We hear reports from various news outlets about cryptocurrency every day. With the recent market correction, there has been a lot of confusion. ABC News reported that market prices may have inflated months ago.
That’s the problem. Everyone seems to be pointing out the problem but not really wanting to solve it. The good news is that those who care enough to help others pay a fee for online courses and paid seminars.
I felt the need to write this post to share some tips and tricks to help you trade in bullish times. These tips are not the only ones I’ll be sharing. I will also include information about the most volatile cryptocurrencies, the best for day trading, and looking at trading platforms like Bitcoin Prime.
These tips are more safety rules. As soldiers would say, these rules are written in blood.
We’re not talking here about risking lives, but losing coins to trade without a guideline is not a fun moment.
How can we avoid costly mistakes? How can we make sure we are always on the right side?
First, it’s important to realize that profitable trading is not a gamble. To be able to recognize when a tip is applicable, you must pay attention to market forces such as demand and supply. It is important to absorb every tip in the guide and understand its reasoning.
Let’s get started!
Some Tips For Cryptocurrency Trading
Tip #1. Have a reason to enter each trade
Although it may seem obvious, you should have a clear purpose in trading cryptocurrency. You need to know why you want to trade cryptos, regardless of whether your goal is to day trade or scalp. You must realize that trading digital currencies is a zero sum game. For every win, there will be a loss. Someone wins, someone else loses.
The large whales that place thousands upon thousands of Bitcoins into the market order books control the cryptocurrency market. Can you guess what these whales excel at? They are patient and wait for innocent traders like us to make one mistake that will land our money.
You can lose more money if you rush your way to losing, regardless of whether you are a scalper or a day trader. We have years of market analysis and can confidently tell you that you can only remain profitable if you keep some trades off during certain periods or days.
Tip #2 Tip #2. Set profit targets and use stop losses
This link will help you to understand the concept of stop loss in trading if you haven’t heard it before.
We must know when we should exit any trade, regardless of whether we are making a profit or losing bitcoins. A clear stop loss level is a great way to reduce your losses. This skill is very rare among traders.
You shouldn’t choose a stop-loss randomly. Perhaps the most important thing to remember is that your emotions can get in the way of your decision making. A great place to start setting your stop loss is at your coin’s cost. For example, if you bought a coin for $1,000, that’s the minimum price you will trade your coin. You can always walk away with the money you have invested, even if it happens.
If you want to exit the market with a minimum profit, then this applies to profit levels. It’s not a good idea to be greedy.
Tip #3. FOMO is here!
FOMO stands for Fear of Missing Out . This is the number one reason traders give up on the art. It is not a pleasant scene to see people making huge profits from pumped up coins in a matter of minutes. These situations are not something I like as much as you.
But one thing is certain…
Watch out for the moment when the green candles appear to shout at you, telling you to jump in. The whales mentioned earlier will smile and watch you purchase the coins they purchased earlier at very low prices. What is the usual outcome? These coins end up in small traders’ hands. The next thing is for red candles to begin popping up because of an oversupply. And then, there are losses.
Tip #4. Take control of your risks
While little pigs tend to eat a lot of food, big pigs tend to eat more. This is especially true when it comes to cryptocurrency trading profits. Wise traders don’t run after huge profits. Nope they don’t!
They would rather stay put and gather small but sure profits from regular trades on the bitcoin trading .
You might consider investing less in a less liquid market. These high trades will require greater tolerance. Stop loss and profit targets points will be assigned further away from the buying level.
Tip #5. Tip #5. Volatile market conditions are created by underlying assets
The prices of most altcoins depend on the current market price of Bitcoin. It is vital to understand that Bitcoin is relative to fiat currencies and is quite volatile.
The simpler version of this is that when the value of Bitcoin goes up, the value of altcoins goes down and vice versa.
The market is normally foggy when the Bitcoin price is volatile and, as you would imagine, this prevents most traders from gaining a clear understanding of what goes on in the market. It is best to have clear targets or not trade at all.
Tip #6. Don’t Buy Simply Because the Price is Low
One common mistake beginners make is buying coins because the price seems low or affordable. Take, for example, someone who goes for Ripple instead of Ethereum support number simply because the latter is much cheaper.
The market cap of a coin is a major factor in the decision to invest.
The market caps of conventional stocks are used to gauge their value. This formula is applied to cryptocurrencies as well.
It doesn’t matter if a coin is priced at $10 per coin and has 1 million shares on the market, or if it is priced at $100 with 100,000 shares. It is therefore more rational to consider a coin’s value rather than its price when deciding whether to invest in it. A coin’s market capital is a measure of its suitability for investment.
Tip #7. Tip #7: Crowd-Sales/ICOs
Startups offer investors an opportunity to invest early in their ideas through an ICO (Initial Coin Offering). These investors receive tokens at a reduced price and a promise to purchase them on an exchange.
Time has proven that ICOs can be quite successful with records showing that some tokens ended up more than ten times the value of the projected returns.
You might be wondering what the catch is in all of this.
ICOs attracted a lot of investors due to their high returns. However, many ICOs turned out to be scams. Millions of dollars have been lost by investors.
When considering investing in an ICO, one should be cautious. It’s not science to know when or not to invest in an ICO. Instead, it is about paying attention to the details most people overlook and not focusing only on the promises of returns.
Do your research on the team behind this project to determine their reliability and ability to keep their word. You should also examine the viability and potential benefits of the ICO. Also, look into the white paper for any gaps or questions.
This will ensure that every stone is covered and that you don’t have any doubts at the end.
Tip #8. A Quick One for Altcoin Investors
A lot of Altcoins end up losing value over a certain period of time, sometimes in an unusually short period of time. It is important to remember that altcoins can lose value over time.
Daily trading volumes are one of the most important measures of coins and are ideal for long-term investments. Long-term investments are more feasible if the daily trading volume is higher.
If you’re thinking of going long term with cryptocurrencies, consider investing in some of the following coins: Ethereum (ETH), Factor (FCT), Monero (XRM), and Dash. These coins have high trading volumes on different exchanges around the globe.
You should also pay attention to the charts and note the price spikes. These patterns will help you determine the best time to buy or sell a coin.
Tip #9. Tip #9. Diversify, Diversify and Diversify!
Uncertainty is a key factor in investments. Even those that appear to provide infinite positive returns, they can be wiped out by economic conditions. Even more unpredictable are cryptocurrencies.
You can make thousands of dollars in one day, but the reverse is true. In a matter of seconds, you can lose all your investments in digital assets. Diversification is the best way to overcome such uncertainty.
Like I mentioned earlier, the value of all other coins is affected by the value of Bitcoin against the USD. All other coins are affected if BTC loses its value against the USD and vice versa. This clearly shows that diversifying your portfolio between different coins may not be enough for you to protect yourself against bullish market conditions.
Do you remember when Bitcoin was at its all-time high in late 2017/early 2018? To gain more value than the dollar, everyone knew that the best way was to purchase as many digital currencies possible.
But having a volatile base asset like Bitcoin comes with its challenges as you may have noticed in the second half of 2018. Bitcoin made a lot of people rich in the shortest time than in the history of any known investment. There were billionaires, but most people don’t realize that many people lost their money.
In spite of all this, it managed to increase its market capital by more than thirty times in the last year.
This means that it is okay for traders to keep Bitcoin as their base asset, but they also need to realize the value of the dollar cannot be overlooked. Diversifying away from one type of asset to other areas will spread your risk.
Other equally viable investments are also available that are less risky than cryptos. These include stocks, mutual funds and real estate.
Tip #10. Super Tip!
This tip will give you concrete steps to implement immediately in your trading.
Use the goal setting function by placing buy orders: Set your revenue targets by placing order books sell orders. It is impossible to predict when your order price will be met. This can help you get exactly what you need. Sell orders also attract lower transaction fees because they are market “makers”.
Keep calm while trading: It is said that the best traders are those who can keep their cool, even when things seem crazy. Yes, that sounds crazy. But you have to learn the skill of trading objectively and not emotionally.
Two cents? Do not trade until you are confident that you can make a decision about getting in or out of a trade. Emotional trades can be disastrous. Keep calm and look out for the next opportunity. There is always a better opportunity.
Don’t worry if you prefer video content. Here are some helpful tips to make your trades like a pro.
