For some time now, I have been watching closely the performance of cryptocurrencies to get an idea of where the market is heading. The routine my elementary school teacher taught me: where you wake up, pray, brush your teeth and have breakfast, has changed a bit to wake up, pray and then hit the web (starting with coinmarketcap) just to know in what cryptographic assets are there in red.
The start of 2018 was not great for high purses and related assets. Its performance was paralyzed by the frequent opinions of bankers that the cryptocurrency bubble was about to burst. Still, ardent fans of cryptocurrencies are still “HODLing” and, so to speak, are reaping a lot.
Recently, Bitcoin recovered nearly $ 5,000; Bitcoin Cash approached $ 500, while Ethereum found peace at $ 300. Virtually all coins were affected by newcomers who were still in the emotion phase. As of this writing, Bitcoin is back on track and selling for $ 8900. Many other cryptocurrencies have doubled since the upward trend began and the market capitalization stands at $ 400 billion, from the recent $ 250 billion crest.
If you are slowly heating up cryptocurrencies and want to become a successful trader, the following tips will help you.
Practical tips on how to operate cryptocurrencies
• Start modestly
You’ve already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the news that this uptrend may not last long. Some followers, mostly esteemed bankers and economists, often call them quick enrichment systems with no stable foundations.
This news can make you invest in a hurry and not apply moderation. A little analysis of market trends and currencies invested in reasons that can cause you can guarantee you a good return. Whatever you do, don’t invest all your money earned in these assets.
• Understand how exchanges work
Recently, I saw a friend of mine post a Facebook feed about one of his friends who went to trade on a stock exchange that had zero ideas about how it works. This is a dangerous move. Always check the site you want to use before you register or at least before you start operating. If they provide a fictitious account to play with, take this opportunity to learn what the board looks like.
• Don’t insist on negotiating everything
There are over 1400 cryptocurrencies to trade, but it is impossible to deal with them all. Extending your portfolio to a large number of cryptocurrencies that you can manage effectively will minimize your profits. Just select a few, read more about them and how to get their trading signals.
• Stay sober
Cryptocurrencies are volatile. This is both their doom and their gain. As a trader, you need to understand that wild price changes are inevitable. Uncertainty about when to make a move makes you an ineffective trader. Take advantage of data and other research methods to make sure when you perform an operation.
Successful traders belong to various online forums where discussions about cryptocurrencies on market trends and signals are discussed. Sure, your knowledge may be enough, but you need to rely on other traders to get more relevant data.
• Diversify significantly
Virtually everyone will tell you to expand your wallet, but no one will remind you to deal with coins with real-world uses. There are some shitty coins that you can deal with to get quick money, but the best cryptocurrencies with which you can fix existing problems. Coins with real-world uses tend to be less volatile.
Don’t diversify too early or too late. And before you make a move to buy any cryptocurrency asset, make sure you know its market limit, price changes, and daily trading volumes. Maintaining a healthy portfolio is the way to leverage these digital resources.