Zonda
  • Trade
    • Individual Clients
    • Business Clients
    • Affiliate Program
    • Zonda powered by ZEN
  • Track
    • Currency
  • Learn
    • Academy
    • News
    • Blog

  • Zonda Pay
  • About Zonda
    • Who we are
    • Career
    • Legal
      • Zonda Exchange
      • Zonda Pay
    • Safety
      • Zonda Exchange
      • Zonda Pay
  • Support
    • Zonda Exchange
    • Zonda Pay
English
Polski
Eesti
Deutsch
Français
Español
Italiano
Zonda
  • Trade
    • Individual Clients
    • Business Clients
    • Affiliate Program
    • Zonda powered by ZEN
  • Track

      Promoted:

      -
      -
      -
      -
      -
      -
      Currency
  • Learn
    • Academy
    • News
    • Blog
  • Support
    • Zonda Exchange
    • Zonda Pay
    • Terms and condition of service
  • Career
  • Login
  • Register
  1. Home
  2. Académie
  3. 2.15 How to trade crypto responsibly
  • 2.01 Why to invest in cryptocurrencies
  • 2.02 How to start cryptocurrency trading
  • 2.03 Common crypto trading terms
  • 2.04 Understanding market capitalization
  • 2.05 Bid-Ask spread and slippage
  • 2.06 Market participants explained
  • 2.07 Measuring market depth and liquidity
  • 2.08 Three major types of trade orders you need to know
  • 2.09 Fundamental and technical analysis for crypto trading
  • 2.10 Bull markets vs Bear markets
  • 2.11 What is arbitrage trading?
  • 2.12 How to earn cryptocurrencies without trading?
  • 2.13 What is paper trading?
  • 2.14 What are the common cryptocurrency scams?
  • 2.15 How to trade crypto responsibly
Previous lesson

2.15 How to trade crypto responsibly

This lesson helps you understand the practices to trade crypto responsibly.

article
Zonda Team
14 janvier 2022
18 août 2022



The prices of cryptocurrencies fluctuate quite often which can either lead to huge profits or losses in the short term. When you enter the space, it is common to feel FOMO (Fear of Missing Out) and buy more assets expecting profits. However, buying and selling digital currencies out of emotions will not help in the long term to build a good portfolio. 

It is very common for new investors to trade cryptocurrencies impulsively. But, making decisions with a clear head, due diligence and following a trading strategy helps you with responsible crypto trading. 

This lesson helps you understand the practices to trade crypto responsibly. 

Contents

  • What is responsible trading?
  • Practices to trade crypto responsibly 

What is responsible trading?

Responsible trading is more than just buying or selling digital currencies. You need to be in control of your actions rather than trading assets out of FOMO. 

Trading responsibly is about being accountable for your trading actions. It involves preparing a proper trading strategy and making decisions consciously instead of acting based on emotions. 

Responsible cryptocurrency traders avoid sentiments and activities that will lead to an unstable portfolio. You need to stick to your trading plan and constantly watch where your decisions are negatively influenced by external factors. You can develop the skill of responsible crypto trading with time and experience. 

Practices to trade crypto responsibly 

Create a trading plan 

One of the best ways to not let your emotions decide your portfolio is to create a trading plan or trading strategy. 

Your trading strategy can include market analysis, which crypto to buy, and how much to invest beforehand. By doing so, sudden changes in market prices, rumors, and FUD will not disturb your decisions. 

Outlining your trading objectives, risks you can take, the kind of trades you want to make in the future will help you create a trading plan. Your trading strategy can include the following factors: 

  • Entry and exit prices for specific trades
  • Maximum investment amount in a certain period
  • Diversity of your portfolio
  • The products or assets you trade
  • Maximum losses you can afford

Use stop-limit orders

It can be difficult to be on screen 24/7 and watch how the crypto market is behaving to make subsequent decisions. Additionally, buying and leaving large amounts of highly volatile assets is not a good idea. Hence the stop-limit order is the best option to control the risks involved with virtual currencies. 

Stop-limit orders consist of two types of orders: stop price and limit price. When the asset reaches a specific price, the stop price activates the order. The limit price can be the maximum price you want to sell an asset or the minimum price you want to buy an asset. 

You can read one of the academy's previous lessons on order types to know more about stop-limit order, an advanced method to minimize the losses involved with cryptocurrencies.

Do your own research (DYOR)

While it is important to listen to industry experts and their advice, it is necessary to conduct your own research. Even when you are new to the industry, do your own research to understand the market situation and make your decisions accordingly. 

Doing your own research will help you make better trading decisions and be responsible for your actions. Only you know your risk profile and your financial status. So only you can decide what to invest and where to invest. 

Before you start investing, research the market thoroughly and understand fundamental and technical analysis instead of depending on other people.

Diversify your portfolio 

While creating a trading plan, you need to include different types of products or assets to minimize risks. 

Diversifying your crypto holdings will help you distribute the risks. As a responsible trader, you can also consider exposing your portfolio to promising cryptocurrencies apart from Bitcoin. 

Avoid FOMO

It is quite common to feel FOMO when trading cryptocurrencies. Being constantly exposed to cryptocurrency news and updates may prompt you to instantly start trading digital currencies, any time of the day. However, you need to be careful and watch how it affects your emotions and actions while trading. The fear of missing out on large profits might make you abandon your trading strategy and instead rely on impulsive judgments. 

Avoiding FOMO and sticking to your trading plans will help you trade crypto responsibly. It is important to be disciplined enough to ignore FOMO. Take some time to research the project thoroughly and avoid taking brisk actions. You can also strategically dedicate only a specific amount of hours to crypto trading each day. This helps you avoid 24/7 trading cycles and instead invest with a plan. 

Performing due diligence, creating a trading plan, and being committed to it no matter the external factors will make you a responsible crypto trader and give you better long-term results.

FR

This material does not constitute investment advice, nor is it an offer or solicitation to purchase any cryptocurrency assets.

This material is for general informational and educational purposes only and, to that extent, makes no warranty as to, nor should it be construed as such, regarding the reliability, accuracy, completeness or correctness of the materials or opinions contained herein.

Certain statements in this educational material may relate to future expectations that are based on our current views and assumptions and involve uncertainties that could cause actual results, performance or events to differ from those statements.

BB Trade Estonia OU and its representatives and those working directly or indirectly with BB Trade Estonia OU do not accept any liability arising from this article.

Please note that investing in cryptocurrency assets carries risks in addition to the opportunities described above.

Previous lesson
16 / 1 / 22
Trading
Investing

3.03 The Dow theory: principles and statements

This lesson helps you understand the principles and statements of Dow’s theory.

Continuer à lire
3.03 The Dow theory: principles and statements
16 / 1 / 22
Trading
Investing

2.05 Bid-Ask spread and slippage

This lesson explains bid-ask spread and slippage.

Continuer à lire
2.05 Bid-Ask spread and slippage
16 / 1 / 22
Essentials
Economics
Investing

2.04 Understanding market capitalization

This lesson centers on understanding cryptocurrency market capitalization.

Continuer à lire
2.04 Understanding market capitalization
14 / 1 / 22
Trading
Investing

3.01 What is fundamental analysis in crypto?

This lesson walks you through the fundamental analysis of cryptocurrencies. 

Continuer à lire
3.01 What is fundamental analysis in crypto?
14 / 1 / 22
Trading
Investing

2.06 Market participants explained

There are two market participants: market makers and market takers.

Continuer à lire
2.06 Market participants explained
14 / 1 / 22
Essentials
Trading
Investing

2.07 Measuring market depth and liquidity

This lesson explains market depth, market liquidity, and volatility.

Continuer à lire
2.07 Measuring market depth and liquidity
14 / 1 / 22
Essentials
Trading
Investing

2.08 Three major types of trade orders you need to know

This lesson explains three major types of trade orders and how they work. 

Continuer à lire
2.08 Three major types of trade orders you need to know
14 / 1 / 22
Safety
Investing

2.14 What are the common cryptocurrency scams?

This lesson discusses common cryptocurrency scams in detail.

Continuer à lire
2.14 What are the common cryptocurrency scams?
14 / 1 / 22
Essentials
Trading
Investing

2.09 Fundamental and technical analysis for crypto trading

This lesson focuses on explaining how fundamental and technical analysis will help you assess cryptocurrencies.

Continuer à lire
2.09 Fundamental and technical analysis for crypto trading
13 / 1 / 22
Bitcoin
Safety
Blockchain

1.13 Can Bitcoin network be hacked?

In this lesson, we discuss why it is nearly impossible to hack the Bitcoin blockchain.

Continuer à lire
1.13 Can Bitcoin network be hacked?
13 / 1 / 22
Essentials
Safety

1.07 Best practices to keep your crypto safe

This lesson provides you with valuable tips and tricks to keep your cryptocurrencies safe.

Continuer à lire
1.07 Best practices to keep your crypto safe
13 / 1 / 22
Essentials
Safety
Wallet

1.06 Understanding crypto wallet terms

In this lesson, we take a deep dive into crypto wallet terms like public and private keys, wallet address, and ...

Continuer à lire
1.06 Understanding crypto wallet terms
13 / 1 / 22
Essentials
Safety
Wallet

1.05 Storing crypto: where and how?

In this lesson, we explain how and where to store cryptocurrencies.

Continuer à lire
1.05 Storing crypto: where and how?

Pièces disponibles


Trade

  • Individual Clients
  • Business Clients
  • Affiliate Program
  • Zonda powered by ZEN

Track

  • All Currencies

Learn

  • Academy
  • Blog
  • News
Zonda Pay

Support

  • Zonda Exchange
  • Zonda Pay

Legal

  • Zonda Exchange
  • Zonda Pay

Safety

  • Zonda Exchange
  • Zonda Pay
Who we are Career Contact Charges table Payment and withdrawals Trading API Brand assets Charts

Changer de langue

English
Polski
Eesti
Deutsch
Français
Español
Italiano
Terms and conditions of service
Privacy Policy
Cookie Policy
Facebook Twitter Instagram LinkedIn


BB Trade Estonia OÜ Office nr 10 (second floor) Tähesaju tee 9, 13917 Tallinn, Estonia Registration of Entrepreneurs number: 14814864

VAT Number: EE102200164

We use cookies to personalise your experience on Zonda
Manage Cookies
Accept Cookies

As the name suggests, certain cookies on our websites are necessary. They are necessary for the storage of your settings during the use of Zonda (e.g., privacy or language settings) to protect the platform against attacks. You can reject, block or delete them, but this will not impact significantly your experience during the use of this website or even make it impossible to use some of our services. See details

J'accepte
Marketing cookies

We use such cookies and similar technologies for collecting information while users browse our website to learn more about how it is used and improve our services as necessary. Cookies are also used for measuring the general efficiency of our website. The data generated by them are used on an aggregate and anonymous basis. Blocking these cookies and tools will not affect our services, but will make it difficult for us to improve the experience of their users. See details

J'accepte