The period of time we are living in now is truly unprecedented in history, with events transpiring as a result of the Coronavirus that are essentially bringing normal life to a complete halt in almost every country in the world.
There are a number of essential things to remember as a trader during this uncertain period, and there are lessons to be learned from some of the major crypto trading platforms in the industry that can help to keep a steady level of perspective during this pandemic.
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#1: Act Smart
One of the great truths of any kind of financial trading is that there are 2 overarching factors that affect the market at all times, greed and fear.
What is typical market psychology is that when there is a large crash for our innate psychology to lead to large numbers of traders selling at the very bottom, however a reframing of perspective is required to make smart choices.
A better perspective at a point such as the one that we are currently in now is to see that this is a great opportunity to buy a lot of largely oversold and distressed assets such as oil, stock indices, forex, and even cryptocurrencies, with them being at the cheapest level that has been seen in many years.
#2: Analyse History
While it is normal to get caught up in the history of such a dramatic event as a pandemic, and that this is having an unprecedented level of impact on society, we can also look to previous similar events to getting some sort of insight.
It is important to remember that for all previous pandemics, including the likes of the Spanish Flu in 1918, there was a V-shaped pattern of a drop in markets (followed by a quick recovery) and that was mirrored by that being relatively steep levels of infection and then recovery.
It is also important to note that in no previous similar event the GDP of a country was affected in any kind of long-term significant way from pandemics, and that within 2 quarters on average we have seen markets return to normal or better than normal.
#3: Have the Right Trading Tools to Profit
During periods like this one of the most important resources to have in order to be able to reliably generate profit and monopolize on the situation is access to the right training tools.
Many cryptocurrency-specific trading platforms provide traders only with access to cryptocurrency markets, whereas platforms like PrimeXBT provide access to award-winning services that span across both the cryptocurrency market and traditional markets, with assets listed such as forex pairs, commodities, metals, and stock indices.
#4: Keep a Cool Head
One of the largest risks during such unstable conditions is the allowance of emotions to take over and to have a detrimental effect on the performance of trading.
It’s important to have access to a platform that provides powerful risk management tools and order types such as stoplosses and OCO orders, with PrimeXBT being a leading platform providing a wide range of risk management tools.
it’s also important to remember to gradually place trades without rushing into any large positions, and to develop a robust training plan before opening any positions.
#5: Stay Safe
And although we are talking about trading it goes without saying the most important thing to consider is the health of yourself and the people that you care about.
There of been dramatic correlations between areas where large numbers of the population have stayed at home in order to contain the virus, compared to places there people have ignored the restrictions, and what is overwhelmingly true is that it is important to remain at home as often as possible in order to secure not just your home, but also your community.
The silver lining in this situation is that forced lockdown allows for enough time to practice, research, and learn about the most effective ways to generate profit with global financial markets.
In Summary: Bitcoin and the Coronavirus
As with any other point in time there is substantial profit to be made by trading Bitcoin in the cryptocurrency market.
What’s different now is that many people who normally are working 9-to-5 are looking for new ways to earn an income after having the long-term financial stability threatened by the effects of the coronavirus lockdown.
While there are many more important points to remember during this period, the five points above are critical for all traders to remember.