You may have read stories of traders making profits every single day with cryptocurrencies. Some of these will be true but the reality is that cryptocurrency trading is difficult and requires a lot of experience.
Every day newcomers to cryptocurrencies head to the trading platforms and lose a ton of money through the mistakes that they make. Often this is good news for experienced traders as cryptocurrency prices rise due to this activity and they make a profit on their previous trades.
There is no reason why you shouldn’t get involved in cryptocurrency trading but learn and practice first before you invest real money. You need to learn everything you can about how cryptocurrency trading works and the cycles that specific cryptos such as Bitcoin go through.
You can setup a demo account with most of the more reputable cryptocurrency exchanges. These demo accounts use real time prices so it is just like real trading. If you make mistakes in your demo account and lose money (not real money) then you can analyze them to see why you made the mistake to avoid it again in the future.
Losing all of your money in a demo account is no big deal because it isn’t real. Just get another demo account and keep practicing. Jumping into a real account and losing hard cash is another story altogether!
To be successful with cryptocurrency trading you need a plan. Just relying on luck will soon see you losing your money. Don’t just follow what everyone else seems to be doing. Do your own research and follow your own hunches.
Create a trading plan for each cryptocurrency you want to trade. Set a low “buy” price and a high “sell” price that you will stick to. This will ensure that you can make the levels of profit that you want.
You have to keep your emotions in check when you are trading cryptocurrencies. Trade on logic rather than emotion. A sudden fall in price for a crypto should not panic you into selling to minimize your losses. You need to predict when the next time the price will rise in line with your trading plan and then sell.