For some time now, I have been closely monitoring the performance of cryptocurrencies to get a feel for where the market is headed. The routine taught by my elementary school teacher-where you wake up, pray, brush your teeth and eat breakfast has changed a bit to wake up, pray and then hit the web (starting with coinmarketcap) just to find out if what crypto assets are there. the red one.
The beginning of 2018 was not good for altcoins and related assets. Their performance was hampered by constant opinions from bankers that the crypto bubble was about to burst. However, the ardent followers of cryptocurrency still go ahead and truth be told, their harvest is huge.
Recently, Bitcoin returned to almost $5000; Bitcoin Cash reached close to $500 while Ethereum found peace at $300. Almost every coin is hit-except for the newcomers who are still in the excitement stage. As of this writing, Bitcoin is back on track and trading at $8900. Many other cryptos have doubled since the uptrend began and the market cap rests at $400 billion from a recent crest of $250 billion.
If you are slowly warming up to cryptocurrencies and hope to become a successful trader, the tips below will help you.
Practical tips on how to trade cryptocurrencies
• Start modestly
You’ve heard that cryptocurrency prices are skyrocketing. You may have also received the news that this trend will not last long. Some naysayers, mostly respected bankers and economists often continue to call them get-rich-quick schemes without a solid foundation.
Such news can make you invest in haste and fail to use moderation. A little analysis of market trends and currencies worth the reason to invest will guarantee you a good return. Whatever you do, don’t put all your hard-earned money into these properties.
• Understand how exchanges work
Recently, I saw a friend of mine post a feed on Facebook about one of his friends who kept selling on an exchange that he had no idea how to run. This is a dangerous step. Always review the site you want to use before signing up, or at least before you start trading. If they provide a dummy account to play with, then use that opportunity to see what the dashboard looks like.
• Don’t insist on selling everything
There are over 1400 cryptocurrencies for sale, but it is impossible to deal with them all. Spreading your portfolio across more cryptos than you can effectively manage will reduce your profits. Just pick a few of them, read more about them, and how to get their trade signals.
• Stay calm
Cryptocurrencies are volatile. This is their bane and benefit. As a trader, you must understand that wild price swings are inevitable. Uncertainty about when to make a move makes one an ineffective trader. Use hard data and other research methods to determine when to execute a trade.
Successful traders belong to various online forums where cryptocurrency discussions about 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
Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies that have real world uses. There are some crappy coins you can deal with for quick bucks, but the best cryptos to deal with are the ones that solve problems. Coins with real-world uses tend to be less volatile.
Don’t diversify too early or too late. And before you take a step to buy any crypto-asset, make sure you know its market cap, price changes, and daily trading volume. Maintaining a healthy portfolio is the way to reap big from these digital assets.