Article 4 important tips for cryptocurrency traders
Choose the best trading platform available
As a beginner it is important to do some research and find out which trading platforms can be trusted and which should be avoided.
Probably one of the most important factor is the daily trading volume of a platform because that determines the total number of their users and therefore how trusted it is. Another important factor is checking to see if the platform is regulated by a government, because this makes it much safer to use.
Be careful at coins that have a low volume and high volatility
Even though in the crypto market there is a chance of making lots of money, you should always be careful when different coins and projects promise huge profits in a short amount of time.
If you see that a coin has gone up with more than 100% in the last 24 hours, do some research and find out why this happened. Most of the times this type of coins have a very low volume of just a couple thousand dollars and therefore it is easy to spot that the price is being manipulated by one person who's trying to fool people.
Avoid Pump and Dump schemes
You've probably seen and heard about this before because this scheme is popular in different social networks like Twitter or Telegram. The whole idea behind a Pump and Dump scheme is to create a lot of fake hype about a coin in order to pump it's price and as the name says it all ends with everyone selling at the peak and therefore the coin is being dumped. The only problem is that when the coin reaches it's peak, only a very small percentage of investors will get a chance to sell their coins as the price will drastically decrease in less than a couple of minutes. It is very dangerous to participate in a pump and dump scheme, therefore you should avoid it at all cost.
Never trade blindly
Trading is not as simple as it looks. There is a whole process that needs to be completed before making a decision to buy or sell a coin. You should not start trading using real money until you have gained enough knowledge about this phenomenon as you can quickly lose everything you've invested.