Basic Principles Before You Trade Crypto
Netgenz - Stock Tips | Crypto trading today has become an activity of buying and selling investment instruments that have the potential to create high returns. Just imagine, a legacy can face an increase in value above 100% in just 24 hours. Who wouldn't be tempted?
However, behind the ability to multiply profits, crypto trading also has the potential for very large losses (high risk, high return). Of course, you don't want to be part of those who lost their lives because of the loss when trading crypto. Therefore, know the 4 bottom principles in crypto trading before you start trading crypto. Also, read How surveysay to make money online.
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1. Use Cold Money
In investing, there is the term cold money. The instant meaning of cold money is money that will not be used shortly. Suppose you earn a million and you don't plan to spend that money within a year. Well, the money can be said as cold money.
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Always use cold money when you want to invest, especially in high-risk investment products. Don't have time to use the money you need every day for crypto trading. Don't look for debt to invest in. 2 things that are serious mistakes.
Using cold cash can minimize the impact of losses that can be obtained from trading crypto. Instead of you pawning a house certificate and losing 90%, don't you sweat it right away.
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2. Asset Diversification
A popular term in the investment world is "don't put your eggs in one basket". This jargon means that you don't have to keep all of your legacy in one investment instrument. If your eggs are put in one basket and if the basket falls, then all the eggs break. So put your eggs in several baskets for more convenience. It's the same with investment.
Heritage diversification is dividing your "egg" into multiple baskets that match your risk profile. For example, You have 100 million in cash and then you have 40 million stocks, 40 million mutual funds, 10 million gold, and 10 million trades.
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For those of you who are seniors in the investment world. Continue to be a large investment effect, until it continues to be a small percentage of diversification. Yes, unless you like high-risk investment types, please allocate a larger percentage on crypto trading.
This content is already broadcast on Kompasiana. com with the title "The 4 Bottom Principles Before You Trade Crypto.
However, for those of you who are new or new to the world of crypto trading, I suggest starting at 5%-10% first. If you can feel it, you can improve it.
3. Play on Coin Big Cap
CryptoCurrency has reached 100 types when this post was written. Each coin has a different personality and value. This sometimes makes new traders confused about which coin to choose.
For the advice of experts, coins that tend to be "comfortable" as newcomer traders' options are coins that have the biggest caps in the crypto coin market. Coins with big caps are a bit more normal, hard to fry, compared to those new, obscure coins. Then which coin is listed as a big cap?
I'm going to list right away:
- Bitcoin (BTC)
- Ethereum (ETH)
- TetherUSD (USDT)
- Cardano (ADA)
- Binance Coin (BNB)
- Ripple (XRP)
- Learn Technical Analysis
Crypto movements are indeed very difficult to predict and there are no predictions whose accuracy level is up to 100%. Don't have time to FOMO or follow people's words, even though he is a celebrity.
Even if a master trader gives you a signal to choose one of the coins, don't be sure! Nowadays, it is very rare for people to share their fortune sincerely. It could be their method of frying crypto to their advantage.
So to stay away from invalid data, it's a good idea to learn a little technical analysis. Through this analysis, we can see the pattern of coin movement so that at least it can help predict the value of the coin in the future.