Earning on the speculation of cryptocurrency seems to be the dream of everyone nowadays. We all tend to believe that one life-changing investment can make you rich in a moment and, most importantly, let us remain rich.

Perhaps, there is a part of truth in this belief. But nothing good comes this easy, and even if you succeed in crypto trading once, this gives no guarantee it will be so next time. What you need to figure out when first considering crypto trading to get additional profit is that the cryptocurrency market is constantly moving and changing. You can’t make accurate predictions for tomorrow or today: due to high volatility, prices of crypto coins change every hour. 

But don’t let this practical introduction not discourage you. Crypto trading is indeed tricky, but who said it could not be profitable for you? Is it smart to invest in Bitcoin this year and what you should know before choosing to trade? What is Cryptocurrency? You must have so many questions similar to this.

This short article will reveal both the advantages and dangers of investing in crypto and spotlight some valuable things you should know before being involved in actual trades. Read ahead to learn about all you need to know about Cryptocurrency and bitcoin trading in the actual market.

Think before you invest or how to protect yourself from epic investment fails.

Success stories are real. And no doubt, failures are also real. For example, when someone invests 5,000 USD in crypto coins because it’s quite a fashionable thing to do and loses this sum the following week. Such stories are commonplace and happen for many reasons. But most of all, they occur because investors have wrong expectations and haven’t understood how the market works.

So, here is our recommendation of the things to consider before getting into any cryptocurrency business, including trading.

1. Know your reasons

Ask yourself a fundamental question, ‘Why am I investing?’ to see the real motivation of your desire. Make sure you don’t chase this idea because of the high popularity or loud promises you’ve heard. You need to have an apparent investment goal and keep to it even if the situation will not look like bringing profit instantly.

The best practice here is to think this as an long term and alternative investment. The portfolio strategy will give mental peace from speculations and market ups and downs. You need to fix your profit and loss margin, and should stick to it. 

2. Learn about cryptocurrencies

Besides having the right reasons to invest, it is vital to have basic knowledge about blockchain technology and realize how the industry works. Sure thing, you can’t learn everything in one day, but the more you educate yourself, the better your investments.

The cryptocurrency market has a wide gamut of complex calculations. Do proper study of this market from reputed sources. Don’t just follow any Twitter account or YouTuber blindly. Make sure to attend many online / offline events of the same domain. Learn from various industry people and use their guidance to make your own goals. 

3. Join a reliable community

Crypto exchange services are so numerous nowadays that it’s hard to choose the one you will stick with. When making your decision, try to look at the key features and small details like what payment methods the platform accepts and how long fund withdrawal lasts. Besides, think about the place to store the crypto you will buy. Some services don’t allow you to transfer coins to your private wallet and insist on leaving them on their platforms. Just see if it’s convenient for you before trading takes place.

We strongly recommend you to focus more on official places for trading. This will eliminate the risks of getting into trouble with scams. Platforms for exchange such as Binance, Kraken, or Bitcoin Profit are great places to start. It will help you to learn all you need to know about Cryptocurrency and its related trades. It will teach you regarding how to do bitcoin trading. 

Another benefit of official exchanges is personal data protection. You can be sure that your data will stay private every time you enter your email and password on the Bitcoin Profit platform.

4. Pay attention to crypto white papers

Since every cryptocurrency project must have a document called white paper to be legally traded, check it every time. If you don’t find it, consider it a red light and don’t go for it. In a white paper, there is data about the features of a specific crypto coin and are made for promotion purposes. They prove that cryptocurrency was officially launched and it’s not a fraud.

Read what developers explain there and see if there are specific details about the project. If this paper lacks something or doesn’t clearly understand, this is likely to be a fraud document. This disruptive technology is the latest game changer, which is changing the world. 

5. Don’t rely on one crypto coin only

Since newcomers often choose their ‘favorite coin’ and tend to dump money in only one digital coin, this makes them fail. Instead, try to see what coins are booming right now and the significant demand for them. Buying a few coins is a smarter decision as the prices of all crypto coins won’t fall simultaneously.

You need to make a bouquet of diversified coins. Learn about their current market share, total capital, future speculations and predictions and other financial matters. You need to compare different parameters to make your own list of bitcoin investment.  

The final word and risk warning

As you see, the world of cryptocurrency is a complex system. You can’t study it in a week and be ready to gather profits right away. Even experts who work in this sphere for years can’t boast a complete understanding since blockchain technology grows and expands every single day.

So, you need to have enough patience and persistence if you want to make lucrative trades. Fill your head up with more knowledge, read official and well-respected sources where professionals share their points of view and predictions about the crypto market. Online magazines like Times or Forbes, or Economic Times will do. Still, don’t forget to analyze the info you perceive and think it over in a critical way.

Speaking about the risks, you should always be aware of them and be ready to risk the sum of money that you invest. Amazing tools like Coinbase or Bitcoin Profit App give you great chances to get profit. Still, none of them gives a total guarantee of success, so you need to rely only on your logic, respectable sources, and the ‘feel’ for trading.