Don’t Miss These 3 Rules Of Crypto Trading

rules of crypto trading

The 3 Rules Of Crypto Trading

rules of crypto trading

There are lots of talks when it comes to crypto trading. But some of them being just noise. First of all, you should note that trading cryptocurrencies is not a gamble. You have to continuously pay attention to market patterns and analyses.

In this guide, we are going to go through the best 3 rules of crypto trading. However, you should note that this is not a financial or investment advice. Trading cryptocurrency is risky! Especially with cryptocurrency trading becoming more mainstream, we’all want to get profits from this trade. So, here are the most important guides to trading cryptocurrencies.

Note: Every cryptocurrency apart from bitcoin is known as an altcoin.

rules of crypto trading

1. Quickly Take Profits And Make Use Of Stop Losses

Stop loss is an order designed to limit an investor’s loss in a trade.

If you are trading any crypto and not holding for the long-term, you should always set stop-losses. Setting stop losses not only help you reduce your losses incase of a market dip. It also helps you sell automatically for your fiat currency, and enter the trade again at a lower price.

Similarly, the same goes for taking profits. If you are already making a 60% profit of a trade nothing stops you from taking your gains smiling. If you wait too long for it to reach an 80% margin, you may lose some or all of already made profit.

Remember, no one has ever lost money taking profits!

2. Only Invest What You Can Loose In Crypto Trading

This is supposed to be the number one rule of trading cryptocurrencies. But these rules are in no particular order, so here you have it.

Trading cryptocurrency is a game. And just like in games for every win there is a corresponding loss. In most games, there may be draws. But not in crypto trading. You should always know that while you are taking profits, another person has a shitty face looking at their losses. And this can go both ways.

So, how much are you willing to lose?

3. Always Watch Out For Bitcoin

Market experts have noticed that when the price of bitcoin skyrockets, there is a dip in the price of altcoins. This is because investors are leaving the altcoins and buying bitcoins.

Conversely, sometimes the you see the price of bitcoin drop when the prices of altcoins rise.This is caused by investors pulling their money out of bitcoin and rushing to rising altcoins. And this wave can go back and forth.

Additionally, you should note that the best time for altcoin spike in price in when that of bitcoin declines, stagnant or just rises slowly.

Bonus: Altcoin Volumes Matter For Crypto Trading

Volumes is the amount of altcoins traded over a period of time.

In crypto trading the higher the daily trading volumes, the more suitable the coin is for long-term investing. And for a fact a lot of altcoins lose their value over a short period of time. Experts always advice that:

  • If you are to hold on to an altcoin for a long-term, do not hold on for too long.
  • You should hold on to bitcoin for the long investments and trade altcoins.

Furthermore, study price patterns on charts as they always help you know when to buy and sell your coins.

Check Out: What Is Cryptocurrency? A Simple Guide

The Best Cryptocurrency Exchanges In Nigeria

Cryptocurrency exchanges are platforms that allow customers to trade cryptos for their conventional fiat money.

Exchanging your hard earned money for altcoins or bitcoin in various exchanges should be done cautiously. For you to call a crypto exchange good, it must satisfy the following:

  • Good Reputation
  • Nice Exchange rates
  • Safety
  • Low fees

Check Out: The 5 New Ways To Get More Instagram Followers

Here are the top 5 cryptocurrency exchanges in Nigeria  that fulfill the above criteria:

1. Luno Exchange

Luno formerly known as BitX was founded in 2013. And it provides services for 44 countries including Nigeria. The Luno exchange provides the following services – wallet services, instant buy and sell, trading platform. Furthermore, Nigerians can make payments on this platform through bank transfer. Luno exchange supports the following cryptocurrencies:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)

2. Quidax Exchange

Quidax is one of the best cryptocurrency exchanges in Nigeria. It allows Nigerians buy cryptos with the Nigerian Naira, sell cryptos. It also provides wallet services for its users as well as a trading platform. With Quidax, payments are made through credit/debit cards, bank transfer and USSD deposits. Quidax supports the following cryptocurrencies:

  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Dash (DASH)
  • Tether (USDT)
  • Ripple (XRP)

3. NairaEx

With the launch of this platform in 2015, it has been proven and trusted with providing its users the ability to purchase and sell cryptocurrencies. NairaEx was established in Nigeria and has its headquarters in Abeokuta, Ogun State. You can make payments on this platform through bank and ATM transfers. NairaEx Supports the following cryptocurrencies:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)

4. Paxful

Paxful is a peer-to-peer exchange that offers services to users in Nigeria. The following are services offered by Paxful – wallet, peer-to-peer exchange,vendor services and affiliate programs. You can pay for cryptocurrencies in this platform via bank transfers, digital currencies, online wallets (skrill, paypal, etc) and credit/debit cards. Unfortunately and not, Paxful supports the exchange of only bitcoin.

In conclusion never stop learning. You made losses trading today, there was a reason for that. Analyse your trade again and try to figure out why it happened. This helps you make good market analysis and profitable future trades. Did I miss out any valuable information? You can share via the comment section below.

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