Tips to overcome crypto trading fear
The cryptocurrency market continues to develop and grow. The number of cryptocurrencies and blockchain platforms is increasing, and new projects and applications appear every day. Most large companies and financial institutions are also becoming interested in cryptocurrency and blockchain technology, which could lead to further market growth. Despite this, cryptocurrency investments are still highly questionable for many people. In this article, we explain what you can do to stop being afraid of the crypto market, because most often the fear is associated with the unknown consequences and risks.
Get the basic information
The field of cryptocurrency and cryptoinvestment is quite confusing even for experienced investors. It requires maximum immersion, study and analysis, but at the moment, many platforms provide free materials that allow you to learn the essentials of crypto trading. Through these, you can learn how the crypto market works, what it is required to start investing, and what is the optimal strategy for a beginner to choose. Ongoing education is an essential part of cryptocurrency investing, as changes in the market and development of crypto technologies are extremely dynamic. For example, on the ECOS platform (Blog, Telegram, YouTube and so on) you can find a lot of content about cryptocurrency, what is mining and bitcoin, as well as investing in the crypto market. If you start to study up-to-date information, there will be less doubts and you can feel more confident about investing in crypto.
Make an investment plan
Before you buy any asset, you need to make a plan. Your plan will be a necessary tool to avoid mistakes and emotional decisions. When making a plan, you need to determine the purpose for which you decided to invest in cryptocurrency, and how quickly you need to make money from investments. From this you decide on the strategy.
Here are some of them:
- Long-term investing: This is a strategy in which an investor buys a cryptocurrency and holds it for a long period of time, expecting its value to rise.
- Short-term investing: is a strategy in which an investor buys a cryptocurrency and sells it after a short period of time, usually no more than a few days or weeks.
- ICO investing: is a strategy in which an investor buys tokens of new cryptocurrency projects at their initial coin offering (ICO) stage with the hope of increasing their value in the future.
Based on the chosen strategy, you can decide what crypto assets you need in your portfolio
Choose the right company
When choosing a company for crypto investments, several factors should be taken into account. Explore the history of the company, its reputation and customer reviews. Make sure that the company provides a high level of security for your investments and personal data. Make sure that the company offers access to a wide range of cryptocurrencies, including those that you want to purchase. The level of customer support. Make sure that the company offers a high level of customer support and is ready to help you with any questions or problems. Check whether the company is regulated by the relevant authorities and has the necessary licenses. It is also important to pay attention to the timing of the company’s work in the market and its financial indicators. For example, ECOS has transparent and accessible information that a novice crypto investor can easily verify. Also, novice players in the crypto market need the support that ECOS provides to clients in order to reduce risks and help them understand the crypto currency market
Make the analysis
Investors use the following types of analysis to select crypto assets and reduce risk:
- Technical analysis of cryptocurrency is a method of analysis based on the study of price charts and other technical indicators such as trading volume, moving averages and indicators. The purpose of technical analysis is to identify possible entry and exit points, as well as to predict the future behavior of cryptocurrency prices. Technical analysis can be used as a standalone method of analysis or in combination with other methods such as fundamental analysis or sentiment analysis.
- Fundamental analysis of cryptocurrency is a method of analysis based on the study of fundamental factors that can affect the price of a cryptocurrency. These factors may include the number of blockchain users, the methods of using cryptocurrency assets, the team of project developers, the economic situation in the world, technical parameters, interest in cryptocurrency on the part of users. The purpose of fundamental analysis is to determine the real value of a cryptocurrency and predict its future price based on these characteristics.
Keep track of deals
After buying assets, it is better to have a transaction log in order to keep track of the effectiveness of your decisions and investments in a particular cryptocurrency. This also allows you to make more rational decisions about your next moves and not to panic during market changes that cannot be avoided. Transaction log also allows you to correlate your actions with your previously chosen strategy.
Despite the tools listed earlier, in order to overcome fear and panic during crypto investing you need to be patient and not make decisions based on emotion. In order to avoid the pressure of news and forecasts, you can turn off social media related to investment markets for a while and wait out the period of investor panic.
As in any new field, fears and concerns can be overcome with a gradual exploration of the issues that cause the most doubt. The above points will help you navigate the complex, dynamic world of crypto trading and familiarize you with the basics to buy your first assets and try opportunities in emerging crypto investing.