CRYPTOCURRENCY TRADING STRATEGIES AND TIPS ON HOW TO NAVIGATE VOLATILE MARKETS.

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Good day to you all members of this wonderful, you know who it is, it is your favorite blogger @awesononso after making my other post about the types of cryptocurrency wallets and their security measures it was my hope that you had enjoyed reading it, I decided today to write about and make this post about. cryptocurrency trading tips and strategies

Being a trader of cryptocurrency there are many lucrative opportunities open to us but we all know nothing good comes easy, so with these opportunities come incredible risks especially in something every trader knows as a volatile market and that is the problem and issue my post addresses.

How navigate and manage these risks and keep it at a minimum in order to be able to achieve success as cryptocurrency trader, the tips and strategies are given below;

1. Understand and master the market dynamics: For us to begin our journey or the journey of cryptocurrency trading the first step will be understanding and learning the dynamics or basics, the factors that cryptocurrency trading is built on and is responsible for the smallest and biggest aspects of it.

Some of these factors include; concept of demand and supply, analyzing market trends, news and events, technical analysis indicators.

2. Develop a trading plan; As a cryptocurrency trader after learning the dynamics of the market it is important that you create or develop a trading plan.

A trading plan to a trader is like a comprehensive document that outlines a traders approach to trading the cryptocurrency market, it also includes his goals and objectives, market analysis, entry and exit strategy,risk management, position sizing, trading strategy.

The developing or development of a trading plan is crucial and when used consistently it ensures that as a trader you maintain focus and discipline even when uncontrollable or unforseen circumstances causes us to be emotional hence impairing ones judgement and that it where the trading plan comes in, it contains already made plans when you were fully focused for when loss or profit causes you to loose that focus.

3. Practice risk assessment and management: As cryptocurrency trader who wants to be successful or even as sensible human involving in any business as volatile as cryptocurrency trading you should know when and how much to risk and when to cut losses so that even when you trade the market into loss you can live or survive to trade another day.

In order to minimize and manage risk one can try or consider using the technique of position sizing or risking a pre fixed amount of capital per trade.

4. Make use of stop loss orders: Stop loss order is a cryptocurrency trading tool that allows you manage and minimize loss in the market. This order works by triggering a sell order automatically when price of the traded cryptocurrency reaches a certain price.

5. Stay informed and continuously educate yourself: It is important that as cryptocurrency trader you take interest in things happening in the market and pay attention to the news and events and also any new development that affect or changes price in the market.

The market is also ever evolving and changing and inorder for us not to loose our grip as traders of the cryptocurrency market it is important that we continue to educate ourselves by what ever means we might have at our disposal.

Conclusively being a cryptocurrency trader and trading a volatile market it is important and required of you to good strategies in risk management, trading plan, market analysis and consistent learning.

Also remember to apply discipline, consistency and adaptability to the different types of trading techniques you use.