For quite a while now, I have been closely jotting the performance of cryptocurrencies to get a feel of where the market is headed. The routine my elementary school teacher taught me-where you wake up, pray, brush your teeth and take your breakfast has moved a little to waking up, praying and then hitting the web (starting with coinmarketcap) just to know which crypto assets are in the red.
The beginning of 2018 has not been a lovely one for altcoins and relatable assets. Their performance was crippled by the frequent opinions from crypto pump signals bankers that the crypto bubble was about to burst. Nevertheless, ardent cryptocurrency followers are still “HODLing” on and truth be told, they are seeing big.
Recently, Bitcoin retraced to almost $5000; Bitcoin Cash came close to $500 while Ethereum found peace at $300. Virtually every coin got hit-apart from newcomers that were still in excitement stage. As of this writing, Bitcoin is back on track and its selling at $8900. Many other cryptos have doubled since the upward trend started and the market cap is resting at $400 thousand from the recent crest of $250 thousand.
If you are slowly warming up to cryptocurrencies and wish to become a successful speculator, the tips below will help you out.
Practical tips on how to trade cryptocurrencies
- Start slightly
You’ve already heard that cryptocurrency prices are skyrocketing. You’ve also probably received the news that this upward trend may not last long. Some naysayers, mostly prestigious bankers and economists usually just do it to term them as get-rich-quick schemes with no stable foundation.
Such news can make you invest in a dash and fail to apply moderation. A little analysis of the market trends and cause-worthy stock markets to buy can guarantee you good returns. For every do, do not invest all your hard-earned money into these assets.
- Appreciate how exchanges work
Recently, I saw a friend of acquire post a Facebook feed about one of his friends who went on to trade on an exchange he previously zero ideas on what it runs. This is a dangerous move. Always review the site you intend to use before signing up, or at least before you start trading. If they provide a dummy account to play around with, then take that possiblity to learn how the dashboard looks.
- Don’t require trading everything
There are over 1400 cryptocurrencies to trade, but it’s impossible to deal with all of them. Spreading your past record to and endless choice of cryptos than you can effectively manage will minimize your profits. Just select a few of them, read more about them, and how to get their trade signals.
- Stay sober
Cryptocurrencies are volatile. This is both their bane and godsend. As a speculator, you have to understand that wild price ups and downs are necessary. Uncertainty over when to generate a move makes one an ineffective speculator. Leverage hard data and other research methods to be sure when to execute a trade.
Successful traders belong to various online boards where cryptocurrency discussions regarding market trends and signals are discussed. Sure, your knowledge may be sufficient, but you need to rely on other traders for more relevant data.
- Diversify meaningfully
Virtually everyone will tell you to expand your past record, but no one will remind you to deal with stock markets with real-world uses. There are a few substandard quality coins that you can deal with for quick bucks, but the best cryptos to deal with are those 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 take action to buy any crypto-asset, ensure you know its market cap, price changes, and daily trading databases. Keeping a healthy past record is the way to seeing big from these digital assets.
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