The price of most cryptocurrencies has been volatile in recent years, it been hardly to predict and most successful cryptocurrency traders has exploit this, over the years. The question now is what is it that differentiate a successful cryptocurrency trader from other cryptocurrency traders? This question, we are going to answer by teaching you how you can become a successful cryptocurrency trader, the step-by-step approach and other important tips on cryptocurrency trading you need to know. Remember, you can be the best cryptocurrency trader, only if you are willing to learn and put what you have learnt to practice.
On the other hand, Nigeria herself, is a young in terms of demography, as cryptocurrency business is majorly a trade of the young and the enlighten, in terms of digitality and the internet.
Step by step on how to become a successful cryptocurrency trader
A cryptocurrency trader is someone who seek to make gain from the changes in market prices of most cryptocurrency. The dream of every cryptocurrency trader is to buy at low cost and sell at high cost. Though one must definitely run loss at some points but the goal is that the number of gains should pass loss
Below are the three basic skills you must posses to be a successful cryptocurrency trader;
- Risk Management
A close look at the graph above, you will see up and down movement of demand and supply curve and price fluctuations also. Looking at that graph you may think it’s just an ordinary drawn line. But honestly speaking, this are people’s money, the gain and loss, in other words, it’s the market demand. At some point in that graph, the demand is greater than supply resulting to rise in price, while at other points, the supply is greater than demand resulting to fall in price. Its expected of a good cryptocurrency trader to buy when the supply curve rises, which is decrease in price and sell when the demand curve rises also which is increase in price also. But to do this you need extreme self-control.
Just like we said in our previous article, that no man is perfect or accurate enough to perfectly the market. This makes it necessary to work with statistics and data available to you.
Discipline is the key to every successful business. No business survives the test of time and trials without key discipline from the management. This also apply to cryptocurrency. To be a successful cryptocurrency trader, you have to learn to be discipline, stay disciplined and remain focused.
Discipline is necessary not only just for your crypto trade or what so ever business you may wish to engage on, but necessary in your everyday dealings. Discipline is one key factor in life one must uphold. A discipline mind can achieve greatness, once it stays focused.
To achieve discipline, you can pick up a discipline course and study. Discipline plays a rule in areas such as, management of your investments, when to invest and when not to invest, ability to avoid disastrous mistakes in investment decisions and so many other funny mistakes that has financially grounded so many cryptocurrency traders.
Just like the name imply. Risk management is one of the top most skills needed to become a successful in trader cryptocurrency. Taking risks is a very vital, for every cryptocurrency trader, but managing this risk is what differentiate trader from traders. To explain further, we will be breaking risk taking down according to individual personalities and this results to two categories of individuals
First, we have the risk takers, these risk takers can further be broken down into two categories:
- Reckless risk takers; this are cryptocurrency traders who just invest money into cryptocurrency without necessary calculations and evaluations. From the cryptograph above, you will observe that cryptocurrency price fluctuates a lot, with each movement favoring traders on either.
- Calculated risk takers; this category has the highest number of successful cryptocurrency traders. These are individuals of highly skilled data analysts. They analyze the market trends using available data, know when to buy and when to sell.
Secondly, we have the category of those who always want to play safe and are always afraid of risking their assets. Few among them that are into cryptocurrency only buy and keep, hoping to sell when the price rises in the future. They try as much as possible to avoid gambling with their money by engaging in day-to-day cryptocurrency trade.
Everything in cryptocurrency involves timing, time to buy and time to sell. Though no man can be accurate enough to predict accurately, the market trend. But with the aid of some available data, you can predict with some degree of certainty what the market is likely to turn out for the day, and time yourself to exploit to full potential of the such opportunity when they present themselves.