Learn How to Become an Excellent Cryptocurrency Trader in 2020
02 Nov 2020
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These days anyone can sign up to an exchange website and buy cryptocurrency. However, if you really want to make a decent profit and increase your portfolio over time, follow this guide.
Step 1. Choose your buying style.
Everyone has their own style and strategy when buying cryptocurrency, so you should choose the one that best fits you. The main types are:
Big one-time investments
Small one-time investments
Each has their own strengths and weaknesses, but if you want to do this long term and have success in doing it, we recommend the constant buying strategy.
The constant buying strategy will have you buy small amounts of cryptocurrency on a consistent basis like every fortnight. This way you can slowly earn cryptocurrency while also tracking the market and not forcing yourself into following just one crypto.
Step 2. Timing
When it comes to cryptocurrency trading, timing is really everything. It can make or break your potential profits. "buy low, sell high" is a phrase that so many people use. While it is true, there is so much more to it.
Of course, you can buy low but how do you know that isn't the lowest it will get? It could go very well dip even lower once you buy. It is essential to take note of how all your cryptos are doing and markdown any drops it has and check predictions to see if it was predicted or not.
Step 3. The Market and Predictions.
Following the market may seem like an obvious move. Still, you would be surprised at the number of people who buy crypto and don't pay attention to the changes in the market. You should be following the market on a daily basis to see how your crypto is going.
Predictions are something not many people have faith in as crypto is so hard to predict. But, if you see a drop in the market, you can use that and find someone who predicted the same drop. If that person predicts a certain number of drops and spikes, you should trust that person with their knowledge.
Step 4. Never be complacent.
If you buy a cryptocurrency and it spikes soon after, it will be easy to sit back and be satisfied with that and ride that one crypto. This is something many pros discourage and advise you to invest in multiple coins. Not a lot, just maybe two or three, that way you have something to fall back to, if other currency has a sudden drop.
Cryptocurrency is an amazing investment opportunity that only 3% of the world uses. This has an expected boom period coming in this year 2021. It is a better time than ever to get into cryptocurrency. To track any crypto that you buy, use our built-in crypto tracker on the main page.
All investments come with inherent risks so do adequate research before investing in anything.