How To Make More Money While Trading LTC To BTC
This beginner’s guide is about how to make money trading LTC to BTC. We will give you specific tips to help you in your daily trading.
Follow the plan or find a reason
Any deal needs a reason or better several. Find it, or don’t open a trade at all. Of course, a clear strategy is even better than the right mindset, but if there is neither strategy nor the right mindset, then trading turns into gambling.
The altcoin market is ruled by “whales” – large players who place hundreds of bitcoins in limits, filling order books. They wait patiently for the smaller fish to make mistakes. Don’t live up to their expectations. Sometimes there are days when it is best not to trade at all – it saves you money.
Define clearly your goals
To make a profit while trading LTC to BTC, you need to decide on the targets and ranges where you will leave the trade at the stop loss, which limits the level of losses. No need to look for your favorite coins – it often happens that a trader fails when he begins to “admire” a coin. It is wrong to trade just because you like this coin.
FOMO – a trader’s worst enemy
Avoid FOMO, the loss of profits syndrome. It is difficult to be calm when the rate of an unknown coin jumps by tens of percent per minute. FOMO begins when, at the sight of a green candle, you rush to make wrong decisions.
You need to understand that most likely, at this very moment, whales are simply waiting for an influx of small buyers to sell the coins they bought cheap. At the time of pumping, the coin is expensive, but those who buy it at this moment are not comparable in volume to whales. As a rule, after a large explosive growth, the same grandiose fall follows.
Price correlation BTC to LTC
Bitcoin volatility drives the volatility of the entire crypto market. It is important to understand that the rate of most altcoins, including LTC, is inversely dependent on the rate of the first cryptocurrency.
The faster BTC grows, the less money is put into LTC and other coins and vice versa, when bitcoin is flat, small cryptocurrencies have a chance to significantly increase their capitalization. This is called the altcoin season.
Tips for trading BTC to LTC
- Fee. A number of sites take a lower commission if you work with limited orders (maker). If you work in markets, the commission will be higher (taker).
- Don’t trade emotionally: never start trading under pressure. Emotions almost always lead to unprofitable trades. It’s like third-party interference in a video signal, noise that you can never recognize in a realistic time frame. Better calm down and only then trade.
- Buy on hearsay, sell on facts. The time when everyone starts talking about an asset is the most appropriate time to exit the position, not to enter.
- Murphy’s law works against you. You have traded well, but once you sold your coin, it starts to grow again! Once again, never enter a position on emotion. As long as there is profit, you are doing well. Better think about another option to enter.
Crypto trading is challenging but very promising. It requires you to be more disciplined and stick to your plan. If you learn to control your emotions and effectively analyze information, then you have every chance to succeed in this area.