In the world of financial management, trading cryptocurrency is not for the faint of heart. It’s the kind of investment decision that carries a high level of risk with it – but the rewards can be just as high in turn. 

That being said, it’s only something to get started with if you’re 100% OK with losing everything and making nothing. 

And if that’s a decision you’re willing to make, the three things below are key to keep in mind when accessing crypto trading platforms and ensuring you stay safe doing so. 

 

There are Various Exchanges

 

There is no centralized trading platform in the crypto world. You can take your pick from various exchanges and even use multiple at the same time. 

This does mean you’re more at risk when you’re trading currency, but it also allows much more access to various new currencies, opportunities, and the chance for full control over your digital wallet. 

It’s usually best to use the exchanges that have the most activity, and more market share. However, always do your own research beforehand to see if you can genuinely trust the platform with your money and data. 

 

 

Keep Your Key as Private as Possible

 

If you’re not already aware of this, when trading cryptocurrency, you’ll be using a digital wallet to both send and receive any of the currency you’re interested in. 

This wallet is accessed using a personal key, and whoever knows this key can get into your wallet. The key will be randomly generated for you upon opening the wallet for the first time, so you can be sure it’s a key that no one else has seen before now. Try to keep it that way!

You should also keep an eye on which platforms you allow access to your wallet. They’ll need this information to allow you to trade, but like we mentioned above, some platforms are less legitimate than others!  

 

Take Your Time with Trades

 

Rushing into a trade is a surefire way to lose money. You should never dip in and out of a currency on a whim. Try to take your time with deciding what to trade and when, even if the market volatility is telling you to put all in or take it all out now. 

Remember, when it comes to cryptocurrencies, it can be hard to see what risk you’re playing with. You might not even know how much of a currency you’re either investing in or selling. Trade sizes are determined by ‘lots’, rather than any number values. 

Tools can help you to temper yourself here. Manage your risk during a trade by using a Lot Size Calculator for MT4, if that’s the platform you’re interested in trading on. Not only will this make it easier to understand the value of the trade, but knowing the conversion between lot and currency will help indicate how your planned move could affect your portfolio overall. 

Thinking about trading crypto? Keep these simple rules in mind. 

 

(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)