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Trading is one of those arts that can never be perfected and losses will always be an inevitable reality. There are too many timing factors involved and even insider trading is not a sure way of gaining profit, but rather a prison sentence. However, there are some generalized tips that can be of use to anyone who wishes to try their luck at trading and is ready to accept some losses in the pursuit of some quick cash.

 

First and foremost, it is important to understand that Bitcoin and cryptocurrencies are commodities and not stocks or shares. The price they bear may well be the only similarity. The technology behind a cryptocurrency’s decentralized nature means that it is uncontrollable. The fact that Bitcoin has recently punched through the $12,000 mark can only be proof of one of two things – a monumental bubble or real demand spurred by the technology’s potential.

The value of Bitcoin comes from its potential use as it bypasses traditional banking institutions by removing third parties from the mix, meaning less fees and shorter transaction periods. Bitcoin is subject to price volatility as it does not have the fundamentals that investors typically use to analyze when valuing an asset.

 

Determining a sound investment strategy means the longer the holding – the less risk incurred. Initially investing in USD and cost averaging purchases of Bitcoin reduces risk as well. Also, if one has many Bitcoins, there is surely no hurry to sell, given the meteoric price rise.

 

Though hedging is one alternative, it is important to consider Altcoin cryptocurrencies as they are less subject to speculation like Bitcoin. They have smaller market caps as each has purpose and utility. Monero, ZCash are just two to name but a few. Diversification of the portfolio is key in this regard.

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Though multiple exchanges exist on the market today, most trade manually. However, automated Bitcoin traders have emerged and use algorithms to analyze the market, then adjust portfolios. Such algorithms are trade secrets.

 

The only real way of creating a sound trading strategy for trading cryptocurrencies is keeping an open mind and keeping both eyes on the horizon. This means constant monitoring of the market and forums to catch whiffs of changing winds. However, even this does not guarantee profits as most crypto traders quit within a year of trading.

 

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

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.

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