January 2022: Since the beginning of time, I've been watching the progress of cryptocurrency to gauge the direction the market is taking. The pattern my teacher in elementary school taught me to get up and pray, then brush my teeth, and eat my breakfast has changed to getting up, praying, then surfing the internet (starting at coinmarketcap) to determine which cryptocurrency assets are trading in the red.
The first quarter of 2018 wasn't an ideal one for altcoins or other comparable assets. Their performance was affected by the constant rumors from bankers that the cryptocurrency bubble was set to explode. However, many cryptocurrency enthusiasts continue "HODLing" on and truth to tell, they're profiting hugely.
In the last few days, Bitcoin retraced to almost $5000. Bitcoin Cash was close to $500 and Ethereum was able to rest at around $300. Nearly every coin suffered by newcomers, which were in the excitement stage. As of the moment, Bitcoin is back on the right track, and is currently trading at $8900. Other cryptos have also nearly doubled since the uptrend began, and the market capitalization is now at $400 billion, which is a significant increase from the current peak of $250 billion.
If you're just beginning to warm up to cryptocurrency and would like to be an expert trader, these suggestions below can help you to get started.
Practical advice on how to trade cryptocurrency
* Begin modestly
It's been reported that prices for cryptocurrency are on the rise. You've likely also received information that this trend could not last very long. Certain naysayers mainly respected economists and bankers, tend to refer to them as schemes to make quick money with no solid foundation.
This news could make you invest quickly and not be able to manage your investments. A quick analysis of trending markets and causes-worthy investments in currencies will yield you a decent return. Whatever you do, make sure to not put all your money in these investments.
* Learn about how exchanges function.
Recently, I came across my friend sharing a feed on Facebook about one of his acquaintances who later traded on an exchange, but he didn't know the details of how it works. This is a risky move. Be sure to check the website you plan to use prior to you signing up or, at a minimum, before you begin trading. If they offer a demo account for you to test you can use it to get familiar with how their dashboard appears.
* Don't be a slave to trading everything
There is more than 1400 cryptocurrency to trade, however, it's not possible to handle every one of them. If you spread your portfolio over many different cryptocurrencies that you are able to effectively manage will reduce your profit. Pick a few of them, then read about them, and learn how to obtain their signals for trading.
* Stay sober
Cryptocurrencies can be unpredictable. This is both their curse as well as a boon. As traders, you need to realize that price swings are inevitable. Indecisiveness about when to make a decision can make you a bad trader. Make use of data from hard sources and other methods of research to know when it is the right time to make the trade.
Successful traders are part of different online forums where discussions on market indicators and trends are discussed. Your knowledge might be adequate but you should trust other traders to provide more pertinent information.
* Diversify effectively
Everyone will advise that you should diversify the portfolio of your investments, however, nobody will tell you to work in real-world currencies. There are a few bad coins that you could deal with for quick cash however, the most reliable coins to use are ones that can solve current issues. Coins that have real-world applications tend to be more stable.
Don't make the mistake of diversifying too soon or late. Before you decide to invest in any crypto asset make sure you are aware of the price, market cap, and daily volume of trading. Maintaining a strong portfolio will help you benefit from these crypto assets.
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