For a while, I’ve been watching closely the performance of cryptocurrencies to see where the market is headed. The routine my primary school teacher teaches – where you wake up, pray, brush your teeth and have breakfast, shift a little to wake up, pray and then hit the net (starting with coinmarketcap) just to I know in which cryptocurrencies the assets are red.
The beginning of 2018 was not great for altcoins and related assets. Their execution was crippled by bankers’ frequent opinions that the crypto bubble is about to burst. Nevertheless, cryptocurrency ardent followers are still “HODLing” and truth be told, they are very big.
Recently, bitcoin has pulled up to almost $ 5,000; Bitcoin Cash came close to $ 500, while Ethereum found peace at $ 300. Virtually every coin was struck except for newcomers who were still in a state of excitement. To this text, Bitcoin is back on track and its sales are $ 8,900. Many other cryptocurrencies have doubled since the uptrend, with the market cap resting at $ 400 billion from the recent $ 250 billion crest.
If you are slowly warming up to cryptocurrencies and want to become a successful trader, the tips below will help you get out.
Practical tips on how to trade cryptocurrencies
• Begin modestly
You have heard that cryptocurrency prices are rising fast. You may also have received the news that this upward trend may not last long. Some naysayers, most respected bankers and economists, usually continue to refer to them as quick enrichment schemes without a stable basis.
Such news can make you invest quickly and fail to apply moderation. A small analysis of market trends and currency-valid investments can guarantee you a good return. Whatever you do, do not invest all your hard earned money in these assets.
• Understand how exchanges work
I recently saw a friend of mine post a Facebook feed for one of his friends who continued to trade on the stock exchange, he had zero idea how it was going. This is a dangerous move. Always review the site you intend to use before you sign up, or at least before you start trading. If they provide a dummy account to play with, use this opportunity to learn what the dashboard looks like.
• Don’t insist on trading everything
There are over 1400 cryptocurrencies to trade, but it is impossible to handle all of them. Expanding your portfolio to a huge number of cryptocurrencies than you can effectively manage will minimize your profits. Just select a few, read more about them and how to get their trading alerts.
• Be sober
Cryptocurrencies are volatile. It is both their bath and grace. As a trader, you should understand that wild price fluctuations are inevitable. The uncertainty about when to make a move makes one an inefficient trader. Use hard data and other research methods to know when to make a deal.
Successful traders belong to various online forums where cryptocurrencies are discussed about market trends and alerts. Of course, your knowledge may be sufficient, but you should rely on other marketers for more relevant data.
• Diversify meaningfully
Practically everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies with real applications. There are some stupid coins you can handle for quick bucks, but the best cryptos to deal with are the ones that solve existing problems. Coins with real applications are usually less volatile.
Do not diversify too soon or too late. And before you make the move to buy a cryptocurrency, make sure you know its market cap, price changes, and daily trading volumes. Maintaining a healthy portfolio is the way to make the most of these digital assets.