Before You Start Crypto Trading: First Think If It Is Worth Your Time and Money

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Before You Start Crypto Trading: First Think If It Is Worth Your Time and Money Before You Start Crypto Trading: First Think If It Is Worth Your Time and Money Before You Start Crypto Trading: First Think If It Is Worth Your Time and Money Before You Start Crypto Trading  First Think If It Is Worth Your Time and Money
Before You Start Crypto Trading: First Think If It Is Worth Your Time and Money

It is cool to look at the past and see all the mistakes you’ve made. However it is very hard to do right things for the future.

Unless you are fully aware of market trends, understand related businesses and crypto company financials, most likely you will not be able to make profitable trades.

Even professional traders do mistakes and lose money. If you are not one of them or not planning to become one, your best bet would be investing into mutual funds or your own business.

The companies in crypto space do not sell you any guarantees of success. It does not matter if you profit or lose money, the trading firms will receive its fee for each trade anyway.

Since you are considering moving into the crypto market, most likely you are planning to receive a significant return on your investment which should also be better than what you would get buy investing your money into mutual funds (less risky than crypto trades) or even no-risk certificate of deposits where returns are guaranteed.

Interesting? Well, how can you get such earnings? The answer of course is simple and well known: buy low, sell high.

If you do it most of the time you’ll be a successful crypto trader.

Now the first problem comes: how do you know when to buy?

There are probably several methods to do that, we do not debate this here, let’s assume that you know somehow or think you do know. Let’s say you got lucky and the cryptocurrency after you bought it is going up, just as you planned.

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Now another problem comes: when to sell?

After the stock is up 25%, what do you do? Sell now, or wait until it is up 50%, 75%, 100%, 150% or 200%?

Do you listen to investor news and do what everybody else does: selling, buying more, or continue holding the cryptocoins?

If you choose one of the first two options, how much of the quantity you should buy or sell? Or if you hold the coins, are you sure it will continue to go up, or you may end up waiting until the stock price is back to the original and then lose its value resulting in your losses.

The fact is some people in fact do know the answers to those questions most of the time and actually make profit.

The question is, are you as good as those people? Most people are losing money predicting and trying to time the market.

If you’re new to this market and not planning to spend much time on research, probabilities are you will lose. Keep in mind that you will be competing with professional traders, giant players and insiders who profit mostly because many others keep losing. And above what are the chances that you can predict the market? The chances are very slim.

Some may debate: “I had that coins, I sold them when the price was up 25%, but if I did not sell them at that time, now the price would be up 100%. How thoughtless I was when I sold them, if I did not I’d made a lot of money. I have to do this for a second time. It really proves that I can make a lot of money there and it’s easy!”

That is absolutely correct you can make a lot of money, but it is not that easy as it looks.  Let’s assume you did not sell the stock at the time it was up 25%. Then what makes you think you would wait until it is up 100%? You may have sold it when it was up only 35%. Or it may go down several times below 25% increase, you could have thought it was going down forever and sold it even with a lower than 25% profit.

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The bottom line is that it is cool to look at the past and see all the mistakes you’ve made. However it is very hard to do right things for the future. Unless you are fully aware of market trends, understand related businesses and crypto company financials, most likely you will not be able to make profitable trades. Even professional traders do mistakes and lose money. If you are not one of them or not planning to become one, your best bet would be investing into mutual funds or your own business.

Disclaimer

This information is for Learning purposes only. We are indeed not financial mentors. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be the finest for your individual needs and risk tolerance.

Please do your own research.

 

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