Cryptocurrencies have become increasingly popular over the past decade. Crypto trading can be a great source to generate passive income. However, before your start trading crypto there are a few things you must consider:
- Trading Platform: Crypto trading platform or cryptocurrency exchange is the most important component of crypto trading. Make sure you start trading with a cryptocurrency exchange that not only offers the best rates but also features and most importantly secure. It is also recommended that you always trade with trading platforms that are compliant with the local regulations.
- Intra-day or Long term: You must decide your trading style and goals. Intra-day is not recommended for those starting out because the cryptocurrency markets are highly volatile which makes daily crypto trading a very risky affair. Therefore, it is only for experienced players. However, you can purchase and trade crypto for short-term and also take long-term positions.
- Not To Park Big Amounts On Exchange Wallets: If you are into crypto trading, don’t store large amounts of tokens on exchange wallets. It is recommended that you store your crypto offline on ledger wallets for better security. Exchange wallets can be compromised and you may lose funds. Exchange hacks are not uncommon.
- Follow The Market: A great way to become a successful cryptocurrency investor is to stay updated with what’s happening in the cryptocurrency industry. Prices of even the top tokens by market cap are highly responsive to events related to crypto.
- Diversify Your Investments: Don’t put all your eggs in one basket. You must mitigate risks and increase your opportunities by investing in various different cryptocurrencies. However, a proper due diligence before investing is a must. Do not invest in coins that are not listed on popular exchanges and have very low trading volume.
Cryptocurrencies are no doubt one of the most profitable asset classes. Following these crypto trading tips can help you become a successful investor.