Cryptocurrencies are a popular topic the world over and over again. The most popular one among them, Bitcoin, suffered a huge drop in less than a month. Earlier in May, it hit a price value of around $59,000 for one BTC, but at this particular moment, on 25 May 2023, the price rates are around $37,600 for one Bitcoin.
A few days ago, it was about $34,000, and that’s maybe the lowest price since the beginning of 2023. This market is so unpredictable, because less than a month ago, it seemed like we can really get rich by investing and trading cryptocurrencies. The rise of Bitcoin caused the other currencies to become more attractive than they were before, especially Ethereum and Dogecoin.
Bitcoin trading is on a rise again too. Many experts will say that the best time to invest in something is when the price rates are lower than usual, so you won’t spend a lot right now, but you have a chance for big profits in the near future.
When it comes to BTC, you can always check on the platforms as BitcoinSuperstar, so you can track the activity and plan the next step even better than ever. But, what makes you a great trader? There are a few important steps that you have to learn and adapt, and the rest is for your intuition and decisions based on the current situation.
But before you take any step, you have to learn these things:
1. What can change Bitcoin’s price?
There are many factors that can have a bigger or smaller influence on the price. For example, we all know that the BTC supply is limited, and as time goes by, there will be fewer coins in the blockchain.
Also, when someone on social media or some celebrity talks good or bad about them, their price can also change, because the bad press can have a negative effect on the whole market. Good words, on the other hand, or when someone well-known to the audience is getting interested in this, can result in better price rates too. Also, keep in mind that if cryptocurrencies become too commercial, their value can drop, because they will be the same as the usual money.
But, when they are demanded, the price goes up. In the end, it’s always good to know that even when it seems that there is a pattern in the “behavior”- there is not! You can’t predict anything. You can just hold onto your knowledge and strategy and hope for the best.
2. Know how much you can afford
Setting the limits is a must in every type of investment and trading. You have to plan how much money you can afford to lose because things won’t always go as you planned. The best way you can do this is to monitor the whole process, and stop when the prices are about to fall. You can risk losing a few dollars, even a hundred or thousand, but when it’s a lot more, then it’s not worth it.
Every trusted platform will offer a dashboard where you can track down your activity and see how things are going. The useful tools you can find there will indicate when things are about to change, so you can plan what to do next, and don’t go over the budget you intended for this purpose.
3. Start with small investments and low hopes
There is no place for beginner’s luck when it comes to crypto trading. That’s why you must be smart and start with smaller amounts, and increase them as you gain experience. Probably you’ve already heard this, but the crypto market is very volatile, and you can’t predict what will happen next, so you must keep things low, being aware of all the risks. Start with a small investment, and you will feel when it’s the right time to change the approach or the complete strategy.
4. Always use a digital wallet
A digital wallet is a software solution, piece of hardware, or any other asset that allows you to store your earned and traded Bitcoins, just like you keep your money on the bank account, your regular wallet, or the credit card.
The crypto wallets come in different shapes and solutions, and you are able to choose whether you like a hot or cold wallet. Hot wallets are connected to the Internet all the time, and they are prone to hacker attacks, and cold wallets are physical devices used to store your savings on them. Cold ones are a better solution for a long-term plan.
5. Develop a strategy, but don’t hold onto it all the time
Strategies are there to be changed. We won’t stay too long at this point, explaining the aspects of adapting the strategy to the current situation on the market. It’s pretty important to understand that, and of course, to learn how to turn things to your side, no matter how the situation on the market is going.
6. Don’t get too emotional
It’s good to be excited when things are going better than you planned, but also to be sad and disappointed when everything turns worse than you thought it could be. But, that’s the risk you take when you get into this business. Just like in every situation in life, it’s always better to stay tight on the ground, than to get too excited or too anxious about your decisions. Remember, when the prices drop, they drop everywhere in the world, and every trader is affected by it.
The bottom line
There is no particular way on how to become the best trader in the world. It’s always good to have control over your decisions and behavior, and that’s why you must keep your mind clean and straightforward. Prevent mistakes by avoiding making emotional decisions. It will be easier as time goes by, and who knows – maybe you will be the one who will support the newbies in the future, and share your experience with them.