5 Tips for Cryptocurrency Trading in 2023

Bitcoin's fortunes are finally starting to turn, and some exciting new crypto trading platforms in the UK are on the horizon. But if you're like most traders, you might still be skeptical about investing in the sector, but worry not. This piece will give five tips to help you navigate the crypto industry's choppy waters. 

1. Do Your Research

Doing proper research is the first step to getting any project right, and crypto trading is no different. Gone are the days of making investment decisions based on hype and what's trending around crypto. On the contrary, you need to understand and support the vision and mission the platform you're investing in has, as well as have some certainty it's not just a scam. 

Running a background check on the platform's founders and looking at their track record will help you avoid investing in unscrupulous schemes. It will also give you some insight into their motivations and assist you in deciding whether to support them and their crypto idea or not.

Recently we've also seen a surge in crypto platforms that offer other services like cloud storage to give their tokens some intrinsic value. This means the crypto is still valuable even without a large consensus from the public. Conducting research and looking for such opportunities will help mitigate the risk of your investment dropping to zero.

2. Try Active Investing

One trend that led to many investors losing their crypto investment was buying the digital asset to hold so they could appreciate. But as we've seen, this exposes you to market volatility and the whims of those running the crypto platforms. However, if you trade crypto by buying and selling crypto as it fluctuates, it helps you take advantage of the market volatility instead of being its victim.

The good thing about actively trading crypto is that you can make money when the market goes down or up by placing short or long trades. You also have control over the decision that sees you make or lose money in the markets, unlike waiting for the market to appreciate, which is not always guaranteed. 

3. Invest What you can Afford to Lose

This is one of the immutable laws of investing in the markets, and more so in the crypto sector. The crypto market is highly volatile, and you can never predict with certainty how the market will react to different forces. As such, it's always prudent to only invest what you can afford to lose without affecting your lifestyle significantly. 

However, this is not to say that if you invest in the crypto industry, you will lose your investment, far from that. It just means the chances of losing it are high, but if you do proper research, have a sound strategy and stick to it, you can grow your investment. 

4.  Learn how to Conduct Fundamental and Technical Analysis

Fundamental analysis looks at factors economic and financial affecting and influencing the price movement of crypto in the market. On the other hand, technical analysis study's an instrument's historical data and looks at factors that influenced its price to try and predict its future movement. Understanding how to conduct these analyses on any crypto platform will help you make better investment decisions. 

5.  Bitcoin is King

Unlike all other crypto platforms, Bitcoin is independent, with no central authority benefiting or influencing its position in the market. It's also the only cryptocurrency still holding true to crypto's original mission of offering an alternative and independent financial system from the tradition. All other crypto platforms operate as the current financial system Bitcoin was opposing, and as such, they have the same biases and can be manipulated as before.

Bitcoin is the only platform without a central authority, and after enough people gain confidence in the network again, its price will rise. 

Neironix is not responsible for the safety of your funds and does not provide investment advice.