The cryptocurrency craze has become the talk of this year. More and more people are finding the Blockchain technology exciting and profitable. As the technology is new, even the traders or investors are apparently new to this space. In order to assist the enthusiasts in this burgeoning crypto industry, we have created an easy-to-understand cryptocurrency strategy guide, which helps traders from committing any trading mistakes.
First, we shall discuss the daily cryptocurrency trading tips, and then we can discuss the common mistakes by the investors.
Top 8 Cryptocurrency Trading Strategies
So, what are the ultimate crypto trading strategies for Beginners & Pros?
Learn as much as possible Google can help power all sorts of knowledge regarding cryptocurrencies and Blockchain-related applications. So, learn more about these topics. First of all, learn about all the crypto jargons like HODL and dynamics like “pump and dump”. Youtube has several Blockchain and cryptocurrency-related material, which you can go through to build on your crypto knowledge. This is the foremost and one of the best crypto strategies to trade cryptocurrencies.
Follow crypto leaders and crypto news
Follow the tweets by the important people in the crypto world. Pay special attention to the crypto markets news. Positive news has a huge impact on the demand for a cryptocurrency. It also means to avoid the negative press which acts as FUD which is short for Fear, Uncertainty, and Doubt. You can follow the latest crypto market news and insights as well.
Analyse about the coin you’re planning to invest
Ask yourself these four questions before finally giving into:
Which market is the coin disrupting, for eg virtual payments, cloud storage, etc?
What is the technology behind the currency? Is it easy to use, accessible and scalable)
Research about the minds behind the creation of the coin, know its market potential, read about it more and more from sources like CoinMarketCap.
Last, but not the least what is the acceptance ratio of that coin. What is it that distinguishes this coin from its peers, i.e, what is the USP?
Advice: Beware of the FOMO factor. Do not invest because you feel like you are missing on the opportunity. This is the top cryptocurrency trading strategy.
1, Install a price ticker
A price ticker will alert you whenever the price fluctuates. So, it’s better to install on your phone. Depending on the price, you can make wise investment decisions. Actually, it is not the price which should be the sole factor to watch out before investing. You should always observe the market capitalization as that is an eminent factor. This is one of the common day to day altcoin trading strategy (crypto trading strategy). One of the best crypto to day trade is EOS.
2, Trading bots
If you are not able to understand the difficult technology behind Blockchain technology, you should start using a trading bot with API enabled will help do the trading for you. This is one of the best cryptocurrency trading system for amateur traders.
HODL in the crypto world means holding onto your cryptocurrencies when things are not going as planned. HODL is not a typo after it appeared in the Bitcoin talk forum by a member named Gamkyubi in 2013 under the thread “I am hodling”. (Crypto trading tips 2019)
Let’s talk about the mistakes which can lead to a great loss:
4, Crypto Trading Mistakes
Chasing pump and dump schemes
Pump and dump is a scheme that boosts the price through recommendations based on false, misleading or greatly exaggerated statements. So, it’s better to not fall in these traps.
5, Not diversifying your portfolio to protect your investment
The most effective strategy for minimizing risk is diversification. A well-diversified portfolio consists of different types of securities from diverse industries, with varying degrees of risk. While diversification can’t guarantee against a loss, it is the most important component to helping you reach your long-range financial goals, while minimizing your risk.
Never let FOMO ( Fear Of Missing Out ) control your emotions. Try to feel and think logically to shatter the dreams of high returns. When you notice the market going up, try to avoid feeling like investing in the hopes of it going higher.
Not protecting your accounts with 2-factor authentication
Two-factor authentication, or 2FA, adds an extra layer of security to your account.
When logging into your account, in addition to your email and password you’ll enter a code generated by an authentication app on your smartphone. This secures the account.
7, Falling for phishing scams and email account scams or airdrop scams
Falling for an email scam is something that can happen to anyone. It’s a frightening concept and one that frequently results in undiluted panic. Also known as a phishing scam, it involves using email and fraudulent websites to steal sensitive information such as passwords, credit card numbers, account data, addresses, and more.
With the increasing popularity of cryptocurrency airdrops, it is no surprise that there are also many scams out there.
8, Losing your private keys
This may be the greatest mistake in the crypto community to date. If you’re unfamiliar with what your “private keys” are, or what types of wallets you should be using, Losing private keys will waste all your money as you can’t do anything if you have forgotten the password. These are the cryptocurrencies tricks which should help you become an informed investor. It will save you from making whimsical decisions. At the same time, never ever dare to commit any of the crypto mistakes mentioned above, especially the last point.