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THREE SAFEGUARDS IN CRYPTO TRADING

I notice that many have the notion that you are left to the market when trading crypto.

When you buy Bitcoin, you can just wait and pray that the price will go up.

And then you pick up the profit.

Yes, this can be one way of trading … but it is very unreliable and there is a high probability that you will lose all your capital.

It’s actually gambling.

When trading crypto, or even forex (fiat vs. fiat trading), you can use at least three important safeguards that allow you to trade successfully in the long run.

Crypto or forex trading is actually about the logic of winning more trades than you lose.

And with the one you lose, you minimize the loss.

That the trade would never be lost is practically impossible.

There are losses in trading, but it is important that there are more gains in trading.

There are at least three safeguards to help you mitigate the loss of lost trades and increase the gains.

# 1. Gadget market analysis

Every serious trader does crypto market analysis.

The analysis assesses the state of the market, where the trend will turn and where I can enter or exit the market.

The analysis is performed with graphs, these are programs that are built into the trade platform.

You need quite a bit of knowledge to use such graphs, as it is necessary to have a good understanding of at least the basics of market movement.

# 2. Stop-Loss function

Once we have done the analysis and determined the entry point (price) for buying or selling the currency, we have the option of using the Stop-Loss function.

This allows us that in the event that the market turns in a direction we did not expect, so we lose the trade, the SL function interrupts the trade at the amount we set at the beginning of the trade. As a fuse.

So Stop-Loss allows us to liquidate the trade in an unwanted trend and thus reduce the loss.

The Stop-Loss feature is a tool that a serious trader always uses.

# 3. Risk management

When trading crypto or forex, the rule is to trade the amount you can afford to lose.

This is usually up to 3% of our portfolio.

It is important from us to respect this rule, because it allows us to trade in the long run.

If we lose the trade in which we put 3% of our budget, this loss still allows us to trade on.

Not immediately … it is necessary to make an analysis of why the trade is lost and on the basis of this and other analyzes to find a suitable time and point of entry.

These are at least three safeguards that allow us to trade with the crypt in the long run.

However, I would like to point out another misconception about the crypt, which is that you can make money with it quickly.

This notion is wrong.

There are no quick earnings in the crypt. They can only be happy coincidences. But you can’t build long-term success on these.

Those who trade the crypto well have invested a lot of time, money and will to gain in-depth insight into what the crypto is, what the financial market is, how it behaves and how to perform analyzes that allow you to “quick” earnings.

So quick earnings come after months and years of learning and trading.

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