Since a while I’ve been observing the performance of cryptocurrencies to get a feel of where the market is heading. The method my elementary school teacher taught me- where you get upand pray brush your teeth and take your breakfast has shifted a little to waking up, praying and hitting the web (starting by using coinmarketcap) to determine what crypto assets are in the red.
The start of 2018 wasn’t an ideal one for altcoins and relatable assets. Their performance was affected due to the constant assertions from banks that the crypto bubble was poised to explode. Nevertheless, ardent cryptocurrency followers continue “HODLing” on, and if truth is, they’re profiting hugely.
In the last few days, Bitcoin retraced to almost $5000; Bitcoin Cash was in the vicinity of $500. Meanwhile, Ethereum found peace at $300. Best crypto insurance company Every coin was hit apart from the newcomers who were in the excitement stage. As of this writing, Bitcoin is back on the right track, and is currently trading at $8900. A number of other cryptocurrency have doubled since the increase began as well. The market capitalization sits at $400 billion from the recent peak of $250 billion.
If you’re slowly warming to the idea of cryptocurrencies and are hoping to be a successful trader, the guidelines below will help to get started.
Practical advice on how to trade in cryptocurrencies
* Start small
You’ve probably heard that prices for cryptocurrency are on the rise. You’ve likely also received news that this upward trend could not last for long. Some naysayers, mostly esteemed bankers and economists usually refer to these schemes as quick-fix schemes that have no stable foundation.
This kind of news can cause you to purchase in a rush and forget to exercise moderation. A little analysis of the markets and the most cause-worthy currencies to invest in can ensure you a good return. Whatever you do, make sure to not put all of your hard-earned money into these assets.
* Learn how exchanges work.
Recently, I saw my friend make a post on Facebook about one of his friends who then traded in an exchange. He didn’t know the details of the process. This is a risky move. Always review the site you plan to use prior to joining or, at a minimum, prior to trading. If they offer a demo account to experiment with, then take that opportunity to see how the dashboard appears.
* Do not insist on trading everything
There are over 1400 cryptos to trade, but it’s difficult to manage all of them. The spread of your portfolio across an array of cryptocurrency than you’re able to effectively manage will result in a loss of profits. Choose a handful of them, learn more about them, and how to receive their trade signals.
* Stay sober
Cryptocurrencies can be unstable. They are both a curse and their boon. As traders, you need to understand that wild price swings are inevitable. Uncertainty over when to take a decision can make you a bad trader. Leverage hard data and other methods of research to be sure when to trade.
Successful traders participate in different online forums where discussion on market trends as well as signals are discussed. Your knowledge might be adequate, but in the end, you must rely on other traders to get more accurate information.
* Diversify in a meaningful way
Virtually everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies with real-world uses. There are a few bad coins that you can deal with to earn quick bucks but the most effective cryptos to use are those that address existing issues. Coins with real-world use tend to be more stable.
Do not diversify too early or late. And before you make a move to buy any crypto-asset, ensure you know the value of its market cap, price fluctuations and daily volume of trading. Making sure your portfolio is healthy is the best way to make enormous profits rewards from these digital assets.