For some time now, I have been closely monitoring the performance of cryptocurrencies to feel where the market is going. The diary that my elementary school teacher taught me – where you woke up, prayed, brushed your teeth, and picked up breakfast – changed a bit to know what crypto assets were available, such as waking up, praying, and then hitting the web (starting with coinmarketcap). Red.
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The start of 2018 was not a favorite for altcoins and related entities. Bankers’ comments that the crypto balloon was about to explode often weakened their performance. However, the followers of the fiery cryptocurrency are still “HODLing” and, to be honest, are getting great products.
Recently, Bitcoin withdrew to almost $ 5,000; Bitcoin Cash approached $ 500, while Ethereum made peace at $ 300. Virtually every coin was different from the newcomers who were still in the excitement phase. As of this writing, Bitcoin is back on track and selling price is $ 8,900. Many cryptocurrencies have doubled since the upward trend began and market capital has risen from a recent $ 250 billion peak to $ 400 billion.
If you are slowly warming up to cryptocurrencies and want to be a successful trader, the following tips will help you.
Practical tips on cryptocurrency trading
• Start with humility
You have already heard that cryptocurrency prices are rising rapidly. You have probably heard that this upward trend will not last long. Some brethren, mostly respected bankers and economists, continue to view them as enrichment schemes that usually do not have a solid foundation.
Such news can cause you to invest in a hurry and not be able to moderate. A little analysis of market trends and decent currencies that will encourage you to invest can provide you with a good return. Whatever you do, don’t invest all the money you earn in these creatures.
• Understand how exchanges work
I recently saw a friend post on Facebook about one of his friends who went shopping in exchange. This is a dangerous move. Always review the site you want to use before registering or at least starting trading. If they offer a fake score to play around, use this opportunity to learn what the dashboard looks like.
• Don’t insist on trading everything
There are more than 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Distributing more cryptocurrencies than you can effectively manage your portfolio will minimize your profits. Choose a few of them, read more about them and how to get trading signals.
• Stay awake
Cryptocurrencies are volatile. This is both their taste and their grace. As a trader, you must understand that price changes are inevitable. Uncertainty about when to act makes an ineffective trader. Use rigorous data and other research methods to make sure when the trade will take place.
Successful traders belong to various online forums where cryptocurrency discussions related to market trends and signals are discussed. Of course, your knowledge may be enough, but you should rely on other traders for more relevant information.
• Diversify meaningfully
Virtually everyone will tell you to expand your portfolio, but no one will remind you to deal with currency with real use. There are a few bad coins you can handle for a quick dollar, but the best cryptocurrencies are the ones that solve the existing problems. Coins used in real life are less volatile.
Don’t diversify too early or too much. Make sure you know your market capital, price changes, and daily trading volumes before taking any action to buy any crypto asset. Keeping a healthy portfolio is one way to get the most out of these digital assets.