Cryptocurrency trading, especially bitcoin trading, has caught fire over the last couple of years. The aftermath of this newfound way of investing has turned many people into millionaires and even billionaires. But crypto trading is still uncharted territory. Chances of a mistake or investing in the wrong crypto are pretty high. To ensure safety while still focusing on profit.
HERE ARE TOP 6 CRYPTO TRADING STRATEGIES
Track the Top 20 Cryptos Religiously: Each crypto brings something new to the table and it is quite possible to become emotionally invested into one or two. But what about the hundreds of others? To maximize profit and minimize loss, it is important to track the top 20 cryptos in the world on a daily basis. Not only will this habit let you uncover some hidden gems but also you will know if you have to bail out on your favorite crypto.
Keep Selling for Profits: Whenever the market is bullish on something, be it real estate, a new company’s stock or crypto, the general investor tendency is to keep investing in a sort of utopian belief that the bullish nature of their investment will stay forever. But, it does not happen. So, it is paramount that you keep selling from time to time and pocket some profit instead of waiting till the last minute before your investment gets bearish.
Follow ICOs Closely: Not every ICO will be followed by a successful crypto run but they often are. Especially if there has been a lot of hype leading to the ICO. Traditional herd mentality dictates that people will head in the direction everyone else is headed. You have to be aware of such situations to take advantage of the hype. Buy earlier than others and cash in once you have had your run.
Leverage the Leverage: A common trading technique, trading exchanges often provide you with leverage options where you can buy more than you current deposit allows. The same is the case with many crypto exchanges such as Bitmex. If you are bullish on a crypto and lack the fund to buy more, use the leverage to get your hands on bigger investment.
Buying at the Dips: Another old and wise trading technique, buying at the dips in price can quickly bolster your portfolio and when the bull runs at full speed, you can cash in heavily. But this requires regular implementation of point number 1. Only through close tracking can you distinguish a dip from a bearish turn.
Invest in the Best: Trading in cryptos without a sound knowledge of them is extremely risky. In order to maximize your chances of profit, you need to learn everything you can about cryptos and how each crypto is different from the other. This will give you an opportunity to identify the best amongst the best and invest heavily on the strongest bull.
These are just 6 techniques aimed at cutting losses and inflating your bank balance. Like any other trading market, common sense can mean the difference between profit and loss. Take these tips to heart and add more rules if you need to create a winning portfolio.