Crypto traders differ from regular ones because, as the name implies, they tend to focus on cryptocurrency, thus narrowing their focus on specific crypto of their choice. It has its benefits and its flaws like any other type of trading. Still, it isn’t merely observing Bitcoin, for example, and deciding blindly when you could invest in it. There is lots of education and prevention behind it. Being a crypto trader has its benefits as any other type of trading. There is always something new to learn about, pay attention to, or consult with an expert. Plus, avoiding scams is another thing to worry about. Unfortunately, Bitcoin related scams are a common thing in the world of crypto trading, but with our advice, it will be relatively easy to avoid them, if you don’t act out of impulse. Let’s begin.
If you strive to become a crypto trader, surprisingly, Twitter can be a great place to get informed. Try googling the top 10 crypto traders on Twitter, and you won’t be disappointed. It will be a lot easier to learn how to properly read charts and analyze the market if you have an example from someone in the market for a long time or even trades for a living. Crypto traders are consistent with posting, and they even offer some free content if you enter their Telegram group, or sign up for a free course they made. Naturally, there are many more resources than this, so you shouldn’t neglect the help your broker can offer you and even read books about trading. Before we dive into what a good broker should be like, it’s important to mention once again how much technical analysis is important in trading. The support and resistance of a specific currency should always be your focus. Support lowers the currency price, while resistance is making it higher. Since the boundaries fluctuate a lot, when a “breakout” happens, a currency will find another spot for resistance and support. Indicators are important if you are analyzing Ethereum for example (as any other altcoin or Bitcoin). There are terms you should research and learn more about, such as RSI (Relative Strength Index, Bollinger Bands, and Stochastic.
A quick word about charts
You will often see a candlestick type of chart in trading. They are relatively easy to grasp since they visually show you the highest points and lowest at a specific time you selected. The colors are usually green and red. Red implies the prices went down, and green will mean the opposite.
Paying attention to world news is one of the crucial things people think isn’t necessary when they are beginning to trade. Remember that the world economy is something the trading market will tend to mirror, so that’s why you should be alert. This doesn’t mean you should read and listen to everything that comes up but set your phone or computer to show you the most important financial news or whatever you and your broker deem important for the currency you are trading with. Crypto News is a must, and we can mention crypto traders on Twitter again so it can be easier for you and not as mundane as reading the news articles.
Changing it up
Setting up your trading strategy is another must if you want your trades to make sense and be successful in the long run. The main catch is not doing the same thing for a long time, because you will get into the “comfort zone”, and eventually stop caring that much, leading to mistakes when you least expect it. The market changes and changing up your strategy, whether subtracting something over time and adding up what you think can work well is up to you. Still, it’s entirely natural for your strategy to evolve as you become more experienced in the field.
Learning whenever you can and gaining experience along the way can help you advance as a crypto trader and have a good sense of where the market is heading. Being responsible for your actions and not avoiding asking a question are the main qualities of a profitable trader.