Buying Bitcoin may sound daunting for a lot of first-timers, but you don’t have to do it alone! Though we’re not able to sit next to you and tell you exactly which buttons to click, we can offer invaluable insights from some of our most seasoned users. Raymond, an experienced trader from Nigeria, has been in your shoes and is ready to share with you some of the most important lessons he’s learned. Make sure you read up on his advice before you make your first BTC purchase!
What trading Bitcoin really means
If you’re joining the crypto world thinking that it’s a shortcut to wealth, think twice.
“If you’re a new trader, your primary objective should not be to make profits—it should be to understand how the system works. Otherwise, you will find yourself in an endless cycle of profit and loss.
Trading is a 24-hour job. Only those who put in the time will make ends meet. You should put the majority of your time into understanding your trades before executing them,” Raymond commented.
Raymond also highlights that the crypto industry is a market for both takers and makers—you’re either giving to the market or you’re taking advantage of it. Although there’s not really a textbook that tells you exactly how to trade, it may be reassuring to know that even the best traders out there started from zero and, perhaps not surprisingly, still make mistakes.
What you should do before splurging on BTC purchases
You can find an abundant amount of resources on how to buy Bitcoin on Paxful online, but Raymond has generously shared his take on what you should do before diving deep into the crypto scene. These include:
- Looking for a seller with good reputation – The higher the number next to the green thumb up, the better.
- Purchasing small amounts from several sellers – Get a good understanding of how real-time trade flow works and build a good reputation for yourself. There’s no need to trade big from the get-go!
- Reading the feedback your trade partner’s received – Get to know how other people feel about this trader’s trading attitudes and habits.
- Reading the trade partner’s terms and conditions carefully – Be as informed as possible when you enter a trade to avoid getting into a dispute.
- Choosing a different offer if you’re not satisfied with the seller’s terms – Only trade with people you want to trade with. There are no strings attached here!
How you can reach your profit goals
Even though profit-making shouldn’t be the primary objective for new traders, we all know that that’s the eventual goal for many experienced traders. It’s important, however, to stay realistic with how much profit you want to make. (Sorry to disappoint, you’re probably not going to make a million dollars in three days!)
The first thing you can do to stay realistic with your goals is by setting an achievable profit margin. According to Raymond, many successful traders keep the margin simple and compounding.
“Let’s say your daily target is to make a 5% profit. Instead of making a single trade and waiting a whole day to trade at a 5% profit margin, try trading five times with a 1% profit margin.”
Instead of dreaming about making a million dollars in three days, think about how much you can accumulate by making 50 USD a day, 365 days a year, 5 years in a row (we did the math for you—that’s nearly 100,000 USD in profit!). That is reality and should be where your focus is.
You know what’s best for you
Every journey begins with a single step. If you’re worried about losing money, try trading with small amounts until you get the hang of it. There’s no rush when it comes to trading and in fact, the more patient you are with learning how the market works, the better.
In the crypto world, there is such a thing as “too good to be true.” If you ever happen to meet a trader that offers you unrealistically good margins, think twice! Always remember to stay realistic with your goals and that wealth doesn’t usually come knocking at your door.