For some time now, I have been closely monitoring the work of cryptocurrencies to feel where the market is heading. The routine taught by my elementary school teacher – where you wake up, pray, brush your teeth and have breakfast, moves a little to wake up, pray, and then get online (starting with coinmarketcap), just to know which crypto- assets are red.
The start of 2018 was not great for altcoins and relative assets. Their work has been crippled by the frequent opinions of bankers that the crypto-bubble is about to burst. However, avid cryptocurrency followers are still “trading” and, truth be told, they are reaping.
Recently, bitcoin returned to nearly $ 5,000; Bitcoin Cash has approached $ 500, while Ethereum has found peace at $ 300. Virtually every coin came under attack from beginners who were still in the excitement stage. As of the time of writing, bitcoin is back in the stage and is selling for $ 8,900. Many other cryptophones have doubled since the uptrend began, and the market capitalization is $ 400 billion from the recent crest 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 heard that cryptocurrency prices are rising rapidly. You have also probably received the news that this upward trend may not last long. Some parasites, mostly respected bankers and economists, usually call them schemes of rapid enrichment without a stable basis.
Such news can make you rush to invest and not apply moderation. A small analysis of market trends and currencies in which you can invest can guarantee you a good return. Whatever you do, don’t invest all that hard-earned money in these assets.
• Understand how exchanges work
I recently saw a friend of mine posted on Facebook a feed about one of his friends who continued to trade the stock market, he had zero ideas about how it works. This is a dangerous step. Always inspect the site you are going to use, before registering or at least before you start trading. If they provide a bogus account that you can play with, take the opportunity to find out what the dashboard looks like.
• Don’t insist on trading at all
There are over 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Spreading your portfolio to a huge number of crypts than you can effectively manage minimizes your profits. Just pick a few of them, read more about them and how to get their trading signals.
• Stay sober
Cryptocurrencies are volatile. This is their ugliness and well-being. As a trader, you need to understand that wild price fluctuations are unavoidable. Uncertainty when to take a step makes an inefficient trader. Use solid data and other research methods to be sure when making a deal.
Successful traders belong to various online forums where discussions about cryptocurrencies regarding market trends and signals are discussed. Sure, your knowledge may be enough, but you need to rely on other traders to get more relevant data.
• Significantly diversify
Virtually 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 bad coins you can handle to get quick money, but the best crypts to deal with are the ones that solve existing problems. Coins used in the real world tend to be less volatile.
Don’t diversify too sooner or later. And before you take the step of buying any crypto-asset, make sure you know its market capitalization, price changes and daily trading volumes. Maintaining a healthy portfolio is a way to get the most out of these digital assets.