Get your token prelisted on ETERBASE

Crypto Trading Tips Series Part 3

Following on from part 1 and part 2 of our Crypto Trading Tips Series, ETERBASE brings to you the next installment in part 3.

Trading safely is something we place a lot of emphasis on here at Europe’s Premier Digital Asset Exchange, and we hope the information found within this trading series goes some way to helping our customers get more from their experience with us.

This series has proven useful to beginners and experienced traders alike, so be sure to check it out!

Chart Patterns

The history of crypto would lead some to suggest that attempting to apply technical analysis of patterns to the crypto markets may not be worth exploring, but the truth is that by being able to read chart patterns you’ll be able to spot trends that others won’t.

Chart patterns during a bull market are relatively simple to read, and can usually be grouped into three different categories.

Cup with handle is where the candles that you see on a chart have significantly dipped for a period, only to then begin a sharp rise upwards, followed by a secondary ascent shortly afterward.

Such a pattern could represent an ongoing rise in value.

Measured move up is where you’ll see the candles begin to rise upwards, followed by a pause, a move sideways, then a further trend upwards.

The pause which pushes sideways for a period is what signifies this as a more bullish action than a simple ascending pattern. An asset that ascends continually with no break can often be a sign of market manipulation, while the rise, then pause, followed by a surge can often be the sign of an asset worth investigating closer.

Finally, three rising points. When you see the candle rise, then dip, followed by a rise, then another dip, then eventually rise once again to a level higher than the previous times this is considered a potential asset worth looking at.

When it comes to a bear market, you should take the trends mentioned above and apply them in reverse. For example, inverted cup with handle, which is where the candles rise significantly only to then fall, with a following fall that is even steeper.

The ETERBASE exchange will provide you with quick, up to the millisecond trends.

Understanding the market

The technical tips we’ve provided you with thus far will come in handy for traders of all levels, but on its own technical analysis is never quite enough.

Despite what some people may tell you, there is no “get rich quick” way of trading. You’re going to have to put in the work, which includes reading into the values and plans for a particular coin or token.

Even with the major players such as Bitcoin, Litecoin and Ethereum, you still have to ask yourself some questions before investing, including their plans for the future, their public image, who their rivals are, and so forth.

Ideally, you’d know the answers to questions like these before investing, and if a friend were to ask you “why did you invest in Ethereum?” for example, your response should amount to more simply parroting a system you’ve been told to try out.

Research the foundation on which these tokens and coins are built on, and make sure they feel right to you before you part with your hard-earned funds.

We go into understand the market a whole lot more in our comprehensive free guide, which is available here.

Mindset

This is a factor that is easily lost in all the discussion about trading bots, systems, and research.

You’ll find that the majority of successful traders share one common trait. A great mindset.

Many traders fall victim to the one most negative factor that can affect even the best of traders.

Emotion.

Quite simply, you need to learn to keep your emotion in check. Someone who trades on emotion is ultimately destined to fail for the most part, as their judgment becomes clouded.

It may sound crazy, but any trader can handle the emotions they feel when they make a successful trade. Where the cream rises to the top is in how we deal with a losing trade.

One common mistake that rookie traders make is the desire to “win back your losses” as quickly as you can. This usually comes as anger and frustration bubbles to the surface following a losing trade.

The sooner you learn that losing trades is part of the game, the better. Everyone loses a trade now and then, it happens. Some traders even go on a losing streak.

If you’re relatively new to the game, the chances are good that you’ve at least heard of the outlandish success many traders experienced in 2017. This was indeed a golden age for traders of crypto, but those days are long gone.

Will they ever return? Well, you can never say never, but for the time being it’s best that you do not try to replicate the success that some traders had during that period.

Okay, well that does it for part three of the trading guide, we’ll return next week with more tips and advice for those of you who are looking to take full advantage of the ETERBASE trading platform!

Much of this information can be found in our FREE trading guide! We also expand on a lot of the tips you’ve read thus far, so be sure to check it out!

< Back to Blog

Click here to get a free copy of our Crypto-Trading Guide

Download E-Book

Sign up

Become eligible for our limited Early Adopter Membership

Thank you! 
Oops! Something went wrong while submitting the form.

Or follow us on social media