There are countless ways to become rich, and cryptocurrency is one of the latest and most straightforward ways given that you learn the tricks of the trades. Cryptocurrency markets run 24 hours a day, 7days a week. If Gordon Gecko from Wall Street were in today’s world he would agree with Cryptocurrencies, as he says in the First Wallstreet movie — ‘Money never sleeps!’
Two Traders Durgesh and Mohit share their insights to earning from Cryptocurrencies.
#1 Learn As much as Possible
Read, watch and listen to anything Blockchain and cryptocurrency related. As they say ‘Knowledge is power!’
In the modern day thanks to Google, you can power your way through any content you need help in understanding. Learn everything from the definitions of Blockchain, to how Blockchain works. Don’t forget to understand dynamics such as pump and dump. Even mere crypto slangs such as ‘HODL‘ which means Holding Coins is vital to learn.
If you are a visual learner, use Youtube. Youtube has several How to video’s along with exciting Blockchain and cryptocurrency related material.
#2 FOMO
Never let FOMO also called Fear of Missing Out control your emotions. Try to feel and think with both your heart and brain to avoid 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.
An example was seen in June and July 2017 DGB went from 70 Satoshi straight to 2700 Satoshi, Stratis from 60,000 to 5,00,000 and XVG from 40 to 1200. In September 2017, most of the coins fell by 80%.
#3 Social connections
Join Twitter if you have not, as Tweets from Blockchain experts and Cryptocurrency influencers can change the demand for a particular cryptocurrency.
Install Telegram on your mobile if you have not already. The signal groups in Telegram will make your life in trading cryptocurrencies far easier. Plus point is you can connect with experts and start understanding trading tips from them.
#4 Go against the market
Go against the mold, which is as simple as doing the opposite. Buy when people sell and sell when people buy.
#5 Follow cryptocurrency news
Pay heed to the positive news in crypto markets. Positive news has a huge emotional 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.
#6 Invest in the top cryptocurrencies
It’s always safer and less risky to invest in a coin which is ranked top in Coinmarketcap.com. Digital coins in the top 50 are more secure and are most likely to rise. And also try to diversify the portfolio.
#7 Study thoroughly about the coin you want to invest in
Ask yourself the following questions:
• What is the technology underlying the Coin?
• How did it start?
• Who Started it?
• What the future holds?
• Reviews on other people holding the coin
• An Analysis of the Graphs
#8 Stoploss
Ensure to put stop-loss for safer returns and a less risky investment.
#9 Analyse past trends
The past tends to repeat itself and hence make decisions on buying and selling through a complete analysis on how that cryptocurrency has behaved.
#10 Security
Security of an exchange is critical. Try to use an exchange which is full time and has a 24-hour customer support in case assistance is needed.
You should always keep your coins the wallets where YOU control the private keys.
#11 Invest wisely
Not every profit needs to be withdrawn to your bank account or used. It is smart to maximize the profits by reinvesting into potential altcoins.
Coinswitch.co can crack the code for you, concerning maximizing through better investments and arbitraging using cheaper exchanges.
Divide your portfolio with popular cryptocurrency and different altcoins.
#12 Install a price ticker
Install a Price ticker on your smartphone. It will keep you alert so that when it falls to a certain price, you can buy and if it rises to a particular amount you can sell, depending on what your motive is.
#13 Trading bots
Sometimes understanding the technology behind Blockchain and Cryptocurrency can be hard. Hence using a trading bot with API enabled will help do the trading for you.
#14 A simple Bear and Bull strategy
For the investors who want to keep it simple, Buy at the Bear and Sell in the Bull!
#15 HODL
HODL at the right times, that is Holding your coins when things are not going as planned. So never put all your fiat into cryptocurrencies, but keep fiat for rainy days!
“Not every day is a bright sunny day, it can sometimes become stormy, and you have to be ready and practical.”
Source: cryptoincome.io
#16 Patience
Study trends thoroughly, and don’t conclude the relationships between Bitcoin and Altcoins. They differ according to the period and reasons. Better profits occur in due time, and looking at short-term and quick benefits will only lead to a financial risk not worth taking!
In conclusion, to be successful in the world of cryptocurrencies, you have to be a hard-working learner and a smart thinking implementer.
Disclaimer –
The views and opinions expressed here are solely of the traders Durgesh and Mohit. It does not reflect the views of CoinSwitch. Every investment and trading move involves risk; you must conduct your own research when making a decision.
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CoinSwitch.co is the world’s largest cryptocurrency exchange aggregator. It provides exchange service of 300+ coins and over 45,000+ pairs from leading exchanges like KuCoin, Bittrex, Cryptopia, ShapeShift, Changelly, and Changer. It provides an easy way for users to trade coins across multiple exchanges based on price and reliability.
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