Hey Steemians,
I wanted to share a few of the lessons I learned in my first few weeks trading crypto. This isn't investment advice, but rather some points to consider if you are looking into buying crypto yourself.
#1. ZOOM OUT!
When trading, it helps to look at charts in a longer timescale, say '2 hour' or '4 hours instead of just '1 min' or '15 min.'
This helps prevent you from getting too emotional and buying or selling impulsively based on what the market is doing that moment.
#2. Don't Invest What You Can't Afford to Lose
The cryptocurrency market is exceptionally volatile. While it is difficult to lose money in today's crypto market. Many people go all in on crypto without fully understanding that they could lose it all. Transaction fees, transfer fees, and pump and dump schemes are all ways in which an inexperienced trader can lose money fast. Do your research, start small, and enjoy the ride!
#3. Use Twitter and read the news!
The crypto world is very news-driven, and many people who are unable to perform technical analysis on charts will rely on others to make trading signals. Smart people understand this and often circulate rumours to hype up certain coins. Do your research, double-check rumours, and understand that a bit of news is true, it might just increase the price of a coin in the short term.
Here is some great Twitter feeds that you should follow:
https://twitter.com/VentureCoinist
https://twitter.com/crypto_rand
https://twitter.com/CRYPTOBANGer
#4. Don't buy coins in the green! Buy them in the red! (Read this as, "Check your emotions at the door."
If you have done your research, you will know that it is a high-risk move to buy coins that are close to their all-time highs. Tons of people, including myself, have made the mistake of buying a coin thinking it is going to continue to the moon, only to see its value plummet seconds later. Don't get emotional; if you have studied the project behind the coin, you will be more comfortable if you see its price drop.
A cliche policy but good policy is: "buy the dip, sell the news" translated, buy low sell high. If you find yourself in a losing position, consider holding onto those coins until they rise again.
#5. It pays to refer friends to crypto!
Currently, two of the most popular websites for getting started in crypto is Coinbase and Binance. Both of these websites have referral links that you can send to your family and friends which reward you for attracting new business.
These are mine, but feel free to generate your own you want to send some to your friends.
https://www.coinbase.com/join/5a32f9c6eb53cc015dc8bf58
https://www.binance.com/?ref=15160968
Thank you for your time! If you have any questions, criticism, or advice about this post I would love to hear it. Look out for Part 2!