CEX.IO company blog | What should a novice trader know in order not to lose their money?

Trading is a way of making money that has its own risks, especially when it comes toabout volatile assets likecryptocurrencies.AlexanderYanyuk, expertCEX Finance. IO Broker, gives advice on how a novice crypto trader should take their first steps.

If you don’t have any trading experience yet andIf you want to try your hand at cryptocurrency trading, then I would recommend starting with the spot market. This will allow you to get acquainted with technical analysis, develop your trading strategy and trading discipline, without exposing your deposit to high risks.

When determining the starting amount, it is worth following the rule that its loss should not affect your well-being in any way.It should also allow you to bid long enough for you to master trading tools and work out your trading strategy.That would be enough $100 to $200.At the same time, it is not necessary to strive to earn, as such an aspiration will beto negatively affect your psychological stability.protect and increase your capital when operating significant amounts in the future using leverage, i.e. using leveraged exchange or broker funds.

If your first experience is successful, then in the future you shouldanalyze the average return on the percentage you received when dealing with a small deposit, as well as set yourself a goal in real terms, which you want to receive in a year or a month.Let's say that your yield is 10% per month and you want to earn $1,000 each month.It is easy to calculate that in this case your initial deposit should be $10,000.But ideally, that is, with an even 10 percent income from month to month, your income will begrow as your deposit will increase.

However, there are no ideal cases, andyou always need to adhere strictly to the rules of your trading discipline, which is the main guarantee of your trading success in the long term.

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The CEX.IO Broker platform offers ample opportunities for trading both crypto and fiat currencies. Come to us, open an account and start trading now!