For some time now, I’ve been closely watching the performance of crypto-currencies to get an idea of where the market is headed. The routine my elementary school teacher taught me - where you wake up, pray, brush your teeth, and eat breakfast - has shifted a bit: you wake up, pray, and then rush to the web (starting with coinmarketcap) just to find out which crypto assets are in the red.
The beginning of 2018 has not been charming for altcoins and related assets. Frequent banker opinions crippled their performance that the crypto-currency bubble was about to burst. Crypto-currency enthusiasts continue to “HODL” and, truth be told, they are reaping big profits.
Recently, bitcoin has returned to nearly $50,244, bitcoin cash has neared $500 and ethereum has found peace at $3.348. Virtually every coin has been hit, except for the newcomers who were still in the excitement stage. As of this writing, bitcoin is back on track and selling for $50,244. Many other crypto currencies have doubled since the upward trend began and the market capitalization is at $400 billion, after recently hitting $250 billion.
If you are slowly warming up to crypto-currencies and want to become a successful trader, the tips below will help.
Practical tips on how to trade crypto-currencies
- Start small
You’ve already heard that crypto-currency prices are soaring. You’ve also probably received the news that this upward trend may not last long. Some naysayers, mainly bankers and esteemed economists, usually call them get-rich-quick schemes with no stable foundation.
Such news may cause you to invest in haste and not exercise moderation. A little analysis of the market trends and the currencies to invest in can guarantee you good returns. Whatever you do, don’t invest all your hard earned money in these assets.
- Understand how exchanges work
Recently, I saw a friend of mine post a message on Facebook about a friend of his who was trading on an exchange he did not know how it worked. This is a dangerous move. Always review the site you plan to use before you sign up, or at least before you trade. If they offer a dummy account to play with, familiarize yourself with the dashboard.
- Don’t insist on trading everything
There are over 1400 crypto-currencies to trade, but it’s impossible to trade them all. If you spread your portfolio over more crypto-currencies than you can effectively manage, you will minimize your profits. Just pick a few, learn about them and how to get their trading signals.
- Stay sober
Crypto-currencies are volatile. This is both their misfortune and their advantage. As a trader, you need to understand that wild price swings are inevitable. Uncertainty about when to act makes you an ineffective trader. Take advantage of your data and other research methods to make sure you know when to execute a trade.
Successful traders belong to various online forums where crypto-currencies, market trends and signals are discussed. Of course, your knowledge may be enough, but you need to rely on other traders for more relevant data.
Paxful Exchange: Over 333 Ways To Buy and Sell Bitcoin
Paxful is a peer-to-peer crypto-currency exchange and digital wallet provider. Customers can buy and sell cryptos using over 350 payment methods. We will cover how to open a Paxful wallet in our review, the account login process, minimum deposit requirements, shipping fees, and more. Find out if you can start buying and trading bitcoins on Paxful.
Click https://deliverit.blogspot.com/p/paxful-exchange-review.html for more details.
- Diversify meaningfully
Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies that have real utility. There are some crappy coins you can deal with making a quick buck, but the best cryptos to deal with are those that solve existing problems. Currencies with real utility are less volatile.
Don’t diversify too early or too late. And before you jump into buying a cryptocurrency, make sure you know its market capitalization, price changes and daily trading volumes. Keeping a healthy portfolio is the way to profit from these digital assets.
