5 Tips from Markets Legion for Anyone Just Starting with Crypto Trading
Deciding to get involved in the cryptocurrency market is an important step for any trader and probably the beginning of a long series of experiences, both positive and negative. The early stages are generally accompanied by enthusiasm and high hopes, however that doesn’t spare the trader from taking all steps necessary until desired results are achieved.
Markets Legion is aware that support needs to be granted and on top of the educational resources provided on its website, wants to share 5 insightful tips that act as a guide for those just starting with crypto trading.
#1 Begin with your education
Education is the foundation of any endeavor and diving in without a solid base of knowledge usually results in painful bad decisions, with potential negative financial results. To avoid this, beginners need to have a proactive approach and learn as much as they can about the crypto industry.
What is blockchain and how does it facilitate the smooth functioning of each cryptocurrency? What is the impact of crypto monetary supply on market valuations? Traders should not start trading without knowing some fundamentals, as well as understanding blockchain updates, crypto regulation, adoption, technical analysis, price action methods, and risk management models.
#2 Develop a suited trading strategy
A suited trading strategy means a set of rules to determine what cryptocurrency assets are traded, what type of setups is used, the period of the day that’s most convenient to trade, as well as setting up risk and portfolio management, trading review methodology, and objectives.
Without a trading strategy, traders are like a blind person walking into unknown territory. The marketslegion.com vision is to empower traders and help them develop winning methods, ideally avoiding most of the rookie mistakes.
#3 Respect risk management rules
Dealing with probabilities is one of the most important skills when trading the markets. Since it is impossible to have a 100% accuracy, risk management is what limits the downside and potentially increases the upside. Beginners usually have a lower trading accuracy and, when combined with aggressive risk-taking, the bottom line is not favorable. Markets Legion encourages traders to be “risk conservative” until they start to see positive results. In that way, traders learn more by trading real money without painfully large losses.
#4 Don’t overleverage
Volatility in the cryptocurrency market is already elevated and in combination with excessive leverage, it can lead to higher returns or higher losses. Markets Legion does not want customers to overleverage and because of that, enables access to a maximum of 1:5 leverage on its available instruments. At the same time, each trader needs to ensure an optimal available margin at any point, to make sure there is capital remaining even when valuations don’t perform as expected.
#5 Accept losses and learn from them
Losses are part of the process and regardless of how advanced a trader becomes, there will be occasions when trades end up in the negative. It isn’t be appropriate to try and avoid losses and traders should learn from them as time goes by. Markets Legion sees crypto trading as a marathon and would like all its customers to embrace mistakes and see what lessons can be drawn from them.
Markets Legion hopes that these 5 tips will make crypto traders aware of the most important things they need to consider during the early stages, so they don’t fall into the same traps beginners usually do. The cryptocurrency market continues to generate opportunities, yet preparation and expertise are needed to take advantage of them.
