If you want go into cryptocurrency trading, there are fundamental principles to know. These principles must be known by heart and will guide you throughout your life to trade in any field.
Whether in the stock market, the Forex market, or the precious commodities market, you need to know and apply these principles.
In the field of cryptocurrencies, it's exactly the same thing. This market is new and has no history of several decades like other markets, these principles are even more important.

1. Do not invest more than you can afford to lose
This principle is often considered the most important. It appears in all online trading or betting sites (Disclaimer). This is because when you trade, you are constantly at risk. The basic definition of an investment and placing money somewhere hoping to reap the rewards. You can invest in money, but also in people. When you hire someone, you invest in him, but you do not know what his performance will be in relation to the results of your business.
You still invest in this person because you feel that its potential is worth it.
In cryptocurrencies, it's exactly the same thing. You invest in it, because you think that the potential of Bitcoin and crypto-currencies are worth it. Therefore, it must be kept in mind that if it does not work, it is not the end of the world..

2. You did not lose until you sell
This principle is sometimes difficult to understand because when we find ourselves in front of our trading platform with a negative position, we have the impression that we have lost money. This sentence takes all its meaning “If I do not sell, I do not lose.” To be more precise, it would be necessary to say "if I do not close I do not lose", because in the trading, there is the possibility to bet on the rise or fall of the market.
However, at the end of the day, one thing to remember is that the sum of all trading activities = 0.
It is different from the casino or when you sum up all the activities it is always the casino that is positive.
Trading is therefore only an activity of exchange between individuals where those who have the best intuition and the best analysis are the most rewarded.

3. Technical analysis is wrong 45% of the time
Many people love talking about technical analysis when it comes to trading. We think that technical analysis is like a crystal ball that allows us to know the future with certainty.
But that's totally false, because technical analysis is wrong 45% of the time. Statistics have shown that it is more likely to be a good trader through intuition and market psychology than through technical analysis.
In the field of crypto-currencies, curiosity and fear are the two key elements of the market evolution. If we want to position ourselves in this market, we must of course also use the technical analysis, but it is not enough.
Technical analysis is therefore complementary to the analysis of market psychology.

4. Your emotions are the key to your success
This part is so important that it will surely undergo a complete training because the money creates strong emotions.
If we take a picture of you when you are given two tickets of €20 and just after two tickets of €200, you will see that your face will show two totally different emotions.
In trading it's exactly the same thing. If you see an added value of €20 then €200 or €2000 your emotions will not be the same, because the fact of reading a capital gain of €2000 necessarily causes something inside you.
On the other hand, if you see € -20 then € -200 then € -2000 to display on your account, that's another story.
I hope you see where I am coming from. To succeed in trading, you need to detach yourself emotionally from the money.

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