For some time now, I have been closely monitoring the performance of cryptocurrencies to understand where the market is heading. The usual regimen taught to me by an elementary school teacher – when you wake up, pray, brush your teeth and have breakfast, a little switch to waking up, praying, and then online (starting with coinmarketcap) to know which crypto-assets are in the red.
The start of 2018 was not very pleasant for altcoins and related assets. Their performance has been crippled by frequent bankers ’speculations that the crypto-bubble is about to burst. However, avid cryptocurrency supporters are still “holding on,” and, truth be told, they are reaping the rewards.
Recently, bitcoin returned to nearly $ 5,000; Bitcoin Cash has approached $ 500, and Ethereum has found peace of mind at $ 300. Virtually every coin received a hit, except for beginners who were still in the excitement stage. At the time of writing, bitcoin is back on track and is priced at $ 8,900. Many other cryptocurrencies have doubled since the beginning of the uptrend, and the market capitalization is $ 400 billion from the recent $ 250 billion.
If you are slowly warming up to cryptocurrencies and want to become a successful trader, the tips below will help you with that.
Practical tips on how to trade cryptocurrencies
• Start modestly
You have heard that cryptocurrency prices are rising rapidly. You also probably got the news that this upward trend may not last long. Some skeptics, 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 follow moderation. A little analysis of market trends and decent currencies that you can invest in can guarantee you a good return. Whatever you do, don’t invest all your hard-earned money in these assets.
• Understand how exchanges work
I recently saw a friend of mine posted a Facebook feed about one of his friends who continued to trade on the stock exchange, he had no idea how it worked. This is a dangerous step. Always review the site you are going to use before registering or at least before you start trading. If they represent a fictitious account that you can play with, take this opportunity to find out what the dashboard looks like.
• Don’t insist on trading everyone
There are over 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Spreading your portfolio to a huge amount of crypto 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 unstable. This is both famous and good for them. As a trader, you need to understand that wild price fluctuations are inevitable. Uncertainty about when to take a step makes a person an ineffective trader. Use accurate data and other research methods to be sure when making a deal.
Successful traders belong to various online forums where cryptocurrency trends and signals are discussed. Sure, your knowledge may be enough, but you need to rely on other traders to get more relevant data.
• Diversify content
Virtually everyone will tell you to expand your portfolio, but no one will remind you to deal with real-world currencies. There are a few bad coins you can deal with for quick money, but it’s best to deal with cryptocurrencies that solve existing problems. Coins with actual use tend to be less volatile.
Don’t diversify sooner or later. And before you buy 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.