For a few months, I have been closely watching the progress of cryptocurrency to gain a sense of what direction the market will take. The daily routine that my elementary school teacher taught me- where you get awake, pray brush your teeth and have breakfast, has changed to waking up, praying, and then going online (starting on coinmarketcap) in order to find out which crypto assets are in the red.
The first quarter of 2018 wasn’t an ideal one for altcoins and relatable assets. Their performance was severely impacted by the frequent rumors of bankers that the crypto bubble was about to burst. But, avid cryptocurrency fans are “HODLing” on and , if truth to tell, they’re profiting hugely.
Recently, Bitcoin retraced to almost $5000. Bitcoin Cash came close to $500, while Ethereum achieved peace at around $300. Nearly every Best crypto insurance company coin suffered from newcomers at the stage of excitement. In the current moment, Bitcoin is back on track and its selling at $8900. Other cryptos have increased by more than a third since the upward trend started as well. The market capitalization has remained at $400 billion from the recently reached $250 billion.
If you’re just beginning to warm to the idea of cryptocurrencies and are hoping to become a profitable trader, the strategies below will help out.
Practical tips on how to trade in cryptocurrencies
* Start modestly
You’ve probably heard that cryptocurrency prices are skyrocketing. You’ve probably also heard the report that this uptrend may not last long. Some naysayers, mostly esteemed economists and bankers typically tend to refer to them as schemes to make quick money with little or no foundation.
This kind of news can cause you to invest in a hurry and forget to exercise moderation. A little analysis of the markets and the most cause-worthy currencies to invest in can ensure you a good return. Whatever you do, make sure to not put all your hard-earned money in these types of investments.
* Learn how exchanges work.
Recently, I saw my friend publish a Facebook feed of one of his friends who went on to trade with an exchange that he had zero ideas on how it works. This is a dangerous move. Make sure to review the site you’re planning on using prior to you sign up or at the very least prior to trading. If they have a dummy account for you to test and then use that chance to see how the dashboard appears.
* Do not insist on trading everything
There are more than 1400 different cryptocurrencies to trade, but it’s impossible to manage all of them. If you spread your portfolio over more cryptos that you aren’t able to manage will reduce your earnings. Just select a few of them, learn more about them, and how to obtain their signals for trading.
* Stay sober
Cryptocurrencies are unpredictable. They are both a curse and their boon. As an investor, you have to be aware that wild price swings are inevitable. Uncertainty regarding when to make a move makes one an ineffective trader. Leverage hard data and other methods of research to be sure when to execute a trade.
Successful traders are part of various online forums where cryptocurrency discussions regarding market trends and signals are discussed. While your expertise may be adequate, but you’ll need other traders to get more accurate data.
* Diversify effectively
Everybody will tell that you should expand you portfolio. However, no one will ever remind you to deal using currencies that are used in the real world. There are a few bad coin that you can play with to make quick cash, but the best cryptos to use are those that solve existing problems. Coins that have real-world applications tend to be less volatile.
Do not diversify too early or too late. Prior to making an investment decision to purchase any cryptocurrency, make sure you are aware of its market cap, price changes, and daily trading volumes. Making sure your portfolio is healthy will help you reap the most benefits from the digital currency.