After a long reflection, you have decided to invest in cryptocurrencies. You have done research, saved money, read books on trading. The only downside? You don’t know where to start with crypto trading. Here is a short guide to help you take your first steps in trading.
Risk Management: the holy grail of trading?
the risk management is one of the most important things if you want to succeed in crypto trading, especially if you are just starting out. Even if you rely on a particular strategy, there are no guarantees. There is no approach strategy that works every time. Losses are inevitable. However, they can be limited. Start by applying effective risk management to your crypto trading system. This is what will keep you in the game for the long term.
To adopt a strategy of risk management enough, here are some tips we made especially for you:
- Use orders stop-loss and take a profit ;
- Only risk 1% of your capital per trade;
- Open trades with at least a risk-reward ratio of 1:2 or higher.
Starting to trade in the crypto market can be risky. It is very important to have a solid risk management strategy in place.
You can start learning trading strategies afterwards. This can be based on reading candles, analyzing technical indicators, or a combination of the two.
Crypto: where to start trading?
If you are new to crypto trading, then the best thing to do is to learn how to apply a risk management in every trade. This will serve to protect your start-up capital. Then learn how to read technical indicators and candlestick charts to build your cryptocurrency trading strategy. Remember that crypto trading can be very profitable in the long run, if you stay disciplined.
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Cointribune’s editorial team unites their voices to express themselves on topics specific to cryptocurrencies, investments, metaverse and NFTs, while trying to best answer your questions.