Crypto tips for 2022: Best advice to start trading this year

2021 has been a great year for cryptocurrencies. A recent study made by the consulting group Gartner revealed that the growth of interest in digital currencies has picked up since the start of the year. According to the same study, this will lead many companies and businesses to push for ways to accept and integrate cryptocurrencies into their business models. Digital assets will be used by these organizations for different transactions: as payment methods, as a way to store and secure value, or, to look for high-performance investments while trading.

And when trading, the first reflex for beginners is to look for Bitcoin. The most famous cryptocurrency, one that has reached such heights in terms of value that it has made a country like El Salvador officially accepts this cryptocurrency in its economy.

Traders can even find online platforms that recommend the best bitcoin casinos where players can make deposits and withdrawals in bitcoin currency. The website includes a detailed guide on how to use your cryptos on these platforms. Many online casinos have taken bitcoin under their umbrellas in order to attract clients that are interested in a type of entertainment that’s crypto-friendly; additionally, transactions are anonymous, which makes it popular.

So, if your new year’s resolution is about entering this fascinating universe, then carefully read the following recommendations that we have for you. You won’t need in any case any advanced tools or great sums of money to begin trading so don’t miss these beginner tips.

Plan for long term investments:

Let’s take the example of Bitcoin once again. The daily price volatility of this crypto is around 64% on an annual basis. The S&P 500 has a 17% variance in the same metric. This means that cryptos are very volatile by nature and so it’s important to invest in thinking in the long term. You might invest and the next day experience a loss of 25% in value. Don’t be discouraged, as the next rise could double your investment, and so on.

The recommended period of acquisition is around 2 years. Let’s say you have 1000$ to invest. Analyze carefully how much of this money you’ll need in the next 2 years before investing. Think of big payments that you have to make in the next couple of years and only assign the money you can freeze for a long period.

Choose an average budget:

The crypto universe can be very overwhelming. Every week you have digital assets that start giving financial performances of over 50% and this means that every amateur trader will jump in and invest huge amounts of money in any trending currency.

The Dollar-Cost Averaging (DCA) is an investment strategy in which you divide the investment across periodic installments. The objective is to reduce the volatility of a given investment.

Let’s take the previous example. If you finally decided over investing 800$ of your 1000$ savings, then a good idea would be to divide your investment in terms of 100$ or 200$ a week. This way, you can tackle different cryptos and try to have independent movements in your portfolio.

Hold your position with winners:

Remember the nature of cryptocurrencies: Volatility. This means that targeting a 25% or 30% profit won’t likely cover your past losses or even the losses in the future.

The recommendation here is to try to avoid selling cryptos on the rise, the famous HODL expression. If crypto is continuously growing its value, then consider adding more money to it. You’ll eventually get profits of more than 300% if you’re brave and hold your position. These are the profits you should expect when entering the crypto markets. So don’t be afraid!

Mistakes are a part of the game:

Mistakes are a part of trading. It’s not easy to read any market, and much less such a young and volatile market as one of the cryptos. When you make such a mistake and lose value or a winning position, don’t try to compensate by increasing the amount invested. Trading is also about controlling the emotional rollercoasters that this activity can cause on every person.

So, this is also a psychological recommendation rather than financial or technical advice. If you lose big, step aside and rest big. The impact of a first negative hit can affect the way you analyze immediate investments. In the end, successful traders are the ones who survive the longest in the run.

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