A lot of trade begginers in the pursuit of profit forget about some "underwater" stones of the cryptocurrency market and the major market "sharks" waiting, when you make a mistake or get panic. It gives them opportunity to increase theirs profits once again, and leave you with nothing.
Thematic market forums constantly spread different rules and tips to help begginers not to fall into the net of experienced traders.
In this article we have compiled the most important, in our opinion, advices of experienced traders: how to make money on the cryptocurrency market and don't lose money where it is predictable.
1. Theory. For successful trading on cryptocurrency market, you must begin to understand its main indicators: read or ask about graphs specifics, candlesticks, stock glasses. Theoretical knowledge will help you to understand how the market works. Also you need to necessarily explore the types of orders. More detailed theoretical information you can find in thecryptocurrency market dictionary.
2. Fee. Always remember that each market has different fee conditions. To get a profit, you need to make two transactions (in and output of currency from the market). At every stage of transactions, calculate how much you spend on the market fees, if you don't wont the summ became a surprise for you.
3. Technical analysis. Don't forget - the technical analysis is based on the explanation of the events that have already occurred. Do not even try to predict the course - even market manipulator can't do this!
4. Arbitration. Succumbing to the temptation to get a quick and easy profit playing on the exchange rate difference, inexperienced traders forget about the pitfalls that await them. It should be remembered that during the operations, rate may change and bring you loss. You can protect yourself against losses by keeping fiat and cryptocurrency on both markets. There are also other problems such as lack of desired amount of currency at the right price; order execution delay; charging fees when transferring money between the markets.
5. Distribution of funds. Distribute all assets that are trading - part of the funds hold in bitcoin, part in litecoin, in dollars and rubbles. Remember, never drain to "0" any part of this distribution.
6. Common sense. Playing on the cryptocurrency market, be careful and attentive. Remember, you are just starting you way of trader!
That's all, wish you all a successful trading!