to help you trade wisely and avoid big mistakes:
1. Do not always invest your full money – If your capital is small (for example, under 200,000), catching one big upward trend in a year is enough.
2. Learn before risking real money – You cannot earn more than your understanding. First, practice with a demo account. You can fail many times in practice, but one mistake in real trading can cause a big loss.
3. Review your trades – After trading, check if the cryptocurrency met your expectations. Regularly review and evaluate your assets.
4. Be careful with good news – If you don’t sell on the same day of good news, sell on the next day’s high opening. Good news often hides risks.
5. Do not be greedy – Good projects can be held for the long term, but always sell at a high point.
6. Plan for holidays and events – Reduce your position or stay out a week before major holidays. Enter again two days before the holiday ends, as markets often rise afterward.
7. Exit after big red candles – If you see a large bearish candlestick on the daily chart, exit the next day unless it is at a low-volume bottom.
8. Notice volume at the bottom – If trading volume increases at the bottom, it may signal a turning point.
9. Keep cash for long-term trading – For medium or long-term, keep cash, sell when the price rises, and buy back when it falls. Rolling operations work best.
10. Focus on active coins for short-term – In short-term trading, watch trading volume and chart patterns. Trade active and volatile coins, not inactive ones.
11. Understand declines and rebounds – A slow decline leads to a slow rebound. A fast decline often leads to a fast rebound.
12. Compare market and coins – Some coins move differently from the market because strong players are involved. Coins that simply follow the market usually lack strong players.
