- cryptocurrency trading tips
1.1. cryptocurrency trading tips for beginners
1.2. cryptocurrency trading rules
1.3. cryptocurrency trading useful tools
The Bait and the Trade
Trading is a fickle business, especially when we talk about cryptocurrencies with their high volatility rates. The more the price grows, the higher the temptation to keep on trading. There is no end in sight at the moment to the crypto trading game, but there are some tips and tricks that might help the average trader survive the daily hurdles.
First and foremost, one should have a reason before entering each trade, thus it is critical to start a trade only when you know why to start and have a clear strategy for afterwards. By far not all traders make gains from trading, since this is a zero-sum game (for everyone who benefits someone else loses on the other side).The Altcoins market is driven by large whales just waiting patiently for innocent little fish like us to make mistakes.
A trader must meet FOMO (fear of missing out)as situations when a certain coin is being pumped up like crazy with huge two-digit gains in minutes are not funny. This leads to risk management as managing rissk wisely across a portfolio is the key to survival.
The underlying asset creates volatile market conditions and most Altcoins are traded according to the Bitcoin value. And as Bitcoin is a volatile asset (relative to FIAT) this fact should be taken into consideration, especially in the days when the Bitcoin value is moving sharply. Bitcoin and Altcoins have an inverse relationship in their value, i.e. when the value of Bitcoin rises then Altcoins are losing their Bitcoin value, and vice versa. Hence the foggy uncertainty in trading.
Most Altcoins lose their value over time. They simply bleed their value away slowly (sometimes rapidly). A trader must take this into account when holding Alts for the medium and long term, and of course choose them carefully. The projects/coins that have a higher daily trading volume and which have a widespread community behind them, with continuous development, are here to stay with us:
Ethereum ETH, Monero XMR, Factom FCT, DASH.
Some would argue that there are trading rules on the crypto market. Though the market in its current state does look like the high seas, but there is no Pirate’s code to follow. In fact, there are guidelines, rather than actual rules. First, one should make profit by knowing limits to their own greed (sell out before it is too late). Do not over-trade and lock up coins. Index rack the top 10 cryptoassets. And the golden rule – build a portfolio on Bitcoin. Enjoy it while it lasts.
Some do not have the patience to follow the rules and decide to cut corners. As such, there are trading tools to help. The most useful ones are Coinvision – a Facebook Messenger bot specialized in delivering alerts with predictions and information about the most credible crypto coins. Coinmarketcap – the most trusted index for historical snapshots of cryptocurrency market capitalizations rankings. Ledger Nano S – a Bitcoin, Ethereum and Altcoins hardware wallet, based on robust safety features for storing cryptographic assets and securing digital payments. And last but not least – Preev – a simple exchange rate index, a platform for a quick conversion of assets into a specific coin.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.