Cryptocurrency trading is now not only limited to the big players in the market. Retail traders now have access to the crypto trading industry and they can easily take trades. However, the leverage offered in the crypto trading industry is not as high as in the currency trading business. This is due to the fact, cryptocurrencies are much more volatile, and increase leverage adds significant risk factors to the performance of retail traders.
You might be wondering that learning to trade cryptocurrency will take years. Though it is true to a certain extent if you fail to follow the proper step, you might not even learn this process at all. That’s why we are going to give you some amazing guidelines which will let you trade the crypto market like a pro trader in the Mena region. Let’s dive into the details.
First, of you all, you have to ask yourself whether you truly feel that cryptocurrency trading is the right profession for your life. If not, you should never try to pursue your career in this profession. This is not a shortcut way to become rich. In fact, without having strong devotion, you are never going to make your life better. You will keep on losing money and become frustrated. So, be honest to yourself and make sure you truly want to learn the art of cryptocurrency trading. If required, take few days for thinking about this profession. Once you are certain that you will cryptocurrency trading, start practicing.
Chose well-regulated broker
To practice crypto trading, you need to choose a well-reputed broker. The rookies often ignore the importance of well-regulated brokers like Saxo and invest their money with the low-end brokers. Eventually, they keep on facing technical problems and become frustrated. By opening a demo account with the high-end broker, you should be able to use the advanced tools systematically. Moreover, you can use the free resources offered by the broker to develop your skills.
After trading the demo account for few months, you might have the urge to trade with real money but this should be controlled at any cost. Unless you can trade successfully for three consecutive months, you should never trade with real money.
Support and resistance level
In the Forex market, you may take the trades at the minor support and resistance level. But in crypto trading, you should only consider the major support and resistance level as your prime trading zone. If you ignore the major support and resistance level, it will be really hard to make a profit. Moreover, you will be facing trouble due to sudden changes in the trend. That’s why we recommend the rookie traders trade the crypto market in a daily or higher time frame.
Higher time frame trading might seem extremely boring but it is by far the most efficient way to make money. You should not tend to scalp the market. Try to use a position trading strategy to get the maximum benefit from the market.
Analyze the news data
Very few people pay attention to the news data in the crypto trading business. They think technical analysis is enough to make a big profit. But if you rely on the technical data only, you won’t be able to deal with the sudden change in the market volatility. That’s why you should develop a strong habit of reading news on the crypto market as it will improve your decision-making skills. Moreover, it will also help you to execute the trades in a standard way and you will become more confident with your actions.
Smart traders know the key benefits of trading cryptocurrencies. If you believe this is the right profession, you must follow the tips mentioned in this article. And try to seek guidance’s from experienced professionals as they can help you to make better decisions at trading.