Don't Forget The Number One Rule When Trading Cryptocurrencies!

The Cryptocurrency market has exploded over the past few weeks, with well over 10 billion added to the entire Crypto Market capital.

But as more people try and jump on the bandwagon, more and more are suffering severe losses and in most cases this is due to failing to comply to the number one rule of trading.

Buy Low and Sell High.

When you see your current asset begin to plummet, its far to tempting to sell and jump ship to another asset which is making substantial gains, then more often than not you'll see your new investment begin to level off then drop as it corrects. Meanwhile your old coin of choice begins to pick up pace again, then you repeat the process back to the old coin.

You can easily end up loosing thousands by jumping backwards and forwards as your actions are simply controlled by the panic impulse.

The reason why those who are trading with huge amounts of money (whales) find trading far more profitable is because when they see a decline in a particular asset they do not have the 'panic' impulse us poor folk have. Therefore they can just wait for their investment to rebound and gain ground again.

Likewise, they also do not have that urge to hold on to their investment when it's rallying, missing out on a few thousand is nothing substantial to them, so they sell once a set profit is made regardless of whether it had more to gain, and then reinvest their profit elsewhere.

I've been guilty of the above mentioned scenario so many times and in all but a few cases my panic impulse cost me dearly.

I personally recommend anyone who's attempting to make a little money on the Crypto-markets to keep the majority of their funds in the more established and sustainable coins, i.e Ethereum, Steem, Bitcoin (of course), Ripple (maybe), Zcash, Dash e.c.t.

Then if you fancy a little day trading with some 'pump and dump' coins just use no more than 20% of your funds, don't get greedy, stick to small gains and if your trade begins to drop rapidly don't panic. Generally most coins which suffer a mass pump will do again in the future. But if you can't afford to loose it, well maybe its best to make a quick sell back into Bitcoin or cash out.

Remember, Buy low - Sell high and NEVER react on panic impulse - it never ends well.

Follow me and I will follow you .