The golden rule to financial freedom is to find passive income, which is why it’s highly recommended to put part of your savings into investments. When done right, these can generate massive profits over time, even with little effort.
The recent Bitcoin evolution has pushed the Bitcoin price to all-time highs, breaking past its 3-year record of $20,000. This development has been beneficial for not only BTC but also the rest of the cryptocurrency market. With more mainstream acceptance for coins, they’re projected to garner higher returns over the next few years. Take a look at the Ethereum price prediction and Cardano price prediction, which are expected to make a bullish comeback.
The Opportunity has brought new traders into the cryptocurrency sphere. Luckily, crypto technology has advanced enough to make it easy to buy and track your desired cryptocurrency and find information on cryptocurrency trading with thousands of blogs and videos available online.
Here, we share some cryptocurrency trading tips and other general cryptocurrency tips to help you navigate your way in this new world of blockchain-powered investments.
Read some tips on investing in cryptocurrency in 2020 and how you can maximize your potential profits.
1. Always Track Your Cryptocurrency
Day trading cryptocurrency can feel a lot like high-risk stock trading as the market is extremely volatile, and the altcoin and Bitcoin price can change at the drop of a hat. That’s why one of the essential crypto trading strategies is to keep up with your coins by tracking their respective markets.
It’ll give you leverage over making short-term buying and selling decisions, which may result in a quick profit. But if you’re looking into the long-term (which is ideal for most coins), keeping track of a coin’s historical data and value milestones will be important for making trading decisions later on.
2. Read Articles and News About Cryptocurrency
Knowledge is power, and it’s essential to be up to date with what’s happening in the crypto sphere. That means regularly checking for cryptocurrency-related news–especially those that can significantly influence a token's price. For instance, if a major institutional investor announces their decision to invest in a coin, its value may increase within days. Capitalizing on small details that others may have missed could be your claim-to-fame–but be wary and filter for the right information.
3. Go in With Realistic Expectations
A lot of people go into investments with wide eyes and unrealistic expectations of making millions. While it’s good to have expectations, this is counter-intuitive as all investments come with risks. It’s impossible to trade cryptocurrency without understanding that the market is new and unexpected. While stock analysts are getting better and better at predicting returns down to the cent, the Bitcoin price prediction won’t always have the same level of accuracy–for now.
Hence, it is best to go into Bitcoin day trading knowing there’s a chance you won’t make a profit. Investing is a lot like gambling, and anything can happen out of your control to make the scales go against you. One of our best cryptocurrency investment tips is to always be wary of this risk and manage your funds accordingly, so you don’t lose a lot of money on a single failure.
4. Only Buy Cryptocurrency from Trusted Websites
There are plenty of cryptocurrency brokers and exchanges, and while there are some great ones such as Coinbase, there are also some that are sketchy and untrustworthy. It’s easy to get swept away by too-good-to-be-true offers, such as the idea of purchasing coins without a transaction fee or being able to earn more crypto through holding. Stories of people who have been scammed aren’t rare, so it’s important to do your research and choose a trustworthy trading website.
Investing in cryptocurrency can be daunting, but it’s ultimately extremely rewarding once profit starts to roll in. This cryptocurrency trading guide covers basic tips for you to carry along your journey–but continue expanding your knowledge so you can make even bigger trading decisions. If you want to track your chosen crypto, you can monitor its progress using our main page and see how it is fairing against every other crypto on the market.
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