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What dos and don’ts should you know about when trading cryptocurrencies for the first time?

trading cryptocurrencies

Technology and IT have become central to how we live our lives. It is fair to say that most of us would be lost without a smartphone to stay connected with on the move or smart devices in our homes to make things easier. IT and tech are even more important in our working lives. From emails to video conferencing, websites, and VoIP networks, no modern business now could run successfully without being tech-savvy.

One hot tech trend that has been hitting the headlines is cryptocurrency. This digital form of money has grown massively since Bitcoin was launched as the world’s first digital coin in 2009. As cryptocurrencies have become more established and familiar, many people now trade them in the same way as other assets like stocks or FX.

If you fancy getting involved with crypto trading as a novice, it is wise to do some research first. Reading this Bitcoin beginner’s guide at the AskTraders website is an excellent first move. AskTraders is a reputable source of information for new crypto traders and can help you find out all you need to know before starting to trade.

But what are some of the most common dos and don’ts for beginner traders to find out about right now?

New crypto trader dos

Cryptocurrencies can seem daunting due to the tech involved. If you are not overly tech-literate, delving into how Blockchain works might seem complex. The great news for crypto traders, though, is that you do not need a high level of tech knowledge to get started.

The first thing to do is find a trustworthy online broker. Look for a regulated broker that offers great customer support, a good choice of coins to trade, and helpful information for new traders. After you have signed up with a reputable broker, be sure to trade on a Demo Account first. It is the same as trading for real – but with fake money. Starting out in this way helps you get used to trading crypto and how the platform works without risking real money.

What else should new crypto investors be doing?

You also need to draw up a trading plan at this point. It will help you trade logically, rationally and make it easier to find good opportunities to consider. A good crypto trading plan should contain what coins you plan to trade, how you will find trades to enter, how much you will put on each transaction, and at what point you will exit a trade.

Another thing a new crypto trader should do is constantly learn new things and look to more experienced traders for help. This will help you build up your trading knowledge over time and make you a better trader. There are many ways to do this – from checking out crypto trading websites to chatting with more experienced crypto traders online or checking the news for what the market is doing.

Beginning crypto trader don’ts

Now we know what you should be doing; it is also worth pointing out what you should not do when trading popular cryptocurrencies. For starters, don’t be surprised at how volatile this market can be. This volatility is why you should also not forget to monitor your open trades closely and not delay if you think you need to act.

Another thing any novice crypto investor should not do is let losing trades run too long. If a trade is not going to go your way, do not hang on for too long before exiting. It is also crucial to remember to use stop losses when setting up a trade. These will automatically exit the trade for you at the level you pre-define and can help with trade management.

The last two significant don’ts for new traders are based on emotions and money management. It is vital not to risk too much of your balance on one trade because you could be wiped out if it goes against you. In addition, you should not get too down about losing a trade and rush back into the market to recover your losses.

New crypto trader’s dos and don’ts

If you are new to trading cryptocurrencies, the good news is that you can have a positive experience and potentially make some money. The key is to learn what you should avoid and what you should be doing before starting to invest.