Practical tips for trading cryptocurrencies


For some time now I’ve been closely monitoring the performance of cryptocurrencies to get a feel for where the market is headed. The routine my elementary school teacher taught me of waking up, praying, brushing your teeth and eating breakfast has shifted a bit to waking up, praying and then going online (starting with coinmarketcap) just to know which crypto assets are present the red.

The start of 2018 wasn’t a nice one for altcoins and allocable assets. Their performance has been crippled by the frequent belief by bankers that the crypto bubble is about to burst. Nonetheless, cryptocurrency enthusiasts still “HODLing” and to be honest they are reaping a lot.

Recently, Bitcoin has dropped to almost $ 5,000; Bitcoin Cash hit nearly $ 500 while Ethereum found peace at $ 300. Virtually every coin has been hit except for newbies who were still in the excitement phase. As of this writing, Bitcoin is back on track, selling at $ 8,900. Many other cryptos have doubled since the uptrend began, and market cap is at $ 400 billion from its recent spike of $ 250 billion.

If you are slowly getting to grips with cryptocurrencies and want to become a successful trader, the following tips will help you.

Practical tips for trading cryptocurrencies

• Start humble

You’ve already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the message that this upward trend may not last long. Some naysayers, mostly well-respected bankers and economists, typically refer to them as “get-rich-quick” plans with no stable foundation.

Such messages can lead you to invest in a hurry and not use moderation. A little analysis of market trends and sensible currencies to invest in can guarantee you good returns. Whatever you do, don’t invest all of your hard earned money in these assets.

• Understand how the exchange works

I recently saw a friend of mine post a Facebook feed about a friend of his who was trading on an exchange he had no idea how it was going. This is a dangerous step. Always check the website you plan to use before signing up, or at least before you start trading. If they provide a dummy account to mess around with, take this opportunity to see what the dashboard looks like.

• Don’t insist on doing everything

There are over 1400 cryptocurrencies to trade, but all of them are impossible to deal with. Spreading your portfolio across a large number of cryptos that you can manage effectively will minimize your profits. Just choose some of them, read about them and learn how to get their trading signals.

• Stay sober

Cryptocurrencies are volatile. This is both their curse and their blessing. As a trader, you need to understand that wild price fluctuations are inevitable. Uncertainty about when to make a move makes you an ineffective trader. Use hard data and other research methods to be sure of when to take 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 will have to rely on other traders for more relevant data.

• Diversify sensibly

Virtually everyone will tell you to add to your portfolio, but no one will remind you to look at currencies with real-world uses. There are a few crappy coins to deal with for a quick buck, but the best cryptos are the ones that solve existing problems. Real-life coins tend to be less volatile.

Don’t diversify too soon or too late. And before you take a step into buying any crypto asset, make sure you know its market cap, price changes, and daily trading volume. Keeping a healthy portfolio is the way to reap a lot from these digital assets.


Source by Rodgers Aluvisia