For some time now, I have been closely monitoring the performance of cryptocurrencies to feel where the market is headed. The routine that my elementary school teacher taught me – where do you wake up, pray, brush your teeth and have your breakfast, move a little to waking up, praying and then hitting the net (starting with coinmarketcap), just to find out which ones crypto assets are in the red.
The start of 2018 was not great for altcoin and related assets. Their performance was crippled by the frequent opinions of bankers that the crypto bubble was about to burst. Nevertheless, ardent followers of cryptocurrencies are still “HODLing” and, frankly, they are reaping big.
Bitcoin has recently recovered to almost $ 5,000; Bitcoin Cash approached $ 500, while Ethereum found peace at $ 300. Almost every coin was affected by newcomers who were still in the excitement phase. At the time of writing, Bitcoin is back on track and selling for $ 8,900. Many other cryptocurrencies have doubled since the beginning of the uptrend and market capitalization has remained 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.
Practical tips on how to trade cryptocurrencies
• Start moderately
You have already heard that the prices of cryptocurrencies jump sharply. You’ve probably also received the news that this upward trend may not last long. Some distrustful, mostly respected bankers and economists usually continue to define them as quick-money schemes without a solid foundation.
Such news can make you invest in a hurry and not apply moderation. A small analysis of market trends and the currencies in which you can invest can guarantee you a good return. Whatever you do, don’t invest all your hard-earned money in these assets.
• Find out how the exchange works
I recently saw a friend of mine post on Facebook a show about one of his friends who kept trading on the stock exchange, he had no idea how it was going. This is a dangerous move. Always review the site you intend to use before you register, or at least before you start trading. If they provide a dummy game account, use this option to learn what the board looks like.
• Don’t insist on trading everything
There are over 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Spreading your portfolio to a huge number of cryptos than you can effectively manage will reduce your profits. Just select a few of them, read more about them and how to get their trading alerts.
• Stay sober
Cryptocurrencies are unstable. This is both their curse and grace. As a trader, you need to understand that wild price changes are inevitable. Uncertainty about when to make a move makes an inefficient trader. Use hard data and other research methods to be sure when to make a deal.
Successful traders belong to various online forums where cryptocurrency discussions about market trends and signals are discussed. Of course, your knowledge may be sufficient, but you should 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 deal with currencies with real applications. There are a few rotten coins you can deal with for quick money, but the best cryptocurrencies to deal with are the ones that solve existing problems. Coins with real use are usually less unstable.
Don’t diversify too early or too late. And before you make the move to buy a crypto asset, make sure you know its market capitalization, price changes and daily trading volumes. Maintaining a healthy portfolio is the way to get the most out of these digital assets.