Tips for successful crypto investment every trader should follow and implement
Around the end of 2020, things started to rumble. Everyone decided they wanted their shares of cryptos. Bitcoin reached a new high, and this year we have yet to witness what is going to happen on the market regarding Bitcoin and altcoins. While Bitcoin is the first and most popular currency, right behind it is Ethereum and others you should consider before you dive into crypto trading. While they may all be digital currencies, their volatility and cap are different in many ways. There are several things to consider about cryptos, and we will explain them below.
Long or short?
While Ethereum follows Bitcoin being on the steady second place of top cryptocurrencies, there is much more to it. Bitcoin is more volatile, while Ethereum appears more steady. It should already be something to consider if you look at yourself as a trader and react to the market changes. Would you rather short-buy and sell? Meaning you would be there for a couple of days or weeks and then sell as soon as the price goes up? You may found it too pressuring and decide to go with Ethereum since you can invest and wait for a couple of months without maniacally checking the crypto news. With that said, we don’t think nor advise you should “maniacally” do anything regarding the crypto market. It’s important to stay calm, and that something you learn along the way if you treat any trading as an investment rather than a quick way of earning some cash (because you are meant to fail if that’s what you think).
The right info
For trading cryptos, you will need the help of a third-party since Forex operates on the internet. Crypto brokers enable you to buy and sell cryptocurrencies, and with their service, you can advance immensely as a crypto trader. Naturally, it would be best if you made sure you are not working with scammers, and it’s not as hard as people think. Google up the company and search for the regulator website. You will find the list of regulated and licensed companies so that you can rest assured your trading account will be safe.
Twitter can be a great place for finding important crypto news daily and not getting overwhelmed. Many crypto brokers (even traders) became so successful they don’t offer their services via a company but rather tweet their daily observations, various charts, and sometimes even something funny (depending on which type of profile you like following). These can be super useful, and top crypto traders even offer courses and make podcasts. You can choose what type of content is the easiest for you to consume. Another thing people forget is books! Just because things are digital doesn’t mean books aren’t helpful – on the contrary! Even older books on trading can contain interesting and useful strategies to consider, so don’t underestimate printed paper’s power.
How it works
Once you start researching strategies and work with a broker, you will come across various technical analysis terms (which is briefly mentioned in the Crypto Twitter section). Technical analysis may be a drag for many, but it is essential for picking up various patterns over time. Every currency consists of support and resistance. It should be your main focus once you start learning more because support lowers the currency price, and resistance does the opposite.
“Breakout” is a term that might occur from time to time, and it shouldn’t surprise you. When boundaries start to fluctuate a lot, the currency tends to find another “comfortable” spot for support and resistance. Indicators play a great role here, but it also depends on which currency you are investing in.
As you can see, there are various terms you will come across, but be patient since you have all the time and there is no rush since the market runs 24/7. There will always be opportunities for investing.
In the end
Remember, patience is the key, especially in trading. You are responsible for your buys and sells because no matter what your broker tells you, you are the one who makes the call in the end. Be accountable and start small. You don’t want to get overwhelmed after a week and pull off completely. Since you are investing, you are here for the long run and gain something that can be considered a profit. Good luck.