Trading (short term)
When trading with cryptocurrencies, your goal is to buy and sell coins frequently over a short period of time and make small profits regularly. For example, if you buy 100 euros in Bitcoin on Monday and sell it for 120 euros on Tuesday, that is trading. Here are the key things to keep in mind when trading with cryptocurrencies:
Study technical analysis. To be a successful trader, you need to master technical analysis (reading and analyzing charts). Through this, you can learn to detect trends in the price fluctuations of various cryptocurrencies. Instead of looking for the long-term strengths of a coin, it is more important to recognize these trends and use them to make future predictions when trading.Adapt to events. No one can predict the markets with 100% accuracy, so you must be prepared to adapt if market conditions change. If the entire market suddenly turns south, you need to be ready to exit and minimize your losses.Manage your risk. Just like in the previous point, trading is about ensuring that your trades are profitable overall rather than having to make money all the time. Sometimes, you will inevitably make mistakes, and therefore you must use techniques to ensure that you do not take on too much risk. Limiting the amount of money you invest in individual trades and setting stop-loss orders are good ways to protect your investment.Keep a cool head. One of the hardest things to master when trading cryptocurrencies is avoiding getting carried away by the moment. When the markets are rising, some people get swept up and make trades based on emotion instead of research and logic. If you do this, it can lead to significant losses when reality hits.
Overall, it is important to keep your focus on the short term when trading.
