For some time now, I have been closely monitoring the performance of cryptocurrencies to understand where the market is heading. My elementary school teacher routine taught me – where to wake up, pray, brush your teeth and get your breakfast has shifted a bit to waking up, praying and hitting the internet (starting with the coin) just to know what the crypto assets are Red .
The beginning of 2018 was not fun for altcoins and renewables. Their performance was crippled by frequent thoughts from bankers that the crypto bubble was about to burst. However, ardent followers of cryptocurrencies are still “HODLing” and to tell the truth, they are reaping a lot.
Recently, Bitcoin returned to nearly $ 5000; Bitcoin Cash reached close to $ 500 while Ethereum found peace at $ 300. Almost every coin was hit by newcomers who were still in the excitement phase. As of this writing, Bitcoin is back on track and selling it at $ 8900. Many other cryptocurrencies have doubled since the uptrend began and the market limit is resting at $ 400 billion from the last $ 250 billion ridge.
If you are slowly warming up with 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 already heard that cryptocurrency prices are rising. You also probably got the news that this growing trend may not last long. Some naysayers, mostly respected bankers and economists usually go ahead to call them fast-paced wealth schemes without a solid foundation.
Such news can make you invest in a hurry and not implement moderation. A little analysis of market trends and currencies worthy of cause to invest can guarantee you good returns. Whatever you do, do not invest all your hard earned money in these assets.
• Understand how exchanges work
Recently, I saw a friend of mine posting a source on Facebook to one of his friends who continued to trade on an exchange that he had zero idea how it works. This is a dangerous move. Always review the site you plan to use before you sign up, or at least before you start trading. If they offer a dummy account to play with, then take that opportunity to learn what the panel looks like.
• Do not insist on trading everything
There are over 1400 cryptocurrencies to trade, but it is impossible to deal with all of them. Spreading your portfolio in a larger number of cryptos than you can effectively manage will minimize your profits. Just pick some of them, read more about them and how to get their trading signals.
• Stay sober
Cryptocurrency are volatile. This is both their punishment and their benefit. As a trader, you need to understand that wild price changes are inevitable. Uncertainty about when to take action makes it an ineffective trader. Use solid data and other research methods to be sure when to execute a 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 should rely on other traders for more important data.
• Diversify significantly
Almost everyone will tell you to expand your wallet, but no one will remind you to deal with coins with uses in the real world. There are some crazy coins you can deal with for quick money, but the best cryptos to deal with are the ones that solve existing problems. Real-world use coins tend to be less volatile.
Do not diversify too early or too late. And before you make a move to buy any crypto-asset, make sure you know its market cap, price changes and daily trading volumes. Maintaining a healthy portfolio is the way to reap many of these digital assets.