According to statistics, over 300 million people possess cryptocurrencies, with the figure likely to rise as I write this piece.
However, like stocks and commodities, it is also not a paradise where everything goes perfectly as planned. There are dangers involved, and they play an important role in your path, and anyone who wishes to reap long-term advantages must devise tactics that make trading both enjoyable and safe.
So what are the things you should know before going all-in?
Know your trading style
Don't be that guy who saw some crazy trading movies and decided to become a millionaire in one night; instead, focus on your inner strength and look within yourself to see what type of trader you want to be. Because, first and foremost, trading is stressful, and second, you can lose money quickly. So it is very important that you should know what you're doing before fully committing to it.
Now, there are three types of trading: day trading (where you can make daily trades), swing trading (where you can make trades every week or sometimes longer), and investing (where you put your money for the long term).
So it is entirely up to you to select a trading style whichever you like.
Now the second most important thing was
Understand the psychology of the market
'Cut your losses and celebrate your profits,' is a well-known trading quote. and it does appear to be simple. However, trading as a business or a career is time-consuming. And while you may find it difficult to separate emotions from investing or trading over time.
So, in order to become a successful trader, you must understand that allowing emotions to influence investment decisions is never a good idea. You should learn about how psychology works in trading to help you make your decision.
What is the stability status?
There is little difficulty in attempting to find stability in the crypto market. Let me use bitcoin as an example. Bitcoin reached an all-time high of 65k towards the end of April last year, after soaring to 40k in January last year.
And now, as of the beginning of 2022, the crypto market is extremely volatile, bitcoin which was around 60k last year, hovering around $29,000. From all of this, you can easily deduce how stable the crypto market is.
So, before you enter the market, you should have a thorough understanding of what you're getting into; this is the most volatile market and this can go straight or sideways.
Social media is not worthy of your time
Don't let social media enter your mind.
Remember, Reddit and Twitter can either be your best friend or your worst enemy. Remember, whoever you follow, whoever you like, nearly 100% of the people posting charts on Twitter have already placed their positions, made their purchases, and are now seeking to manipulate the market in the direction they desire. To avoid all of this, conduct your own research and develop your own strategy after performing technical and fundamental analysis on a coin.
Everything, every post you read, every trade you make, every coin you look for, everything you do in terms of trading. Question everything, including yourself, and then redefine it. this is the last thing you should do before entering this market.
These are a few points that you should consider before going all-in into crypto trading.