You must know how to play crypto safely and smartly, so that money is abundant. Because many new players experience bonuses or losses when they don't know how to play crypto properly.
With this how to play crypto guide, every beginner can learn how to find the best trading strategies and avoid common cryptocurrency mistakes. If you are looking to invest in cryptocurrencies, here are some ways to play crypto the right way.
How to Play Crypto Beginners
Have a Strategy To Play
It's not easy to separate genuine cryptocurrency recommendations from scams, there are tons of sharks out there waiting to take your money.
Reports of crypto investment fraud jumped to 7,118 in the first nine months of 2021. This is up 30 percent from the whole of 2020, according to Action Fraud, with an average loss per victim of $20,500 million.
So when you are faced with a lot of information about cryptocurrencies, step back from it. Try to look critically at the project or platform. How many users does it have? What problem does it solve? Avoid coins that promise a lot of money but don't deliver anything tangible.
how to play crypto that you need to pay attention to is that you have to be able to manage risk. Some people who offer crypto trading may not have your best interests at heart. So don't get stung by making the same mistakes as others.
Set limits on how much you invest in a particular cryptocurrency and don't be tempted to trade with more money than you can bear.
Cryptocurrency Trading is a high risk business and more traders lose money than not.
They prefer to stay put and collect small but sure profits from regular trading on the official bitcoin up app.
Consider investing less of your portfolio in less liquid markets. Such high trades require more tolerance, while stop loss and profit target points will be allocated further from the buy level.
Crypto Portfolio Diversification
The best way to play crypto for beginners is asset diversification. There is no point in investing too much in one single cryptocurrency. Or as they say: don't put all your eggs in one basket.
As with stocks and stocks, spread money between different digital currencies. This means you don't risk being overly exposed if any of them fall in value, especially since the market price of these investments is highly volatile. There are thousands to choose from, so do your research. Examples include BNB and ADA.
Prices can go up and down quite drastically from day to day, and novice traders are often duped into panic selling when prices are low.
Cryptocurrencies will not go away. Leaving money in the crypto market for months or years at a time can offer the best rewards.
The way to play crypto to stay safe is to set up automatic buying and selling. Just like shares and common stock, it can help automate buying cryptocurrencies to take advantage of pound cost averaging.
Most cryptocurrency exchanges, including Coinbase and Gemini, allow setting up repeat purchases.
Most cryptocurrency exchanges, including PITu and Crypto Shops, allow you to set up repeat purchases.
This is where crypto investors tell the platform to buy a fixed amount of their preferred cryptocurrency each month. For example, bitcoin worth 500 million rupiah. This means they get a little less currency when prices are high, and a little more when prices are low.
It takes the stress out of trying to time the market by buying the currency at the lowest possible price or selling at the highest price. This is something that even market professionals struggle to get right.
Most beginners make one common mistake, buying coins because the price seems low or what they find affordable. Take, for example, someone who chose Ripple over Ethereum simply because Ethereum is much cheaper.
The decision to invest in a coin should have nothing to do with its affordability but a lot to do with its market cap.
Just as conventional stocks are measured by their market capitalization, which are evaluated using the formula Current Market Price X Total Number of Shares Outstanding, the same is true for cryptocurrencies.
Use Trading Bots
How to play crypto for those of you who are still beginners can use trading bots. Trading bots can be useful in some circumstances, but are not recommended for beginners looking for crypto investment tips. Often, they are just scams in disguise.
If there was a real algorithm that perfectly timed buy and sell trades, everyone would use it.
Criminals can easily raise or lower the price of very small or unknown cryptocurrencies, sometimes sending the value of these currencies skyrocketing.
Sometimes criminals will own a lot of certain cryptocurrencies (via pre-mining most of them before they become available to the general public).
When traders unwittingly rush in to try and partake of the action, the criminals wait for the price to rise before selling all their coins and causing the price to fall.
They can increase the price by promoting it on social media, before selling it at a higher price.
With so much cryptocurrency in the market, it can be difficult to tell what is real and what is not.
When you invest in fake coins, criminals can steal your identity and often your hard-earned money.
Read also: Crypto Investment Benefits and Risks
Don't take other people's word for it and use as many sources as possible to do your own research on coins before you buy them.