In a time of economic uncertainty, where it seems like the wheels of commerce have ground to a stop, many of us are worried about how we’re going to adapt financially. Over the past few weeks and months, we’ve all had to learn the importance of staying on or under budget, of keeping an open mind when it comes to making and saving money. As such, many of us have become much more willing to step out of our comfort zones and to try new things. Still, there are many who have still yet to warm to the idea of trading in cryptocurrencies such as Bitcoin and alternatives like Ripple, Litecoin or Ethereum. However, there are many reasons why trading crypto can be more reliable and efficient than trading in foreign currencies (Forex) stocks or shares. 

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Unlike foreign currencies, the value of cryptocurrencies isn’t tied to the economic success or failure of one nation and are theoretically recession proof. This is why many expect cryptocurrencies to be a life raft for investors in this time of economic uncertainty. 

However, there’s a right and a wrong way to trade in crypto. Use these tips to find success and insulate yourself from risk… 

Do your research and dispel the myths

More than any other commodity, crypto is surrounded by a haze of myths, half truths and outright smears. In order to make informed decisions, one of the first things you’ll need to do is some research into the nature of crypto and dispel the myths that have been disproven time and time again, yet still persist to this day. 

Here’s a post we did on this exact subject which will hopefully be a useful starting point. 

Choose the right platform

The trading of cryptocurrencies requires a dedicated platform. But don’t make the mistake of assuming that one platform is as good as any other. 

When you’re trying to learn more about Bitcoin trading, you should also take the time to learn what you should look for in a platform. You need to look for a platform that has low transaction fees, multi-layered security and instant verification for fast and secure transactions. 

Only bet what you can afford to lose

It’s important to start out by investing small. Especially when you’re getting to know the crypto markets. Only ever invest what you can afford to lose. Of course, that doesn’t mean that losing is inevitable, but there’s nothing more foolhardy than betting the farm on a red hot tip that never pans out like you expect it to. A great way of avoiding losing money is by getting to know the contracts for difference of the price of the base asset. This way you can make an educated decision on your trading.

Don’t keep all your eggs in one basket

In this respect, trading in crypto is just like trading in anything else. Diversity is the key to success. Just as property or stock investors thrive in proportion to their diversity, remember that a diverse crypto portfolio is the best way to find balance. Even if one currency is doing extremely well at the moment, that’s not an invitation to put all of your eggs in one basket. By hedging your bets you can insulate yourself from risk while still making reasonable gains.