Navigating the world of crypto can be a daunting task if you are a beginner in trading. There certainly are many opportunities for profit and gains, but in such a young industry, due diligence is key.
Innovation is the rule in the technology space and the hype around cryptocurrencies, NFTs and DeFi projects is real. However, for those who are still new to this universe, information and education is key to success. As with any investment, having a game plan and a strategy is the best way to make sure you achieve the results you expect.
In the latest #FinancialFox episode, our host Steffy spoke with Dirk Hartig, trader at PrimeXBT to discuss the best strategies and tips for investing in the crypto industry. Here we highlighted the best pieces of advice from Dirk for you to start your journey in crypto:
- Diversify your portfolio: This is a well-known rule in traditional investment circles, and with crypto is no different. It is important to have different coins and projects in your portfolio and never place all your bets into one single project. For example, it is a good idea to invest in the big names Bitcoin and/or Ethereum, as well as altcoins.
- Do not let your emotions take over your decision-making: Dirk says that getting emotionally attached to coins or gains can damage your prospects. Keep your mind clear and objective when trading.
- Set up stop-loss mechanisms: Despite being quite controversial, stop-losses are great mechanisms to limit your loss when prices are going down, especially for beginners. Stop-losses are even more important in the crypto market, says Dirk, considering that it is still a very volatile environment and sudden moves could mean big losses.
- Don’t trust social media hype blindly: Crypto communities are very active and loyal, so many of them will have a strong social media presence. However, this does not mean that the project is completely reliable and successful. It is important to look beyond social media feeds and research the projects that interest you most and think deeply whether this project is offering value.
Make sure to watch our #FinancialFox episode with PrimeXBT trader Dirk Hartig
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