Although ten years have passed since the creation of the first Bitcoin exchange, the cryptocurrency environment still resembles the Wild West. For some, smart judgment can lead to gains of hundreds of percent, while for others, one wrong decision can mean the complete loss of everything.
So the question is, how do you secure your initial money against exchange rate fluctuations, as well as your income from scammers?
Below are some safety bitcoin investment tips that every crypto investor should know. Read on to find out more.
Safety Investment Tips for Bitcoin Investors
#1. Sharpen your concentration, but not too much.
Don’t overwhelm yourself by trying to monitor and trade too many markets simultaneously. Most traders have their hands full, following a few different markets. You should bear in mind that futures trading is time consuming and requires a significant expenditure of time and energy. Even for the most experienced traders, studying charts, reading market commentary and keeping up with the news can be a tedious task.
There is a significant risk that if you try to monitor and trade too many markets, you won’t give each of them the time and attention they need. The reverse is also true: focusing only on one market may not be a wise strategy in some cases as well. It is well known that diversity in the stock market has several advantages. It is possible that diversification into futures trading also has benefits.
#2. Maintain a steady pace in your trading.
If you’re new to futures trading, don’t press the accelerator pedal. When you’re just starting out, it’s not necessary to start trading five or ten contracts at once. Drawdowns are inevitable, so you should avoid creating a huge position where one or two poor trades could completely wipe you out financially.
Instead, start with a small number of contracts and gradually grow your trading process without the added overhead of managing larger contract portfolios. Make the necessary adjustments to your trading, and if you discover an effective style or method, you should try to increase your order count.
#3. Consider both short and long term investment plan-
In both rising and falling markets, trading opportunities arise. In the stock market, it is natural for investors to look for buying opportunities or to “go long”. However, if you are not equally open to the possibility of “going short” in a market, you may find yourself overly restricting your trading prospects. With futures contracts, you have the option of selling or buying in the market. You can start by buying a contract and then selling it to close your position. Another option is to sell first and then buy a contract to balance your position.
#4. Take notes on margin calls.
The most likely reason you received a margin call is that you held onto a lost trade for too long. Therefore, consider a margin shortfall as a red flag that you are emotionally tied to a position that is not working as expected. Instead of moving extra money to satisfy the call or reducing your open positions to minimize your need for margin, you are better off giving up the losing position altogether.
#5. To be patient-
It’s important not to get so caught up in market activity that you lose sight of the big picture. Of course, you need to keep track of your work orders, available jobs, and account balances. However, it would be best not to rely on every rise or fall in the market. On top of that, you might be thrown around by little zigzags or jigsaws that look menacing and big over time, but end up turning out to be little more than intraday blips on your chart.
In other words, try to have a longer term perspective in mind. Trade with Bitcoin Revolution, enthusiastic financial investors can seamlessly invest in Bitcoins like a pro. For example, it may be more efficient to lengthen the duration of your trades rather than trying to trade every move in the market.