For some time now, I have already been closely observing the performance of cryptocurrencies to obtain a feel of where the market is headed. The routine my elementary school teacher taught me-where you wake up, pray, brush your teeth and take your breakfast has shifted a little to waking up, praying and hitting the web (starting with coinmarketcap) just to know which crypto assets come in the red.
The beginning of 2018 wasn’t a pleasant one for altcoins and relatable assets. Their performance was crippled by the frequent opinions from bankers that the crypto bubble was going to burst. Nevertheless, ardent cryptocurrency followers remain “HODLing” on and honestly, they are reaping big.
Recently, Bitcoin retraced to almost $5000; Bitcoin Cash came near $500 while Ethereum found peace at $300. Virtually every coin got hit-apart from newcomers that were still in excitement stage. As of this writing, Bitcoin is back on track and its selling at $8900. Many other cryptos have doubled since the upward trend started and the market 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 become 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 just do it to term them as get-rich-quick schemes without stable foundation.
Such news could make you choose hurry and fail to apply moderation. A little analysis of the marketplace 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 his friends who continued to trade on an exchange he had zero ideas on what it runs. This is the dangerous move. Always review the site you would like to use before signing up, or at least before you start trading. If they provide a dummy account to experiment with, then take that opportunity to learn how the dashboard looks.
? Don’t insist on trading everything
There are 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 how to get their trade signals.
? Stay sober
Cryptocurrencies are volatile. That is both their bane and boon. As a trader, you should recognize that wild price swings are unavoidable. Uncertainty over when to produce a move makes one an ineffective trader. Leverage hard data along with other research methods to be certain when to execute a trade.
Successful traders participate in 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 deal with currencies with real-world uses. Here are a few crappy coins you can cope with for quick bucks, however the best cryptos to manage are those that solve existing problems. Coins with real-world uses are usually less volatile.
Don’t diversify prematurily . or too late. And before you take action to buy any crypto-asset, make sure you know its market cap, price changes, and daily trading volumes. Keeping hardware is the solution to reaping big from these digital assets.