Cryptocurrency is booming now as crypto trading is being counted as a quick way of earning huge money. But it’s not that easy as it seems to be unless you count on a few general points. Read here to know 5 base points before you start your trading in crypto market to stay safe.
Build your crypto portfolio
Crypto currency portfolio is like your back account. This is the basic need of your crypto trading venture. You can build your portfolio with either Bitcoin or Ethereum. Before you make your portfolio please check the currency value of the crypto currency you have selected. Always keep your portfolio diversified so that the risk of the trading can be minimized, especially if you are newbie to this volatile trading market.
Also you should select an authorized and highly active exchange, which you should select by tracking their individual trading volume. Take help of an expert advisor or search via Google.
Don’t start with peanut
Unless you make a portfolio of considerable amount, it may not bring good profit from crypto trading business. Although the word sufficient is a vague terms and the parameter ramie vary from one person to another, at least you should invest 10%-20% of your earning. If you cannot invest one time, you can plan for 2-3 months before investing. Bitcoin is the safest option but you can consider other options of crypto currency if the currency is showing stability on current market.
Don’t make it your only source of income
Crypto currency market is highly volatile and in order to yield profit from this unpredictable market, you need to read the latest updates of the market, especially about Bitcoin and Ethereum. However, unless you are a market pro and you understand the market very well, it is not wise to make crypto trading your sole way of income. Making it a secondary income will help you to churn out better profit because you will not have any hard and fast rule to earn money out of this business. Also stay aware of the scam, frauds, and fake advisors because you may incur heavy loss if you trade wrong.
Think of long term benefits
Keep your 70% crypto currency net worth for long term profit scheme and 30% for short term profit scheme. You can earn well out of short term profit plan but there is risk too. If you face any problem in your short term profit plan, you may recover by your 70% net worth, which will save you from losing huge money in this market.
Stay away from fraud schemes
Do not get involved in quick earning schemes. Always track the success rate or follow the bounty programs launched by crypto currencies before investing in it. This is the best way to assess genuinity of the crypto currency
Allied tips:
- Unless you understand the market, do not involve closed and relatives in this trading
- Check the facility of conversion: before starting of crypto trading check if the crypto currency can be converted into fiat currency
- You may opt for coin mining
- For risk free trading you may join bounty programs of new crypto currencies, and earn coins for safe trading later.
These are the points you need to remember about Crypto trading. Learning new tricks as well as diligent research online about cryptocurrency and related trading can help you to trade safe in this crypto industry.