I've been paying close attention to the performance of cryptocurrencies for a while now to get a sense of the direction the market is going. My elementary school teacher told me to get up, pray, clean my teeth, and eat breakfast. These days, it's more common to get up, pray, and then browse the web (beginning with coinmarketcap) to find out which cryptocurrencies are losing value.
2018 didn't start off well for alternative currencies and related assets. The repeated predictions by bankers that the crypto bubble was poised to explode hurt their performance. But committed cryptocurrency supporters are still "HODLing" on, and they are actually getting enormous rewards.
Recently, Bitcoin Cash and Ethereum both found stability at $300, while Bitcoin retraced to roughly $5000. Nearly every coin was broken by novices who were still in the exhilaration stage. As of this writing, Bitcoin is trading around $8900 and is back on pace. Since the upward trend began, many other cryptocurrencies have doubled, and the market valuation, which recently peaked at $250 billion, is now sitting at $400 billion.
The advice provided here will be helpful if you are just starting to become interested in cryptocurrency and want to learn how to trade successfully.
How to trade cryptocurrencies: Useful advice
• Start off slowly.
You may already be aware of how rapidly bitcoin values are rising. You've undoubtedly also heard that this upward trend might not continue for very long. Some critics—mostly renowned bankers and economists—go so far as to label them as unsustainable get-rich-quick scams.
Such information may cause you to invest hastily and without exercising caution. You may be sure of good returns by doing a little research on market trends and cause-worthy currencies to invest in. Do not put all of your hard-earned money into these assets, whatever you do.
• Recognize how exchanges operate.
A friend of mine recently posted a Facebook update about one of his buddies who proceeded to trade on an exchange he knew nothing about. This is a risky move. Before registering, or at the very least before you begin trading, always evaluate the website you intend to use. Take advantage of the chance to become familiar with the dashboard if they provide a practise account.
• Resist the urge to trade everything.
Although there are over 1400 cryptocurrencies available for trading, managing them all is impractical. Your returns will be reduced if you diversify your portfolio across more cryptocurrencies than you can adequately manage. Just pick a handful, learn more about them, and discover how to get their trade signals.
• Remain sober
Cryptocurrencies fluctuate greatly. They are both cursed and blessed by this. You must realise as a trader that extreme price fluctuations are inevitable. One becomes a poor trader if they are unsure on when to act. Use objective data and other research techniques to determine the best time to execute a transaction.
Successful traders participate in a variety of online forums where market signals and trends for cryptocurrencies are discussed. Your expertise may be adequate, but you must rely on other merchants for more pertinent information.
• Intensify your diversification
Almost everyone will advise you to diversify your holdings, but nobody will point out the importance of dealing with currencies that have practical applications. There are a few worthless coins you may work with to get some fast cash, but the greatest cryptocurrencies to work with are those that address current issues. Coins with practical applications are typically less volatile.
Avoid diversifying either too soon or too late. And before you decide to purchase any cryptoasset, make sure you are familiar with its market capitalization, price fluctuations, and daily trading volumes. The key to getting the most out of these digital assets is to maintain a healthy portfolio.
