Finally, always check, double check and triple check while trading – a simple tip that even seasoned crypto holders forget. When setting up buy or sell orders, make sure your numbers add up, as even the smallest of typos can see you lose an eye-watering amount. Also, when dealing with an exchange, make sure you’re sending coins to the correct address.
I’ve met so many people that are speculating in crypto these days that have never even read Satoshi’s white paper on Bitcoin. Not only are they not practitioners (tech experts), they even are too lazy or too blinded by greed to even do a baseline level of work. There are many easy ways to quickly get up to speed on crypto and educate oneself you just have to do the work (one of my go-to resources is a company called Oddup which is an ICO/Crypto rating company used by all the major crypto hedge funds and institutional players).
Lots of traders use bots (you might want to as well if you have the chops). To the next point, lots of traders use trading bots. Some are white hat; some will try to get you to make bad trades. Keep an eye out for bots. If you are using a bot, be careful, there are bots designed to exploit poorly programmed bots. In general, if you don’t have a solid grasp of TA and crypto trading, skip the bot. They are only as useful as the strategies they run.
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As well as buying crypto using fiat currency, a centralized exchange is somewhere you can store funds and exchange the likes of Bitcoin for other coins and tokens. Examples include Coinbase, Kraken and Binance. Although there is less risk that your funds will disappear if you forget a password or your private key, it’s important to go with reputable providers who have high security standards. That’s because there have been cases where millions of dollars have disappeared from these exchanges overnight through hacking.
I’m not going to go too deep into other ways you can earn money with cryptocurrencies because I don’t do them myself. At least not right now. Passive income is great. After you make an initial investment, you mostly sit back and watch the money roll in. It’s like buying a home and renting it out - there will be some maintenance issues but it’s mostly passive income.
Real trading strategies should be based on quantifiable specifications that can be analyzed based on historical data that can be used for future trading scenes. Finding the right strategy to help traders earn more is actually the first step of the ladder to success. If you are reading this today and you are looking for strategies to help you out, then you have done the first step. What people fail to realize is that a very good strategy is something that starts before the main planning occurs. Without further delay, let’s get right into that!
Many litecoin investors followed the wrong herd last December when its founder Charlie Lee sold all of his shares in the company to avoid a conflict of interest. This should have indicated to investors that the price would not hold and would decline, Spatafora says. Instead of selling, many crypto investors bought more litecoin "like idiots when it was not sustainable," he says.
Understand blockchain – You don’t need to understand the technical complexities, but a basic understanding will help you respond to news and announcements that may help you predict future price movements. It is essentially a continuously growing list of secure records (blocks). Cryptography secures the interactions and then stores them publicly. They serve as a public ledger, cutting out intermediaries such as banks.
Blockfolio is an extremely powerful digital currency investment tracking app that is ideal for individuals that hold an extremely diversified portfolio. Operating diverse portfolios can often be unwieldy and, due to their cumbersome nature, require constant scrutiny and management. The Blockfolio app has been specifically designed for highly diversified investors, and streamlines the process of tracking where and when you bought and sold, as well as the value of your current holdings.
Arbitrage is the process of buying then immediately selling something for a profit. This is possible when there are price differences between different marketplaces. For example, buying certain DVDs at your local store for $10 only to sell them online for $20 each, doubling your money in the process. In our case, it’s buying cryptocurrency on one exchange and then immediately selling it at another. Arbitrage is based on exploiting market inefficiencies and is popular in all kinds of markets, including the stock and FOREX markets.
Sure, many lose a lot of money during the panic of a cryptocurrency crash or sell off. But, those that know what they are doing have the range of tools needed to make big profits during this time. Here are five of the best ways to turn a profit during cryptocurrency market turbulence, and how you can easily leverage all of them at once in order to make the most out of the current market opportunities.
Stop limit orders are really only useful when selling coins. They allow us to set a condition: we specify a price, and if the price becomes less than or equal to that price, a market order is automatically placed for us. The advantage here is that if we need to step away and will not be able to watch the price, we have some protection if the market begins to plummet. The disadvantage is that we are counting on there being good buy orders available to fulfill our sells. If a massive amount of market sell orders were to be executed right before your stop is triggered, it’s technically possible to be left with the bottom of the barrel. This has happened before, but is not common.
The most important thing about the best cryptocurrency trading platforms is their reputation. The reviews for Binance are through the roof as it is easy to use and most importantly – SECURE! The team behind Binance has a proven record in both cryptocurrency and finance in general. Personally, I’ve had no problems with Binance thus far and when I did open a support request I found the team to be super fast and helpful at getting back to me.
It is important investors realize not all exchanges and brokers that offer delivery of the underlying Bitcoin are created equal. Some firms have fallen victim to theft by hackers who have stolen Bitcoin belonging to clients whose money was held at the exchanges. Meanwhile, other Bitcoin exchanges have gone bankrupt (as in the case of Mt. Gox), as a result of fraud or mismanagement.
Similar to Binance, KuCoin holds its roots in China too. Although, after the crackdown, it moved to Hong Kong and started with a sharp growth through its affiliate program. As KuCoin holds the reputation of being an early adopter of cryptos, you might want to consider it for long-term holdings. Your long-term HODL plans can lead you to earn good money.
Fiat Currency is still a thing; BTC isn’t legal tender; we don’t live in a Libertarian utopia; Governments and Banks aren’t as into Bitcoin as you. If you get caught up in the Bitcoin craze, it can easy to forget that the world’s governments aren’t super stoked on Bitcoin. Libertarians, Tech Geeks, Gangsters, these people are bullish on Bitcoin; world governments and banks, not so much. Last I checked, world governments had a little more power. Betting against them is a risky bet. As we move into the future states have started embracing Bitcoin and crypto, but there is no plan for a state-less state built upon digital currency. Digital currency is at best a supplemental asset class. Be realistic about the potential future here, it is bright, but it is likely not to look like your specific flavor of utopia.
Know what you are investing in, and know the risk. Bitcoin is speculative and volatile. Buying near $Xk means buying near the highest price Bitcoin has ever been. Some think Bitcoin is going to $X2k; some think it is going to $10. It is easy to get euphoric and think whatever today’s price is a safe bet. Historically that has been true or not depending on the weather on a given day.
Accept that coins can go to zero, and even good coins can lose up to 80% of their value (especially against BTC). There are many coins that didn’t make it to 2018 that were once highly valued and popular. Meanwhile, even some giants of today like ETH and XRP have seen their value in BTC prices drop to depressing levels. You should prepare for this mentally and have a strategy that factors this in. If you buy the dip in ETH from .15 down, .08 may look like an excellent price, but you have to be ready for .02. ETH holders who didn’t prepare for this had a depressing June 2017 – December 2017. Heed my warning, that new coin doesn’t have to moon twice, it can go to literal zero, and even those that will moon again… they can have long seasons of stagnation in between (where they lose value against BTC for months on end). See the Crypto Graveyard and please look at the historic charts of major alts like XRP (the gap between moons is real and some coins really don’t make it).