5 Tips On How To Become A Good Crypto Trader

With the current low to negative interest rates and correspondingly narrow returns on investments, do you also feel the need to take the investment into your own hands in order to participate in the long-term rising stock and Bitcoin market quotations?

In principle, this desire is understandable and also to be welcomed, as active investments regularly beat passive ones. However, the prerequisite for this is that a number of basic conditions are met.

Nowadays, it is easier than ever before to enter into active stock or cryptocurrency exchange trading – so-called trading. With a few clicks of the mouse you can open a trading account with a broker or direct bank of your choice. After completing the formalities, such as personal identification or confirmation of the ability to trade futures, all you need to do is capitalize the trading account. Of course you can do this conveniently by credit card. The thresholds for starting trading are truly low.

With such easy access, some investors might get the impression that if it is so easy to trade in the markets, it is correspondingly easy to make profits in the markets. And then the first position is opened and the game begins.

Very quickly, an ambitious newcomer to the crypto exchange floor will then discover that the boards that mean the world are much more slippery than the simple entry would suggest. As a consequence, instead of the hoped-for gains, the more unexpected losses often occur and failure begins.

Now you might say that this is what happens when you get involved with the big players. But the reasons for failure on the crypto market are not so much that not only beginners but also seasoned professionals compete against you on the trading floor. The choice of broker or direct bank is also less decisive for Bitcoin market success. Rather, the key to success lies in the person of the trader himself. Five conditions must be fulfilled in order to provide the basis for successful active cryptocurrency exchange trading.

1. Make yourself aware of why you are trading crypto!

Many investors and traders simply start trading. This means that most of them simply swim with the market. This is not really worth mentioning, but the consequence is that trading in the markets is aimless and therefore directionless. In trading, however, the path is not the goal. So set yourself concrete goals that you want to achieve within a defined period of time. On the one hand, this gives you the opportunity to regularly monitor the achievement of your goals and, on the other hand, a fixed goal is a good motivator to continue on the path you have chosen.

2. Concentrate on fixed strategies!

If traders and investors do not know their goal, it is of course impossible to take the right path to it. Then this and that is tried out; the main thing is to be in the market. However, it is better if you concentrate on a handful of promising strategies and markets and follow and apply them consistently. In addition, traders with a clear strategy also have a control of success and concrete starting points to develop their own skills.

3. Master technology and products!

There are tools for every activity. So also in trading. For investors and traders the trading platform is the access to the markets. But often traders do not know their trading platform well enough. An entry is always feasible – but what about a manual exit from a position? Unfortunately not all traders can answer this simple question at first go. So master all aspects of your trading platform! In addition, there is a wide range of financial products for active trading, which are designed differently and can, but must, be used differently. Of course, you must also be able to control how these are constructed.

4. Limit your risk!

A lot helps a lot. Many investors and traders forget that bitcoin exchange is not a one-way street. Where profits are made, losses are incurred on the other side. In order to survive in the cryptocurrency market business in the long term, however, you must limit your risk per position and in total. A single loss trade must not jeopardize your overall performance, a series of losses must not make you unable to act. Therefore, limit your risk without any ifs and buts – a fixed percentage of 1 percent of the trading account has proven itself in practice.

5. Make yourself aware of your strengths and weaknesses!

Crypto trading is highly individual activity. Here, every investor is called upon to be aware of where his strengths and weaknesses lie and to gear his trading accordingly. Successful traders know where their personal limits and preferences lie. Not everyone is made for ultra-fast intra-day scalping. But not everyone is a patient investor who holds a cryptocurrency for months or years. It is up to you to find your niche here. Once you have found it, the answers to the first four points almost come naturally.

Active crypto or stock market trading can open up opportunities for you that you may have always dreamed of. But it can also take you far away from them. Dealing with the five points should help you to take your first steps on the Bitcoin exchange floor towards success.

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