For some time now, I have already been closely observing the performance of cryptocurrencies to have a feel of where the market is headed. The routine my elementary school teacher taught me-where you awaken, pray, brush your teeth and take your breakfast has shifted just a little to waking up, praying and hitting the web (you start with coinmarketcap) just to know which crypto assets are in the red.
The beginning of 2018 wasn’t a lovely one for altcoins and relatable assets. Their performance was crippled by the frequent opinions from bankers that the crypto bubble was about to burst. Nevertheless, ardent cryptocurrency followers remain “HODLing” on and honestly, they are reaping big.
Recently, Bitcoin retraced to almost $5000; Bitcoin Cash came close to $500 while Ethereum found peace at $300. Virtually every coin got hit-apart from newcomers that were still in excitement stage. Around this writing, Bitcoin is back on track and its own selling at $8900. Many other cryptos have doubled since the upward trend started and the marketplace cap is resting at $400 billion from the recent crest of $250 billion.
If you are slowly starting to warm up to cryptocurrencies and wish to turn into a successful trader, the tips below will help you out.
Practical tips on how to trade cryptocurrencies
? Start modestly
You’ve already heard that cryptocurrency prices are skyrocketing. You’ve also probably received the news headlines that this upward trend may not last long. Some naysayers, mostly esteemed bankers and economists usually go ahead to term them as get-rich-quick schemes without stable foundation.
Such news could make you choose hurry and fail to apply moderation. Just a little analysis of the market trends and cause-worthy currencies to purchase can guarantee you good returns. Anything you do, do not invest all of your hard-earned money into these assets.
? Understand how exchanges work
Recently, I saw a friend of mine post a Facebook feed about one of is own friends who continued to trade on an exchange he had zero ideas on how it runs. This is a dangerous move. Always review the site you want to use before registering, or at least before you start trading. If they provide a dummy account to play around with, then take that possibility to understand how the dashboard looks.
? Don’t insist on trading everything
You can find over 1400 cryptocurrencies to trade, but it’s impossible to deal with every one of them. Spreading your portfolio to a huge number of cryptos than you can effectively manage will minimize your earnings. Just select a few of them, read more about them, and ways to get their trade signals.
? Stay sober
Cryptocurrencies are volatile. hardware is both their bane and boon. As a trader, you need to recognize that wild price swings are unavoidable. Uncertainty over when to make a move makes one an ineffective trader. Leverage hard data and other research methods to be sure when to execute a trade.
Successful traders belong to various online forums where cryptocurrency discussions regarding market trends and signals are discussed. Sure, your knowledge could be sufficient, but you have to depend 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 cope with currencies with real-world uses. There are a few crappy coins you can deal with for quick bucks, but the best cryptos to cope with are the ones that solve existing problems. Coins with real-world uses are generally less volatile.
Don’t diversify too early or too late. And before you take action to buy any crypto-asset, ensure you know its market cap, price changes, and daily trading volumes. Keeping a healthy portfolio is the solution to reaping big from these digital assets.