For some time now, I have been closely monitoring the performance of cryptocurrencies to gain a sense of where the market is going. The routine my primary school teacher taught me – where you wake up, pray, brush your teeth and have breakfast, switched a bit to waking up, praying, and then to the network (starting with coinmarketcap) just to know what crypto assets are in finds red.
The start of 2018 was not nice for altcoin and relative assets. Their performance was crippled by the frequent opinions of bankers that the crypto bubble would soon burst. Nonetheless, ardent followers of cryptocurrencies are still “at gamble” and truth be told, reaping big.
Recently, Bitcoin returned to nearly $ 5,000; Bitcoin Cash approached $ 500, while Ethereum found peace at $ 300. Almost every coin was hit except the newcomers who were still in the excitement phase. As of this writing, Bitcoin is back on track and is selling at $ 8,900. Many other crypto-games have doubled since the growth trend began, and the market capitalization rests at $ 400 billion compared to the recent peak of $ 250 billion.
If you are slowly warming up to cryptocurrencies and want to become a successful trader, the tips below will help you.
Practical tips on how to trade cryptocurrencies
• Start modestly
You have already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the news that this uptrend may not last long. Some troublemakers, mostly esteemed bankers and economists, usually call them rapid enrichment schemes without a stable basis.
Such news can make you rush and not apply moderation. A small analysis of market trends and currencies worth investing in that you can invest in can guarantee you a good return. Whatever you do, don’t invest all your hard-earned money in this property.
• Understand how exchanges work
I recently saw my friend posting on Facebook a feed about one of his friends who continued to trade the stock market, and he had no idea how it was going. This is a dangerous move. Always review the site you intend to use before you sign up or at least before you start trading. If they provide a fake gaming account, take that opportunity and find out what the dashboard looks like.
• Don’t insist on trading everything
There are over 1400 cryptocurrencies to trade, but it is impossible to deal with all of them. Expanding your portfolio to a huge number of cryptocurrencies that you can manage efficiently will reduce your profits. Just pick a few, read more about them and how to get their trading signals.
• Stay sober
Cryptocurrencies are unstable. This is both their harm and grace. As a retailer, you need to understand that inevitable price changes are inevitable. Uncertainty about when it moves makes it an inefficient trader. Use reliable data and other research methods to be sure when to trade.
Successful traders belong to various online forums where discussions of cryptocurrencies related to market trends and signals are discussed. Sure, your knowledge may be enough, but for more relevant data you need to rely on other traders.
• Diversify significantly
Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies used in the real world. There are a few shitty coins with which you can solve quick money, but the best crypto solutions to solve existing problems. Coins with actual use tend to be less unstable.
Don’t diversify too soon or too late. And before you make the move to buy any cryptocurrency, make sure you know its market boundary, price changes, and daily trading volume. Maintaining a healthy portfolio is a way to benefit greatly from this digital asset.