Cryptocurrency trading the way for beginners truth or myth
The general approach to trading in the field of cryptocurrencies is rather clear and does not conceal any extraordinary nuances. To earn on trading you should multiply repeat the same sequence of the basic steps.
- Dynamics forecast
Usually, the trader starts with trying to form a realistic forecast on assets having the greatest chances to grow in price in the market in foreseeable future with the help of analysis.
- Timely enter
Then you should carefully study price fluctuation dynamics in order to determine the moment for buying cryptocurrency at the best price short before its growth.
- Timely exit
Even after a long period of growth, the cryptocurrency price can decrease. The goal of the trader is to foresee this moment correctly and to manage to buying and selling cryptocurrency at the highest possible price.
In fact good trading results require long years of experience and practice. Moreover, even after many years of practice, some traders still cannot surpass passive investment strategy in the long-term, which has been checked and proved by serious researches in the share markets, exchanges, currency markets, etc.
Therefore, the trading itself is an interesting field, but only provided you are ready to devote your whole life to it. I don’t trust and see any evidences of stories promising to bring you success and profit without high risks and any essential efforts. There are no ready-to-use techniques or check lists which could be applied without profound plunging into this topic. Perhaps, they will appear in future, but I don’t see them in the market now. Today I see a crazy boom about this subject and desire to use high interest to this it by promising some things which will work and yield guaranteed good results. In my opinion, 90% of investors will be disappointed with blind belief in this approach.
Cryptocurrency trading risks
Cryptocurrency trading brings very good results, but entails very high risks. It’s very difficult for the beginner to balance trading risks and profitability to make it more efficient than some passive strategies of investing in currency Bitcoin. This requires skills, sophisticated over months and even years. And only very accurate and self-disciplined people who have studied this subject completely and devoted much time to training achieve really significant successes in trading.
On the Internet, there is a lot of information for quick and easy mastering of trading which guarantees positive results. To a great extend, it’s a manipulation. It works only at certain stages of the market and many people who post this kind of messages are not real professionals. There are some educational materials offered by professionals, but it should be stressed once again that you can learn and get good result from it if you devote your life to this subject.
Cryptocurrency trading is not so promising instrument for conservative and passive investor, who does not want to tie his whole life with trading. For a beginning investor, this instrument is also not so safe, as risks of loss are unfairly high.