For quite a while now, I have already been closely observing the performance of cryptocurrencies to get a feel of where the marketplace is headed. The routine my elementary school teacher taught me where you wake up, pray, brush your teeth and take your breakfast has shifted a little to waking up, praying, and then hitting the internet (starting with coinmarketcap) just to understand which crypto assets come in the red.
The beginning of 2018 wasn’t a beautiful one for altcoins and relatable assets. Their performance was crippled by the frequent opinions from bankers that the crypto bubble was going to burst. Nevertheless, ardent cryptocurrency followers are still “HODLing” on and truth be told, they’re reaping big.
Recently, Bitcoin retraced to almost $5000; Bitcoin Cash came close to $500 while Ethereum found peace at $300. Just about any coin got hit-apart from newcomers that were still in excitement stage Crypto Staking. Around this writing, Bitcoin is back on course and its selling at $8900. Many other cryptos have doubled because the upward trend started and the marketplace cap is resting at $400 billion from the recent crest of $250 billion.
If you’re slowly starting to warm up to cryptocurrencies and wish becoming a successful trader, the tips below will help you out.
Practical tips on how to trade cryptocurrencies
• Start modestly
You’ve already heard that cryptocurrency prices are skyrocketing. You’ve also probably received the headlines that this upward trend might not last long. Some naysayers, mostly esteemed bankers and economists usually proceed to term them as get-rich-quick schemes without stable foundation.
Such news can make you invest in a rush and fail to use moderation. A little analysis of the marketplace trends and cause-worthy currencies to invest in can guarantee you good returns. What you may do, do not invest your entire hard-earned money into these assets.
• Know how exchanges work
Recently, I saw a buddy of mine post a Facebook feed about one of is own friends who continued to trade on a trade he had zero ideas on how it runs. This can be a dangerous move. Always review the website you want to use before signing up, or at the least before you begin trading. If they provide a dummy account to play around with, then take that opportunity to learn how a dashboard looks.
• Don’t insist on trading everything
You will find over 1400 cryptocurrencies to trade, but it’s impossible to cope with most of them. Spreading your portfolio to a wide array of cryptos than you can effectively manage will minimize your profits. Just select a number of them, learn more about them, and getting their trade signals.
• Stay sober
Cryptocurrencies are volatile. This is both their bane and boon. As a trader, you have to recognize that wild price swings are unavoidable. Uncertainty over when to create a move makes one an ineffective trader. Leverage hard data and other research methods to be certain when to execute a trade.
Successful traders fit in with various online forums where cryptocurrency discussions regarding market trends and signals are discussed. Sure, your knowledge may be sufficient, but you will need to count on other traders for more relevant data.
• Diversify meaningfully
Virtually everyone can tell you to expand your portfolio, but no body will remind you to cope with currencies with real-world uses. There are always a few crappy coins as possible cope with for quick bucks, but the best cryptos to cope with are the ones that solve existing problems. Coins with real-world uses tend to be less volatile.
Don’t diversify too early or too late. And before you make a move to buy any crypto-asset, ensure you understand its market cap, price changes, and daily trading volumes. Keeping a healthy portfolio is the best way to reaping big from these digital assets.