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Guide for new traders: Should you trade alone or trade in a group?

Guide for new traders

Cryptocurrency trading refers to the process of exchanging cryptocurrencies. It is a plausible way to get involved in the crypto market without going through the process of mining which is more tasking, stressful and costly.

As a new trader, you may choose to trade alone, i.e., doing all the research and analysis by yourself, or you may decide to opt for trading in a group where expert research and analysis guide your trading decisions. This article will examine how both trading forms work and highlight the benefits and shortcomings of both forms.

Crypto Trading Strategy: Trade alone

It is worthy to note that crypto trading is different from investing in cryptocurrencies.  When you invest, you are buying a coin and keeping it till the value surges so you can sell and make gains. However, with trading, you are swapping currencies, for instance, exchanging ether for bitcoin in a bid to switch teams to continue having the highest value you can get based on market speculations.

As a new trader who decides to trade alone, you become solely responsible for carrying out your research, analysis and making trading choices based on your findings.  There are different resources, news, and articles available for you to peruse when trying to make a decision but while some of these may be easily understandable, there are times when you need expert eyes to help you in understanding the implication of specific information.

Also, most of these resources have conflicting content, and some are even not an accurate representation of facts and can, therefore, lead to confusion. All these may be very discouraging for a new trader who is just trying to learn the ropes.

 

Pros

  1. Flexibility in decision making

Since you are making your decisions all by yourself, you can choose to change your mind at any point based on your instincts and what you feel to be right.

  1. Opportunity to increase your knowledge about crypto trading

Knowing that you are entirely responsible for your trading choices, you will most likely become interested in learning more about the dynamics of the crypto trading market, and this will likely increase your knowledge over time.

Cons

  1. As a new trader with no background knowledge, you are susceptible to making trading mistakes that you can avoid that if you join a legitimate trading group
  2. The flexibility of your decisions may sometimes be a bad thing because it makes it easy for you to change your mind too quickly without putting some essential metrics into consideration
  3. The process of learning more about crypto trading may take longer than it would if you join a trading group where there are experts to guide your learning process.

Crypto Trading Strategy: Trade as a group

There is no gainsaying that delving into crypto sphere can be intimidating to a first-time trader. There are so many things you are learning for the first time, for instance, you need to have a considerable understanding of the technology behind cryptocurrencies, how to handle the dynamics of crypto trading, etc. There is no way you can avoid learning the basics, because if you want to thrive in the crypto scene, you not only need to understand how to trade the coins, you also need to know the factors that should influence you to trade at any given point.

All these might be hard to take in at once, and it may be complicated to do it all on your own. That is precisely why trading groups exist. There are legitimate trading groups, and there are “pump and dump” groups. A trading group is ordinarily devoted to helping new trader stay abreast of all relevant and authentic crypto news and providing an avenue to discuss with others in a realistic and honest environment which is not manipulated. It is also a platform to get buying signals, recommendations, and analyses from professional analysts and market players.

In addition, on trading groups, a new trader also gets to learn about ICOs that have high potentials, gain access to well-detailed fundamental and technical analyses, signal alerts, stop-losses, multiple targets and target analyses all curated by experts.

More importantly, a new trader gets to enjoy the assistance of an experienced team of experts who have been in the crypto world for years and have a full understanding of the dynamics of the market.

Pros

  1. Access to legitimate crypto signals and not manipulated ones

In your quest to trade by yourself, you may end up falling for “pump and dump” groups which are nothing but scams. This can be avoided by joining a legitimate trading group from the onset. On legitimate trading groups, you get authentic cryptocurrency signals and not manipulated ones. A signal is a message that lets you know when the price of a particular cryptocurrency is likely to surge and you can then make decisions based on the signal.

  1. An avenue to get expert guidance and support

Trading in a group is also an excellent opportunity to learn the ropes from expert traders. Trading groups usually consists of analysts that have a vast knowledge and experience in trading and investing in various markets and under multiple conditions.  Rather than going through the stress caused by the high volatility of crypto assets all by yourself, these trading groups experts take the burden off you by providing you with adequate knowledge and tools to make well-informed decisions.

  1. All you need in one place

As a new trader trading in a group, you do not have to go through the stress of researching, analyzing and guessing. All you need to make a right decision are available on a trading group.

Cons

  1. There are several pump and scheme crypto groups

New traders can fall victim to these scam pump and dump groups. These groups thrive on manipulation and not on how standard trading group works.

  1. Enjoying the professional services does not come for free

This is not a con per se, because at the end of the day you end up saving yourself money and time.  Within a couple of days or weeks, most people who join a trading group always record positive gains.

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