For some time, I have been closely observing the performance of cryptocurrencies to understand the direction of the market. The routine that my elementary school teacher taught me is that you wake up, pray, brush your teeth and eat breakfast, you start to wake up, pray and then enter the network (starting with coinmarketcap) just to know which cryptocurrencies are contained in it assets. This red.
For altcoins and related assets, the beginning of 2018 is not a good choice. Bankers often think that the crypto bubble is about to burst, which hurts their performance. Despite this, ardent cryptocurrency followers are still “persisting in,” and to be honest, they are making a fortune.
Recently, Bitcoin retreated to nearly $5,000. Bitcoin Cash was close to $500, while Ethereum calmed down at a price of $300. Almost every coin has been welcomed by novices, who are still in the excitement stage. At the time of writing, Bitcoin is back on track, and its price is $8,900. Since the beginning of the uptrend, many other cryptocurrencies have doubled and their market value has fallen from a recent peak of $250 billion to $400 billion.
If you are slowly adapting to cryptocurrency and want to become a successful trader, the following tips will help you.
Practical tips on how to trade cryptocurrencies
• Moderate start
You have heard that cryptocurrency prices are skyrocketing. You may also have received the message that this upward trend may not last long. Some opponents, mostly respected bankers and economists, often refer to it as a get rich quick plan without a stable foundation.
Such news will make you eager to invest and become uncontrollable. A small amount of analysis of market trends and valuable currencies can guarantee you a good return. No matter what you do, don’t put all your hard-earned money into these assets.
• Understand how communication works
Recently, I saw a friend of mine posted a Facebook feed of one of his friends on Facebook. He continued to trade on the exchange, and he didn’t know how it worked. This is a dangerous move. Before registering or at least before starting a transaction, always check the website you intend to use. If they provide a virtual account for you to play with, please take this opportunity to understand what the dashboard looks like.
• Don’t insist on trading everything
There are more than 1,400 cryptocurrencies that can be traded, but it is impossible to handle all of them. Spreading your investment portfolio into a large number of cryptocurrencies that you cannot effectively manage will minimize your profits. Just select some of them, read more about them, and how to get their trading signals.
Cryptocurrency is volatile. This is both their bane and a gift. As a trader, you must understand that crazy price fluctuations are inevitable. The uncertainty of when to act makes traders ineffective. Use hard data and other research methods to determine when to trade.
Successful traders belong to various online forums where cryptocurrency discussions about market trends and signals are discussed. Of course, your knowledge may be sufficient, but you need to rely on other traders to obtain more relevant data.
• Diversify meaningfully
Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies that have real-world uses. You can use some coins with coins to make money quickly, but the best cryptocurrency is one that can solve existing problems. Coins with practical uses are less volatile.
Don’t diversify too early or too late. And before you start buying any crypto asset, make sure you know its market value, price changes, and daily trading volume. Maintaining a healthy investment portfolio is the way to get rich returns from these digital assets.