For some time now, I have been closely monitoring the performance of cryptocurrencies to feel where the market is going. The routine that my elementary school teacher taught me – where you wake up, pray, brush your teeth, and eat breakfast – changed to wake up a little, pray, and then find out what cryptocurrencies are on the Internet (starting with coinmarketcap). Red.
The beginning of 2018 was not pleasant for altcoins and related assets. Their performance was hampered by bankers’ frequent claims that the cryptocurrency bubble was about to explode. However, enthusiastic cryptocurrency followers are still “HODLing” and, in fact, reap big.
Recently, Bitcoin has fallen to almost $ 5,000; Bitcoin Cash approached $ 500, while Ethereum found comfort at $ 300. Almost every coin was minted, except for newcomers who are still in the excitement phase. At the time of writing, Bitcoin is back on track and selling for $ 8,900. Many other cryptocurrencies have doubled since the start of the upward trend, and their market value has risen from the last $ 250 billion to $ 400 billion.
If you are slowly getting used to cryptocurrencies and want to be a successful trader, the following tips will help you.
Practical tips on cryptocurrency trading
• Start with humility
You have already heard that cryptocurrency prices have risen sharply. You have probably heard that this upward trend will not last long. Some opponents, especially prominent bankers and economists, continue to refer to them as schemes of rapid enrichment with no stable basis.
This kind of news can make you rush to invest and not be able to moderate. A small analysis of market trends and valuable currencies to invest in can guarantee you a good return. No matter what you do, don’t invest all your hard-earned money in these assets.
• Understand how exchanges work
I recently saw a friend send a Facebook feed about one of his friends going shopping on an exchange, he had no idea how it worked. This is a dangerous move. Always review the site you want to use before registering, or at least before you start trading. If they offer a dummy score to play with, then use this opportunity to learn what the dashboard looks like.
• Don’t insist on shopping everything
There are more than 1,400 cryptocurrencies for trading, but it is impossible to deal with all of them. Distributing as many cryptocurrencies as you can effectively manage your portfolio will minimize your profits. Just pick a few of them, read more about them and how to get their trading signals.
• Stay awake
Cryptocurrencies are volatile. This is both their misfortune and their blessing. As a trader, you need to understand that wild price changes are inevitable. Uncertainty about when to move makes a person an inefficient trader. Use rigorous data and other research methods to make sure when the trade will take place.
Successful traders belong to various online forums where cryptocurrency discussions related to market trends and signals are discussed. Of course, you may have enough knowledge, but you should rely on other traders for more relevant information.
• Diversify meaningfully
Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with the currencies used in the real world. There are a few bad coins you can handle to make quick money, but the best cryptocurrencies to deal with are the ones that solve existing problems. Coins used in the real world are less volatile.
Don’t diversify too early or too late. And before you move to buy any crypto-asset, make sure you know its market value, price changes and daily trading volume. Maintaining a healthy portfolio is a great way to make a lot of money from these digital assets.