Is it too Late or too Risky to Start Trading Crypto in March 2021

You are planning to begin trading cryptocurrencies? Perhaps you’ve heard about the recent bitcoin bullrun and you do not want to miss out your share of the cycle. But somehow you feel the market is already saturated, hot and overcrowded.

As if you have no place, or maybe the big wigs have already sliced all the benefits that come with being a cryptocurrency trader. Well let’s have a look at the ins and outs of trading digital assets? Through this, you will definitely find out whether you are too late to get started?

And you will also determine by yourself whether trading cryptocurrencies is that risky for you.

What you have to know is there is never a time when it’s too late to trade any asset. Therefore, if you are planning to dive into cryptocurrencies, the right time is now. But first there are things you have to put into consideration before trading your first cryptocurrency pair.

• What is your trading motive - ask yourself what you are planning to achieve through trading. Analyze your skill set and set benchmarks and milestones. What do you want in each trading milestone? Going into trading without planning could set you up for failure. Having a trading motive allows you to hold on to your trading positions patiently. A statistics conducted by the TradingExperts indicates over 25% of newbie cryptocurrency traders quit within the first three months. Define your motive, and choose a side. Will you be the winner of the quitter?

• Manage your risks - put in place an effective risk management plan. Use it to set stop losses and your stop loss should work regardless if you are making profit or not. You should know cryptocurrencies are extremely volatile and this makes them extremely risky. Don't gamble your hard earned cash by taking unnecessary risky positions.

• Be Confident, be patient - Trading in cryptocurrencies is no get rich quick scheme. Building millions of dollars through trading should take time, wit and patience. You are going to learn new strategies, understand both technical and fundamental analysis as well as learn how to make your own predictions depending on prevailing market conditions.

There is also something I would like to point out as you begin understanding the necessary steps you should take in trading.

The fact you are asking whether it’s too late or too risky to invest in cryptocurrency; is not a good thing, especially when it comes to financial investment. Probably you’ve heard the term FOMO (or the Fear of missing out) and in most cases this sets you up for failure.

This is a dangerous mindset because it forces you to make rush decisions.

It makes you feel disappointed when you hear successful stories of people who invested in Bitcoin early 2010-2012 on when it was just $1 and now have millions of dollars.

You should avoid this disappointment and enter into cryptocurrency trading soberly and confident. Believe in the activities you will embark on and learn the art of trading.

Besides there are mistakes you should avoid once you start trading digital assets. These mistakes are popular and worse at the same time, among newbie traders.

5 Worst Mistakes to Avoid when Trading Cryptocurrencies

Starting with real money

Trading is an art and you should take the time to learn and understand all the tricks. The only way to do that is practicing with virtual funds. Most trading softwares provide a demo account , where users can learn how to open positions, trade pairs and make virtual profit as if they were actually trading. Also note, the demo accounts require no real funds and are provided for free by most trading websites. Take your time. Cryptocurrency trading is here to stay.

High brokerage fees

Choose your trading website wisely. Avoid platforms that charge high fees and the ones that have less liquidity.Platforms that charge you high trading fees will end up slicing a huge portion of your trading funds and therefore reducing your profits.

Not expressing your profits/losses in percentage

Expressing profits/losses as absolute gains is a classic mistake among most newbies. Make it a habit to consider all your trading gains as percentages.This will give you a clear picture of where you are heading to, the improvements you've made and whether to boost your trading strategy.

Failure to carry out fundamental analysis

Create a list of parameters to follow and adhere to when trading a given cryptocurrency. Analysis the past history of the coin (technical indicators) as well as the fundamentals in order to make wise decisions. You can borrow a system of trading from successful professional traders ; or you can customize your own system depending on your proven ability to make use of fundamental indicators.

Pump and Dump Schemes

Avoid traders, social media posts and Telegram posts that coerce you into pump and dump schemes. These schemes are often driven by the appearance of buy/sell signals and some unscrupulous traders announce the existence of a signal. This increases traffic of people using the same single, and oftenly makes the signal weak. Such a signal could work when the group is small and compact ( not more than 15). You can take advantage of such signal calls by using them as indicators and not as actual trading signals.

Conclusion

Begin cryptocurrency journey today. If you are a newbie, you can jumpstart your trading activities using an AI-based platform that ensures optimal efficiency. Join Immediate-edge.io to fast track your bitcoin trading process.

This article does not necessarily reflect the opnions of the editors or the management of EconoTimes