How to be a successful cryptocurrency trader in 2020

Before you start a cryptocurrency exchange with charts, let me remind you of a few essential things. First, invest only what you are willing to lose. Bob Loukas, a recognized crypto influencer, recommends that you not spend more than 10% of your total capital in cryptocurrencies. Loukas has also remarked several times that this percentage might vary. Mostly on your age and the type of commitments you have. Younger investors can generally risk more of their assets without having a catastrophic impact on their lives. However, there is a more important reason why it is recommended to invest only a small part of your assets. This is related to the second rule of cryptocurrency trading.

Investment strategy as a trader

Invest strategically, not emotionally! Emotions are your main enemy in cryptocurrency trading. If you decide to invest more than 10% of your total capital in cryptocurrencies, you do not necessarily go bankrupt when the market falls. Also, your positions shrink. In times of increased volatility, it will be difficult for you to keep your emotions in check. Loukas also emphasizes that the same is true when prices rise, and cryptocurrencies are in a bull market. The stress of waiting for a sale price can be higher than watching your portfolio drop to zero. In short, trading is not for the faint of heart.

As Baron Rothschild once said, you must learn to “shop when there is blood on the streets”. Also you should know when is the right time to sell. Timing is the hardest thing in any market. But remembering the following advice can help you trade.

The penultimate advice is the most important for your personal development. Get a basic overview of the market structure, what types of candle charts we have, which candles are bull, which are bears, and how supports and resistance work. For your trading, you can find information about various indicators such as Moving Averages, Stochastic RSI, MACD, or multiple data analysis models such as Stock To Flow model, Golden Ratio Multiplier, The Pull and many more. The more time you spend studying the market, the more confident you will be in the cryptocurrency trading.

Consider using new applications and platforms such as Bybit.

Bybit uses the classic macro-taker model. It distinguishes between orders that enrich the market and which, in turn, narrow it. Therefore, macro and taker orders are subject to different fees. If you create an order and increase your liquidity, you get a discount. At the same time, however, you must wait longer to complete the order. At least until a suitable counter-offer appears on the market. Yet, if your order reduces the liquidity, you must pay a fee. For example, if it is filled immediately because a counter-offer already exists on the market.

There are three types of trade orders on the platform. For the Market order, you only fill in the required amount of “Qty” currency. For the Limit order, you can also enter the required “Order Price” rate you want to buy or sell. The Conditional third-order serves as an automatic Market or Limit order, which is not executed until the market reaches the “Trigger Price” rate you set. For each order, you can also select the method of termination if the order is not executed immediately. The termination is offered manually or directly.

Now you are set to become a cryptocurrency trader. Here you can find the best cryptocurrencies for 2020 and some of the cryptocurrency exchange charts.