The internet is full of bitcoin trading tips, tricks, and rules for trading your digital currencies, but, truth be told, no one in the world can give you a full-proof strategy for profits. The crypto — and most other — markets are far too dynamic and unpredictable. Don’t blindly trust people when they say which cryptocurrency to buy. Always do your own research (or DYOR in short).

In summary, follow these crypto trading tips:

1. Start with a smaller investment
2. Pay attention to trading “spikes”
3. Diversify (spread out your investment)
4. Keep track of market movements
5. Active development of the ecosystem
6. Do not make rash decisions
7. Don’t try to time the market
8. Monitor the creation of new blockchain projects
9. Don’t fall for the hype
10. Do not lose your nerves

But after reading this article, you will hopefully have at least a slightly better understanding of bitcoin trading, and how to improve your odds for a good bitcoin investment. If you’re interested in buying crypto with a credit card or a bank deposit, you can register to Kriptomat here – it only takes two minutes.

Note: This text is of informative nature and does not count as a recommendation for investment. It does not reflect the personal opinion of the author or service. Any investment or bitcoin trading is risky, past returns are not a guarantee for future returns – only risk those assets that you are willing to lose. 

We have compiled 11 useful tips to remain safe in this market as a newcomer:

1. Start with a smaller investment

  • One of the first rules for every form of trading or investment is to never invest more than you can afford to lose. The market is extremely volatile, which means that big swings can happen in a matter of days, hours, and sometimes even minutes.
  • It’s wiser to invest a tiny percentage of your money when you’re starting out. This way, you will be able to familiarize yourself with the market.

2. When engaging in bitcoin trading and trading other cryptocurrencies, pay attention to trading “spikes”

  • One possible scenario is that a lot of people deposit a huge amount of money during the weekend, which will only be credited to their accounts on Monday. If a large percentage of these people then buys a lot during the day, it can temporarily result in a greatly increased value of bitcoin and other cryptocurrencies. Don’t have a fear of missing out (or FOMO) when that happens to avoid buying at a high.

3. Diversify (spread out your investment)

  • Don’t put all your eggs in one basket. By diversifying your assets into multiple crypto coins, you can decrease your risk because different cryptocurrencies have their highs and lows at different times.
  • You can also look into other investment options like gold, silver or the traditional stock market.
  • It is also a good idea to not just spread your investment over different assets, but to spread them over time. This means not buying or selling all at once, but doing it in smaller increments.

4. Keep track of market movements 

5. Active development of the ecosystem

  • Look for coins that have a large daily trading volume and have an active community. Check out the coin/project on popular social media platforms like Twitter and Facebook. Some communities also have (sometimes unofficial) chat groups on Telegram, Slack or Discord.

6. Do not make rash decisions

  • Trading emotionally is by far one of the worst things you can do. Fear of missing out (or FOMO) can be a real killer, especially when you see that a coin rises quickly and you buy at a high, and then it crashes and you sell at a loss in panic.

Patience can be very beneficial, except when you have a good reason (backed by your own research) to believe that it is a good opportunity to buy or sell. This leads us directly to our next point.

7. Don’t try to time the market

  • One of the holy grails of trading is to buy low and sell high. This is often easier said than done, which means that some people — through the aforementioned rash decisions and panic — invariably buy high and sell low.
  • One of the safe practices is that you never try to time the market.

8. Monitor the creation of new blockchain projects

  • Some companies are offering concrete solutions in various areas, but a lot of them are also selling nothing but hype. Distinguishing between them can sometimes be very difficult.
  • Many companies have ICOs or initial coin offerings. It is a crowdfunding strategy where you buy their crypto tokens with the hope that it will appreciate in value when the company releases its product and provides a use-case for the tokens.
  • Never invest your money into these tokens without proper research. Most of the time you will be buying into promises.

9. Don’t fall for the hype

  • Although the crypto community is working for the mutual good, there are still some individuals who want to quickly earn money through fraud and misrepresentation (aka scammers). The easiest way is to create some hype for coins in online chat rooms, with the aim of increasing the coin’s price and selling their own coins at a higher price.
  • Many users of such forums are just inexperienced and gullible as you are, so it’s a good strategy to follow your good judgment, objective information based on your own research.

10. Do not lose your nerves with trading bitcoin

  • In such a dynamic market, everybody can quickly make a mistake, even by following every conceivable tip in the book. Unless you really invested too much (which is the first thing that you should not do), any possible losses should not have a drastic impact on your life. You should look at every profit or loss as a lesson going forward. Go one step at a time. Stay calm and trade on!


What Is The Most Profitable Way to Trade Cryptocurrencies?

Well, as we see there is no real answer to this question :).

You can easily learn more about trading methods by searching for the internet for trading strategies, but follow the steps above to avoid scams.

You can access popular trading platforms, where individuals trade in different ways, depending on their preferences. If you are looking for a licensed, secure, and easy trading platform, you can use Kriptomat.

How to buy cryptocurrency? For the purchase of currencies such as Bitcoin, Ripple, Ethereum, and others, read the article: How to buy digital currencies – step by step.

This text is of informative nature and does not apply as a recommendation for an investment. It does not express the personal opinion of the author or service. Any investment or trading is risky, past returns are not a guarantee for future returns – risk only those assets that you are willing to lose.

What are your thoughts? Write your comment below!

If you are interested in purchasing cryptocurrencies, you can use Kriptomat. A regulated and licensed platform which is fast, safe and easy to use.


Join the discussion on our social media: Telegram Chat | Twitter | Facebook | LinkedIn

The New Kriptomat Referral System - Rewards Made Easy

At Kriptomat we follow a philosophy of making things as simple and transparent as possible for our users, which is why our new referral system is set up to do the one thing that matters quickly and easily - put money in your account. From now on, when you invite a friend to try K...

The New Cryptocurrency Experience Has Arrived!

The brand-new Kriptomat user interface is here and with this leap into the future we can finally unveil the results of two years of dedicated work. We’ve listened to you, our users, studied the way you use Kriptomat and thought long and hard about how we can give you an experie...