We all know just how volatile trading crypto can be, and we’re all looking for ways to maximize our earnings.
It can be stressful when you’re constantly trying to stay one step ahead of the game and the markets, trying to identify which coins are going to give you a huge boost and which are going to be dead weight but don’t lose hope.
No one can predict with absolute certainty what the stocks are going to do on any given day, or when an industry figure will decide to make a comment that has a huge impact, but with a little common sense and a lot of preparation, you can make sure that your losses (and headaches) are minimized and your gains are maximized.
So, how can you save your money and time and avoid losing out while trading crypto? We can’t predict the future for you, but what we can do is give you a few tools to help you minimize the extent to which your boat is rocked in these choppy waters.
Here are a few tips to help you.
1. Do Your Research
Let’s start off with a point that is unquestionably simple but undeniably important. Now that cryptocurrency is more mainstream than it has ever been, not to mention easier to get into, more and more people are making the jump.
However, what that means is that a lot of people are diving in without making any effort to learn how deep the pool is. You’re going to be seeing more and more people talking about how they bought crypto stock only to have it lose all its value the next day.
These people will tell you that trading crypto is a bad decision and that they wouldn’t do it again.
Our question to those people is: did you do any research at all? Or did you just see that Bitcoin prices were up last month and decide that you wanted a piece of that?
Whether you’re trading on the best-known cryptocurrencies or taking a gamble on smaller, lesser-known coins, you always need to make sure that you have done your research and identifying possible trends.
Talk to people you know who have been trading for a while and ask for their advice. Don’t just dive in and get upset because it didn’t work out the way you had hoped it would.
2. Find The Right Trading Platform
Following on from the point above: don’t sign up to a crypto trading platform without doing your research. Just like any trading platform, the sites where you buy and sell crypto all have their own terms and they all have their own fees, hidden or not.
Some platforms are only available in certain countries. Some are aimed at beginners, and some are aimed at people who have been trading crypto for years.
If you’re just starting out, you may be enticed by something like PayPal, which has recently decided to get into the crypto game. But what you gain in security and name recognition may result in the loss of other elements, so be sure to do your reading before you commit.
3. Look At Emerging Trends
As we mentioned, crypto is a volatile field and if you don’t keep up, you will find that the conversation has moved on and the trends are moving in a completely different direction.
If you’re serious about crypto trading, then you need to make sure that you are using all the resources available to learn and earn. Take yield farming, for example.
It’s been around for a little while, but it’s really come on in leaps and bounds, popularity-wise, in recent months as more decentralized finance projects started offering governance tokens to get people using their platforms.
It’s gone from a buzzword you might have seen on a forum to something that you need to act on if you want to see any real benefit.
Anyone looking to earn crypto yields needs to make sure that they’re staying on top of the latest developments while using the tools to make their lives easier. Unagii’s DeFi yield platform allows you to focus on your other projects while your yield grows, not to mention knowing that it’s growing smarter.
4. Don’t Let Your Emotions Get The Better Of You
This is one of the oldest rules in the trading book, but it is an important one and it bears repeating. We already mentioned that cryptocurrencies can be volatile, and there’s definitely a white-knuckle ride element that anyone who is in this for the long haul will already be familiar with.
But buying and selling based on panic is a recipe for disaster. That is how you end up with a lot of regrets, wondering why you didn’t cash out at the best time, or why you sold just before the stock skyrocketed.
If you have done your due diligence and your research, then remember that when you’re faced with a difficult choice. On the other hand, if you’ve been doing this for a while and your gut is telling you something, it might be worth listening to.
5. Don’t Take Chances On Cheap Coins
Coming back to another point where research really pays off, but one of the most common mistakes that new crypto traders will make is feeling pressure to snap up cheap coins.
After all, that’s where you might see the biggest returns right? What is currently down, must go…up?
However, unless you genuinely know something that other people don’t, or you have a strategy in mind, there is really no reason why you should shell out your cash on cheap coins that show no sign of gaining more value. But this point does bring us to…
6. Beware Of The Crypto Gurus
Crypto trading is far from the only area where you will find these self-styled experts who promise to have all the secrets to unlock incredible fortune, but they’re certainly are a lot of them here.
It’s partly because cryptocurrency can be tricky to get a handle on if you’re just getting started. Of course, you want someone to tell you the best way to make money, and there are a lot of genuinely helpful blogs and websites out there that have taken the time to make it more accessible.
And it’s partly a result of the pandemic, as a lot of people have noticed that there are more people online than usual who are in need of financial assistance, and they’ve decided to take advantage of them.
So, how do you spot a crypto guru that is going to make big promises then vanish with your money? What sets them apart from a resource that is actually going to help you?
Well, one of the biggest tell-tale clues that someone isn’t on the level is when they tell you to invest in something specific. They’re telling you that this coin that you’ve never heard of is the one that you need to buy up, right now.
The other best way to avoid getting scammed is to, once again, do your research. Ask around and see if anyone has dealt with them before, or if they have a different opinion on that coin which you’re thinking about investing in.