After a long reflection, you have decided to invest in cryptocurrencies. You’ve done research, saved money, read books on trading. The only downside? You don’t know where to start in crypto trading. Here is a short guide that will 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 trust a particular strategy, nothing is ever guaranteed. There is no approach strategy that works every time. Losses are inevitable. However, they can be limited. Start by applying effective risk management in your crypto trading system. This is what will keep you in the game for the long term.
In order to adopt a strategy of risk management adequate, here are some tips that we have developed especially for you:
- Use orders stop-loss and take profit ;
- Only risk 1% of your capital per trade;
- Open trades that have at least a risk-reward ratio of 1:2 or higher.
Starting to trade in the crypto market can be risky. It is extremely important to have a solid risk management strategy in place.
You can start learning trading strategies afterwards. This can be based on reading candlesticks, analyzing technical indicators, or a combination of both.
Crypto: where to start in trading?
If you are new to crypto trading, then the best thing to do is to learn how to apply a risk management on each trade. This will serve to protect your starting 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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The Cointribune editorial team unites its voices to express itself on topics specific to cryptocurrencies, investment, the metaverse and NFTs, while striving to best answer your questions.