Planning for bitcoin investment? Note these Dos And Don’ts first

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Bitcoin trading has become a part of many people’s life to earn some extra income just like stock trading. But trading bitcoin is associated with some risk factors and needs the expertise to overcome those risks. So, as a beginner of trading bitcoin one must know some dos and don’ts that should be kept in mind while bitcoin trading. If you are interested in bitcoin trading, you can visit https://bit-iq.de/ for more information.

Dos: Some must-have knowledge to take before starting bitcoin trading-

1. Diversify portfolio: This is an important piece of advice that most investors give to the new traders and they also follow it personally. Diversifying a portfolio means dividing your savings into small pieces and investing those into different cryptos, commodities, etc. along with Bitcoins.
2. Check bitcoin’s price movement: When you are putting your hard-earned money into a volatile asset it is most important that you check its current price with the records and future potential. Bitcoin had a wide price gain during that time. So, people investing in 2020 or before that, made a huge profit in 2021.
3. Calculate the risk: The volatile market of bitcoin is always risky if you are not an excellent trader. After knowing the market movement, decide whether you have the appetite to tolerate the risk or not if something bad happens.
4. Determine a strategy: Trading without a strategy can lead to a disastrous end. Before you start, sit and decide how much money you are going to invest, how much you are expecting from the market, and then form a guideline on how you are going to accomplish that. It includes research, calculating time, deciding on a trading plan, etc.
5. Find a reliable platform: Now, many people are clear about what they are doing and what are their trading strategies but fail at last due to unreliable trading exchanges. Today if you see the market, it is overloaded with trading platforms. But you have to choose the right one that you can trust and that has all the trading facilities. For that, see the users’ reviews and if possible, visit their address once before registering with them.
6. Have a secure wallet: You can buy a bitcoin wallet or you can accept the wallet the trading exchange offers you. Whatever it is, you must choose the correct wallet to protect your private key and thus your bitcoins.

Don’ts: Some mistakes people make and precautions to avoid those-

• Trading with all live savings: Trading or investing doesn’t ensure profit. It is always associated with risk factors. Trying to add some amount to your earnings is not bad but, you might not want to lose your hard-earned money in order to do so. Start with a small amount. Investors suggest less than 5% of your savings.
• Starting without an exit plan: Some new investors become overconfident and do not have an exit plan and all of a sudden, they found themselves robbed. Confidence is good, but you must have some planning when you are dealing with money. Setting a stop loss can help you out in this situation. A loss is when you set a limit smaller than your buying price so that you can automatically get out of the market when the price drops below that set limit. Here, you are losing some amount but it will not be a huge loss.
• Incorrect timing: Timing is the cru crucial thing in trading. In trading or investing, you need tobuy at a low price and to sell at a higher price. To make that happen, you should always keep an eye on the markets to never miss any important detail.
• Influenced by social media: Bitcoin’s or any other trading asset’s value fluctuation depends on social media influencing and news. You can notice a huge rush to trade whenever good news or content comes out on social media. Most of the time the news can make confused when you read or see so many contents and comments. So, do not get yourself caught by it. Do your own research.

Conclusion:

Keep these things in mind before starting an investment or trading. They might get some of your valuable time and patience but these things are the pillar of a healthy investment.