• Home
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
TechArtes - Tech News, Reviews & Gaming
  • Home
  • Crypto Coin PricesLive
  • Business
  • Gaming
  • Technology
  • Gadgets
  • Mobile
No Result
View All Result
  • Home
  • Crypto Coin PricesLive
  • Business
  • Gaming
  • Technology
  • Gadgets
  • Mobile
No Result
View All Result
TechArtes
No Result
View All Result

Managing Risks When Trading Bitcoin and other Types of Cryptocurrencies

by H Fang
Different-types-of-cryptocurrencies

Who doesn’t want a successful bitcoin or crypto trading? Every trader or investor strives to make it a reality. But it is easier said than done, and risk management can play a crucial role. 

Of course, you try to have a good trade set up. However, it won’t guarantee long-term success, remember. 

RelatedPosts

Successful Cryptocurrency Business Models

Coinbase Review – Cryptocurrency Exchange

TOP Apps For Crypto Trading | 2021 List

Every trader, whether beginner or experienced, fails from time to time. This is where creating and developing an effective risk management strategy can come into play. 

Below are a few recommended ways to reduce the risk during bitcoin trading while maximizing high returns on investment: 

Try to Protect Yourself from Any Counterparty Risks

Yes, the crypto market indeed has the highest percentage gains. But we cannot deny its counterparty risks. 

Since any crypto transactions are irreversible, never trust an exchange with your public or private encryption keys. It can be a headache after some time. 

In the past years, the list of crypto exchanges that get hacked continually increases. 

As a trader or investor, we cannot get rid of counterparty risk. However, we can reduce it. 

To protect yourself from the risk, never leave coins on an exchange when you are not actively trading. 

What else? When starting out, you just have to trade at least 20% of your portfolio to minimize losses. 

But wait, there’s more! Diversify your coins. Don’t rely on bitcoin alone. Take advantage of other reliable cryptocurrencies to open more successful opportunities along the way. 

It is also important to do some research on a specific exchange. This allows you to measure how reputed your choice can be. 

Be a Quality-Centered Trader 

Quantity bitcoin trading might be effective before. Today, it is essential to be a quality-centered trader or investor. 

Why would you over trade the crypto market when you would just waste your time and money? 

The secret here is to focus on quality bitcoin trading. Swing trading and automated scalping have been getting a popularity in the past years. 

Swing trading is an ideal solution during strong trends. Automated scalping, on the other hand, is more effective, especially when the crypto market is stable. 

Before you make decisions, identify what trading style works for you. Also, determine and study market conditions. 

Exit Strategy is Worth-It

Creating an exit strategy might seem unimportant. But traders and investors realize its importance during an emergency. 

Before it is too late, it is crucial to have an exit-strategy because when obstacles take place, you know what to. 

While many things linger in your mind, identify and study resistance levels on charts. Then, map out your trades for the future. 

What else? Measure the risk to reward ratio while setting SMART targets to ensure good profits. 

Some traders add their position during strong trends. You can do the same thing. But make sure the strategy suits your unique requirements and needs. 

Avoid Excessive Leverage As Much As Possible 

It is common for traders to use margin as it increases order size and leads to flexibility. 

However, other traders use too much leverage. As a result, they don’t have ample time to breathe. Also, losing your principal amount during liquidation is higher than you’ve thought. 

When you study the market, you may find out that some exchanges provide leverage as x100. But avoid that as it can destroy your account. 

The use of leverage as high as x3 is a good idea. When handled properly, it increases your gains and gives you time to exit a bad crypto trading. 

Bottom Line

Above all, working with a certified and trusted company to Invest In Bitcoin can make a big difference. Feel free to visit the platform for more details. Enjoy a less risky bitcoin trading!

Tags: Different-types-of-cryptocurrencies

H Fang

Hina Irfan is a professional blogger, outreach expert, and writer. She is an active content creator who aims to inspire. She writes for several online magazines and on diverse topics with the focus on offering useful and actionable information to the readers. You can contact her for outreach opportunities at [email protected]

Next Post
Bitcoin Trading

Boost Your Online Investment with Bitcoin Trading

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Recommended.

Esports Games in 2020 – What’s Ahead for Gamers!

Esports Games in 2020 – What’s Ahead for Gamers!

What Features to Look for When Buying a Handheld Emulator?

What Features to Look for When Buying a Handheld Emulator?

Trending.

sms-marketing-strategies

SMS Marketing Best Practices For Ecommerce

botnet HD

What is a Botnet Attack and How It Works

Vancouver AV Company Specializing in Audiovisual Installations

Vancouver AV Company Specializing in Audiovisual Installations

Organization Techniques for Improving Your Productivity

5 Organization Techniques for Improving Your Productivity

Convert YouTube to MP3

How to Convert YouTube to MP3- Step By Step Process

Latest Discussions

  • Pankaj Tyagi on Convert an Exchange or IMAP .OST to a .PST
  • LP2Lily on How to Block Someone on YouTube – Working Guide 2020
  • Florian Berg on XNSPY Review 2020—What’s New in Smartphone Monitoring?
  • Karina Espina on How to Block Someone on YouTube – Working Guide 2020
  • Glen on How to Block Someone on YouTube – Working Guide 2020
TechArtes

Artes (noun) - studies intended to provide general knowledge and intellectual skills.
TechArtes strives to do the same with Technology, Gaming & Mobile.

Follow Us

Categories

  • Business
  • Cryptocurrency
  • Design & Code
  • Gadgets
  • Gaming
  • Info Base
  • Marketing
  • Mobile
  • News
  • Technology
  • Uncategorized

Recent News

botnet HD

What is a Botnet Attack and How It Works

Organization Techniques for Improving Your Productivity

5 Organization Techniques for Improving Your Productivity

  • About
  • Submit Guest Post
  • Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2020 TechArtes - Best Tech Community on the Web!

No Result
View All Result
  • Home
  • Gaming
  • Technology
  • Business
  • Gadgets
  • Design & Code
  • News
  • Mobile

Copyright © 2020 TechArtes - Best Tech Community on the Web!

wpDiscuz
0
0
Would love your thoughts, please comment.x
()
x
| Reply
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.