For some time now, I have been closely watching 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 from waking up, praying and then getting on the web (starting with coinmarketcap) just to know what cryptographic assets there are. the red.
The start of 2018 was not pleasant for altcoins and related assets. Its performance was paralyzed by the frequent opinions of bankers that the cryptocurrency bubble was about to burst. However, ardent fans of the cryptocurrency are still “HODLing” and the truth is they are reaping a lot.
Recently, Bitcoin went back to almost $ 5000; Bitcoin Cash reached $ 500, while Ethereum found peace at $ 300. Virtually all the coins were struck apart from the newcomers who were still in a phase of excitement. At the time of 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 since the recent $ 250 billion peak.
If you are slowly warming up in cryptocurrencies and want to become a successful trader, the following tips will help you.
Practical tips on how to operate with cryptocurrencies
• Start modestly
You’ve already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the news that this upward trend may not last long. Some opponents, mostly esteemed bankers and economists, often call them schemes to get rich quickly without a stable base.
This news can make you invest quickly and not apply moderation. A small analysis of market trends and currencies worthy of investing can guarantee you a good return. Whatever you do, don’t invest all the money you’ve earned with effort in those assets.
• Understand how exchanges work
Recently, I saw a friend of mine post a Facebook feed about one of his friends who happened to be trading on an exchange, he had no idea 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 simulated account to play with, take this opportunity to learn how the board looks.
• Don’t insist on negotiating everything
There are over 1400 cryptocurrencies to trade, but it is impossible to deal with them all. Spreading your portfolio to a large number of cryptocurrencies that you can effectively manage will minimize your profits. Just select some of them, read more about them and how to get their trading signals.
• Stay sober
Cryptocurrencies are volatile. This is his doom and his welcome. As a trader, you need to understand that wild price changes are inevitable. Uncertainty about when to make a move makes one an ineffective trader. Take advantage of hard data and other research methods to make sure when running a trade.
Successful traders belong to various online forums where discussions about cryptocurrencies on market trends and signals are discussed. Of course, your knowledge may be sufficient, 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 that you have to deal with coins with real uses. There are a few shitty coins you can deal with for quick money, but the best cryptocurrencies to deal with are the ones that solve existing problems. Coins with real uses tend to be less volatile.
Don’t diversify too soon or too late. And before you make a move to buy any cryptocurrency, make sure you know its market capitalization, price changes, and daily trading volumes. Maintaining a healthy portfolio is the way to leverage these digital assets.