Trading is not an easy job as most people think of, a smart trading requires tons of research, market analysis, technical know-how, time, patience, etc. Especially if we talk about crypto market, one has to be very smart, quick, takes decision in real time. Because as we all know crypto market is new market which has born in this era which contains huge potential as well huge risk. This blockchain based technology comes up with so many technical aspects which can fill up those missing part in which our ongoing technology is lacking like transparency, data storage etc. Since this technology evolving very fast so now many players have also landed in this market which makes this market very volatile. So if we talk about it’s trading part it has also become a very tough job as for now.
So, what should be the strategy while you trade in trade in Crypto market? Now that’s a very interesting and a legit question. So here I am gonna give you some tips which may be useful for you especially if you are a beginner. Before we make any decision to trade in crypto space the first and foremost thing which we must understand that this is not a traditional sype of trading like stocks, derivatives. Commodity market etc. this is highly risky and volatile market, your funds will always be on vulnerable stake, But there is a saying that “ Huge profit can only be earned by taking huge risks”. So here the catch is that a crypto trader must possess some qualities like Patience, smart, quick learner, learn from the mistake, Adopt the condition, never give up, etc so that were some skill that a crypto trader must possess. Now if I talk about the technical Aspect that a Crypto trader must have before making any such investments that are as below:
• Must have better understanding about cryptocurrencies.
• A solid knowledge about the project which He/she decides to invest in, because a solid project can only give you returns short as well long Run.
• Gather as much as information about the projects from different sources like Journals, Coinmarket cap, white paper, Icoreview.site, ICOBench.com, Icorating.com, Investopedia.com, quora.com, Wikipedia, etc
• One must ensure the Team behind the project have that skill which could take the project as high which the project claiming in it’s white paper, also check their linkedin profile just to have an insight about the team you interested because in forthcoming years only those projects will survive which is backed by a solid team.
• Analyse whether the project satisfy the real world solution or not.
• A short term trader must always check the total supply, maximum supply, market capitalization as less supply of token/coin can give you higher returns in short span of time if the project is solid.
• Choose exchange wisely like Binance, Bittrex, upbit, OKex, Bibox, Huobi etc where the volume trade highly as the exchanges where volumes are traded high can give you maximum returns.
• Most important part of trading is put STOP LOSS in right place at right time just to avoid potential lossess.
So those were some Important Mantra for trading in crypto market. Always remember if you are newbies in crypto space and wants make entry in space, the best time to enter is when the market is very low, people are in dilemma what to do, whether to invest in or wait for some time once the market stats recover. But the wise person is that who made decision quickly no matter what to market situation is and grab the opportunity. Also the wise person is the one who exists the market after analysing the current market situation.
Now the question arises how one could know whether this is the right time to invest in or wait lill more. So there are also some tips and tricks which can help you out from this situation.
- Look at the market trends using charts, google trends, speculations, regulations, experts opinions and then try collectively to figure it out all the information which you collected is feasible for investments at the moment or not then plan accordingly.
- Always keep an eye on the potential projects BNB, ADA, IOTA, LTC, ETC, ETH, NEO, IOTA etc and try to invest in when the prices are at lowest and you can afford to invest in at the moment.
- Speculation plays an important role in crypto space. Negative speculation always tends to dip in the market and vice-versa for a positive speculation.
- Don’t ignore any major announcement which comes from any legitimate sources such as Binance exchange, Coinbase, Krakane, IOTA, Stellar lumens, Cardano, CBOE, CFTC, regulators etc as whenever any big announcement comes from these sources we can see a drastic movement in coin market cap.
These were some tips and tricks which I hope can help you out to make any decision before you make any investments.
Also I would like through some light on new projects or we often called ICOs. If you are new investor in crypto space, there are many possibilities that you may invest in some new projects through their catchy advertisements on various social platforms. But we alert as “EVERY SHINING METAL NOT NESSASARILY BE A GOLD” here I am not against any ICO, Basically ICO can also be considered as better option to earn quickly in crypto market, even one could earn handsomely from ICO rather than as a trader but the major part in an ICO is the project which they planned to deal with in future, here its your judgement and analysis that could lead to conclusion whether the project is really solving the real world problem or not, the user of the project genuinely would be benefitted in long run what the project claiming , is there any use cases of project can be seen in the future. So these were some analysis and research that one should do before you make any investments. Before I wrap up I would just like through some light using chart below on how many genuine project or scam or failed projects came out in 2017 that sucked public money.
At last I have covered each and everything that a beginner needed to invest in crypto space and also I believe you would come to know what are the benefits and risk associated with this new emerging investments opportunity. So invest wisely and trade well as its all your money you would bear any consequences you come across and also you would prepare for losses and gains in short term but in long term as many expert claims the future of crypto currencies and blockchain technology is bright.
I deeply thanks you from reading out this article and I hope you like it. So if you like it don’t hesitate to upvote, comment and follow my blog.
Article written by : vikkyg
Connect with me:
Telegram: https://t.me/cryptonationwide
Facebook: https://www.facebook.com/CryptoforU/
Twitter: https://twitter.com/cryptonationwid
E-mail: cryptonationwide@gmail.com
Steemit : https://steemit.com/@vikkyg