“Don’t chase losses and don’t covet. Stick to your trading plan,” says the trader.
One of the keys is to maintain discipline, patience, rationality, and calm.
Making money trading Bitcoin (BTC) is not an easy task, mainly because there is no guaranteed method for success. The price fluctuations caused by cryptocurrency make it a perpetual risk investment, and any investment has its own risk. For this reason, we always welcome the advice of experienced professionals to take what works.
To this end, an anonymous BTC trader with eight years of experience published in NativeNewsOnline his 3 Secrets to Successful Bitcoin Trading. He cautioned that these are strategies he has learned over time and have worked well with him since he started doing this activity in 2014.
“I have been trading BTC since early 2014 and have been very successful. Therefore, I would like to share with you my secret sauce for success in Bitcoin trading.”
As a first tip, the specialist recommends Read and understand the market to make sound trading decisions. He noted that this includes understanding the factors that move the price of bitcoin, such as supply and demand, news that may affect its value, and indicators of technical analysis.
For example, note that if you see the price of BTC dropping, you may want to sell your coins before it drops further. Instead, he explains that if the value is growing quickly, the tactic will be to buy more in anticipation of higher prices in the future.
Although it is worth clarifying that it all depends on the strategy that you have. If you are an owner, i.e. if you keep the investment for the long term, you may be more interested You buy when it is falling, under the speculative belief that it will rise over time. This way of behaving differs from those of short-term investors, as trader Oscar Ortega recently explained in a note reported by CriptoNoticias.
“Develop a strategy and stick to it,” recommends the bitcoin trader
The trader emphasizes that in addition to understanding the market, he also It is important that you have A trading strategy that fits your personality and risk tolerance. That’s why his second tip is: “Develop a strategy and stick to it.”
He pointed out that The strategy should include guidance on when to buy and sell BTC, as well as the amount of money you are willing to risk on each trade. This will help you stay disciplined and avoid making impulsive decisions based on feelings.
The thing that advises on this topic is Practice your chosen strategy in a simulated environment before using real money. There are exchanges, such as eToro, BitMEX, Crypto Parrot, CoinMarketGame, and BitcoinFlip, that allow trading with fake money to try until you feel ready to take it seriously. In this way, risks can be managed by calculating potential losses and planning accordingly.
“Remember to remain calm and rational, and never make decisions based on emotion. With a little practice, you will be able to make profitable trades time and time again. You must remain disciplined and patient. Do not chase losses and do not covet. Stick to your trading plan and wait for the right opportunity to enter the market , the merchant commented.
The ultimate secret for the bitcoin trader to get the best price and reduce risk
His third tip is to always use limit orders to enter and exit positions, rather than market orders.. The reason he gave is that this tool will help you get the best possible price and reduce the risks.
“Market orders often result in buying or selling at a price that is not in your interest, which can lead to losses,” he explained. With limit orders, note that you are more likely to get the price you want and know exactly how much money you are risking on each trade.
Finally, as track rewardthe specialist advises Use a reliable platform to trade bitcoin. It is necessary to check the options available to choose the one that is safest and most convenient for the individual, as well as store bitcoins in a self-custodial wallet, as detailed in CriptoNoticias Criptopedia.