If you are new or a beginner in crypto trading, you need to be very careful to avoid costly mistakes.
Some tips for beginners:
- Follow educational courses: Binance Academy offers educational materials that can help you better understand crypto trading.
- Focus on spot trading: For beginners, it is recommended to trade in the spot market because the risk is lower.
- Be cautious with futures trading: If you decide to trade in futures, you should be aware that the risk is much higher.
Investment strategy:
- If you plan to invest $100, you can divide it like this:
- $80 in spot trading: To reduce risk.
- $20 in futures: Always limit your futures investment to 20% of the total investment to better manage the risk.
- Be mindful of the margin ratio: In the positions you choose to trade, you should invest so that the margin ratio does not exceed 5%. If it exceeds this percentage, your investment can be liquidated quickly.
- Use stop loss: It is important to use stop loss to protect your investments. The exact percentage for setting the stop loss depends on your trading strategy, but a common practice is to set the stop loss between 1-5% from the entry price.
Overall, consistency and capital protection are the keys to success for beginners in crypto trading.
This is my personal opinion from the experience
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