For some time now, I have now been closely observing the performance of cryptocurrencies to obtain a feel of where industry is headed. The routine my elementary school teacher taught me where you wake up, pray, brush your teeth and take your breakfast has shifted only a little to waking up, praying, and then hitting the net (starting with coinmarketcap) just to learn which crypto assets are in the red.
The start of 2018 wasn’t a wonderful 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 remain “HODLing” on and truth be told, they’re reaping big.
Recently, Bitcoin retraced to almost $5000; Bitcoin Cash came near $500 while Ethereum found peace at $300. Virtually every coin got hit-apart from newcomers which were still in excitement stage Crypto Staking. Around this writing, Bitcoin is back on the right track and its selling at $8900. Many other cryptos have doubled considering that the upward trend started and industry cap is resting at $400 billion from the recent crest of $250 billion.
If you are slowly warm up to cryptocurrencies and wish to become 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 news headlines 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 cause you to invest in a hurry and fail to apply moderation. A little analysis of industry trends and cause-worthy currencies to invest in can guarantee you good returns. Whatever you do, don’t invest all your hard-earned money into these assets.
• Know how exchanges work
Recently, I saw a pal of mine post a Facebook feed about one of is own friends who continued to trade on a change he had zero ideas on what it runs. This can be a dangerous move. Always review the website you intend to use before signing up, or at least before you start trading. If they give a dummy account to mess around with, then take that opportunity to understand how the dashboard looks.
• Don’t insist on trading everything
You will find over 1400 cryptocurrencies to trade, but it’s impossible to manage each of them. Spreading your portfolio to a wide array of cryptos than you are able to effectively manage will minimize your profits. Just select a few of them, learn more about them, and how to get their trade signals.
• Stay sober
Cryptocurrencies are volatile. This is both their bane and boon. As a trader, you have to realize 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 make sure when to execute a trade.
Successful traders participate in various online forums 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 portfolio, but no one will remind you to manage currencies with real-world uses. There are always a few crappy coins that you could deal with for quick bucks, but the most effective cryptos to manage are those that solve existing problems. Coins with real-world uses are generally less volatile.
Don’t diversify too early or too late. And when you make a go on to buy any crypto-asset, ensure you understand its market cap, price changes, and daily trading volumes. Keeping a healthier portfolio is how you can reaping big from these digital assets.