Introduction to Trading (DYOR)

Potentially, investing in cryptocurrency can be very profitable. Trading cryptocurrency as an expert is also exciting. It may be the other way around if you are greedy and trading without a good understanding of how trading work.

Note that this is not financial advice.

I learned a few tips from some experts that might be valuable to you.

**Do Research And Be Education **

Diving into space requires the knowledge of how the space works. Just like diving into a river, it requires the necessary research about the depth, topography, and information about aquatic organisms in the river.

To trade cryptocurrency, it is essential to research the cryptocurrencies and markets, to learn about projects through whitepapers, and blockchain technology, and to have the required discipline for trading.

Getting the right information is essential, only the traders that get the right information have successful trading experience.

Getting the right information empowers a trader to make an informed trading decision and distinguish them from novices.

Staying up to date and getting first-hand information about projects and cryptocurrency market trends is important.

It is also good to use adaptive trading strategies which could fit into the various changes in market trends, regulatory policy, and advancement in technology.

    **Risk Management**

The best way to survive in cryptocurrency trading is not to lose your crypto asset. There are several risks associated with cryptocurrency trading.

• You might lose your money while trading.
  Experts advised that you should not trade more than what you can only afford to lose.
  On this note, it is advisable to use stop loss to a specific reasonable price while trading, since trading is not 100% predictable.

• You might lose through scammers.
  This loss is associated with security issues and cyber scammers.
  Suggestions say you should use a very distinguished and strong password.
  Using two factors authentication (2FA) and storing crypto assets offline are good decisions and considerably more effective than any other known methods.

• Investing in only one crypto asset.
  You can lose your asset to poor crypto performance.
  The focused cryptocurrency might perform awfully, it is an intelligent suggestion that you should spread your fortune on more than one crypto asset as the gain in one might comfort you if the other is performing badly.

       **Analysis**

There are two forms of analysis to consider:
Basic Analysis: This is the research about the cryptocurrencies you'd like to trade. Involves knowing the demand, potential utility, future growth possibility, the motive behind the technology, and demand.

Ignorance of the motive behind the project might lead to a financial disaster.

Advance Analysis: Studying historical charts and understanding indicators makes it easy and possible to determine the entry point and exit point of your trade.

Note: DYOR before undergoing any trading. I will not be accountable for any loss as this is NFA.