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Elena Watson
in
Traders Fair
April 29 11:56

3 Rules of Crypto Trading

Crypto trading can be overwhelming, especially if you are new and don't know the "rules" yet. We have compiled 3 rules to help you along your trading journey.
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Crypto trading can be overwhelming, especially if you are new and don't know the "rules" yet. We have compiled 3 rules to help you along your trading journey.
Please note that none of this is investment advice.
Invest at your own risk!
Only invest what you can lose. As soon as your money is converted into cryptocurrency, consider it lost forever. There is absolutely no guarantee you can get it back. Losses don’t simply come from dips in the market; extraordinary factors such as hacks, bugs, and government regulation can mean you’ll never see any of your money again. If you are investing money you can’t afford to lose, you need to take a step back and re-evaluate your current financial situation, because what you’re about to do is an act of desperation.
Always pay attention to Bitcoin.
Most altcoins (every cryptocurrency except Bitcoin) are pegged more closely to Bitcoin than Asian currencies were to the USD during the Asian Financial Crisis. If Bitcoin price spikes drastically, altcoins price can go down as people try to exit altcoins to ride the BTC profits; inversely, if Bitcoin prices fall, altcoin prices can go down, too, as people exit altcoins to exchange back into fiat. The best times for altcoin growth appear when Bitcoin shows organic growth or decline, or remains stagnant in price.
Don’t invest blindy.
Due to the highly speculative nature of the cryptocurrency markets today, a good investor will always do his or her own research in order to take full responsibility for the potential investment outcome. Information coming from even the best investor is, at best, great information, but never a promise, so you can still get burned.