Those who trade in cryptocurrencies must have a strategy to prevent emotions from affecting them if they lose money. Big investors move the emerging market because they work with technology instead of emotions.
Emotional maturity is crucial for trading Bitcoin (BTC) and other cryptocurrencies since it allows earning profits. Stress and feelings can lead to exit the market, where investors can make or lose money.
Several professional cryptocurrency traders recently agreed that leverage is one of the most exciting moves. Those experts pointed out that this type of investment makes it possible to trade with borrowed money.
When trading, investors should have a strategy to prevent emotions from affecting them if they lose money. Andrés Urquiola, the CEO of the firm Val-U, stressed that the best traders are those who are colder.
Although he sees leverage as beneficial, it could be detrimental for new traders. He warned that a leveraged investor who manages risk wrongly could blow up the account.
In the case of Joe, a professional trader, and CEO of IKAGI academy, he thinks that leverage is excellent. Furthermore, he explained that the success of that market is 99% psychological and 1% technical.
He pointed out that leverage does not define the amount of money to earn but the risk assumed for that trade. He added that various psychological factors contribute to investment failure, so the person should control emotions to control risk.
Big Players Make the Market Move
Urquiola stated big players, like whales and market makers, move the cryptocurrency market. Since they hold large amounts of money over the long term, they can manipulate the market.
For that reason, the executive referred to emotions again, explaining that psychology drives strategies and performance. However, he said that big investors move the emerging market because they work with technology instead of emotions.
Joe believes that the market is supply and demand, so he sees it essential to distinguish between trading and investing. He said that many people try to be traders and investors, which he considers inadequate strategies.
The Way to Start in Cryptocurrency Trading
The specialists agreed that it is essential to learn the market basics to start trading. Urquiola recommended not beginning by seeking to make money but with the basics since it is transversal.
Joe emphasized that the person must first define whether he is an investor or a trader. He also finds it crucial to understand what candlesticks do and know the most common patterns. He said that it is unnecessary to dig too deep at first as experience will make that possible.
The trader advised focusing on a single investment system, getting used to it, understanding it, and putting it into practice. He commented that the market would show the person what would go best with his personality.
Venezuelan developer and trader Franklin Noriega explained that it is essential to define personal intentions to start trading. He suggested trying out candlesticks and other indicators with a demo account without real money. He said that the investor should determine what he wanted to achieve after acquiring the knowledge.
In conclusion, the experts consider that cryptocurrency trading has marked differences and similarities with traditional trading. For that reason, they recommend taking it seriously and not lightly, as is often the case due to lack of regulation.
By Alexander Salazar
