There are different types of entrepreneurs, but what they all have in common, besides using accounting software, is the drive for diversification. For those who choose cryptocurrency trading as a form of investment, it is similar to any business because there is no certainty. If you are a beginner in cryptocurrency trading, it’s wise to do some research and weigh your pros and cons before deciding whether it’s right for you. Are you already engaged in cryptocurrency trading? Here are some ways to make the most out of your crypto trading investment.
1. Follow the news
It is easy to get started with cryptocurrency trading. You need to register for an account on Knaken, verify your identity, deposit your funds, and then start trading. But are you sure you know the preparatory work before you start trading? If you haven’t received the right education, you might just be an aggressive bull circling around aimlessly. Various factors influence the direction of cryptocurrency prices. Past performance is also not reliable when looking at future results. When doing your research, make sure you are always looking for the latest news, especially news that could affect cryptocurrency prices. Search for the latest market news from reliable online and offline sources.
2. Trade with a goal
We have learned how important it is to set a goal. You should also consider this when trading in cryptocurrency. You need to be aware of your goal, risk tolerance, and how much you want to invest versus the profit over a certain timeline. Also choose between scalping or day trading and determine why you want to trade in digital currencies. In cryptocurrency trading, despite the profits, there are still losses, and it is a form of trading that is not suitable for everyone. Just like doing your company’s accounting using the best accounting software, you need to understand how much money you need or are willing to lose.
3. Don’t focus on one cryptocurrency
In the cryptocurrency market, you have many options to choose from. Currently, Bitcoin (BTC) still dominates digital currency, but you will find that there are other cryptocurrencies worth exploring. As an entrepreneur, you should know that diversification is essential, and you can do this with crypto as well. You may be active in different businesses and spread your money across other digital currencies. As mentioned earlier, by looking at market news, you can see which ones, apart from BTC, are the best.
4. Avoid FOMO
Fear of Missing Out (FOMO) is a mentality that gets beginners into trouble when trading cryptocurrency. Some are blinded by success stories and rush into something they don’t fully understand. Profit is the only thing they see until they realize that trading involves more than just choosing Yes or No. It is essential to understand the basics and the risks before buying cryptocurrency to trade.
Knaken Cryptohandel B.V. is registered with De Nederlandsche Bank N.V. (DNB) as a provider of crypto services. DNB supervises Knaken Cryptohandel B.V.'s compliance with the Money Laundering and Terrorist Financing (Prevention) Act and the Sanctions Act 1977. Knaken Cryptohandel B.V. is not subject to prudential supervision by DNB or conduct supervision by the AFM. This means that there is no supervision of financial requirements or business risks and there is no specific financial consumer protection.
Investing in crypto-related products involves significant risks.
