Realize that Bitcoin isn’t the same as Blockchain. Blockchain technology is something many are bullish on, but that sentiment shouldn’t be confused with being sentiment about Bitcoin specifically. Blockchain is not Bitcoin, a company that calls itself blockchain is not the same as the technology blockchain. The new “blockchain killer” might not be.
Fundamentals cover things like crowd behavior and news flow. Crowd behavior means that when the “crowd” is piling in while the price is of a coin is pushing upward, maybe you will want to ride the momentum (with caution as these people may end up getting trapped within it), or it could be a situation where everyone is in the thing and now the coin is seeing a downturn, and they are all trying to piling out.
What would be a good portfolio for a newbie today, I just keep losing with these popular Altcoins? Are you seeing just as much significant growth today (like doubling) as before with your portfolio? I need a fresh portfolio today that has just as much potential as the day when you had bought into your Altcoins. Can you also give an idea of the percentages of the spreads you mentioned in your wallet? Also, with the influx of coins/icos, do you think alot of coins will lose value and it will be harder to find the gem amongst the rocks?
Technical analysis: . ZCOIN/ETHEREUM is in a range bound and the beginning of uptrend is expected. . The price is below the 21-Day WEMA which acts as a dynamic resistance. . The RSI is at 50. . While the RSI and the price downtrend in the Daily chart are not broken, bearish wave in price would continue. Trading suggestion: . There is a possibility of ...
Dad advice: Aim to buy low, sell high; try not to buy high, sell low. Look at the price trend, if we are at the highest point it has been in the past 24 hours (days, weeks, etc), that is inherently riskier than buying at a short term low. It can make sense to buy as the price starts to break out, but buying after a breakout at a new high while filled with excitement is a little “irrationally exuberant.” This is to say aim to “buy the dips” and often “the best time to buy is when there’s blood in the streets… even if it is your own.” Conversely, the worst time to buy is often (but not always) right after the price has shot up and everyone is manic. If you do buy high, and it ends up dropping shortly after, consider HODLing (to “HODL” is to Hold On for Dear Life as the price goes down. It is what you do when you buy high and then neglect to set a stop or if you are going long and can’t or don’t want to cash out yet). Buying the dips and holding can be dangerous in a bear market, and it can put pressure on you to sell low if you overextend, but its still often better than FOMO buying the top. Sometimes it can be wise to sell for a loss or to buy when the price is at a local high, but knowing when this is the case requires a rather high skill level. Thus, although rules sometimes are best broken, start by aiming to buy low and sell high.Two last points 1. Knowing when to take a loss is hard, buying the dips and holding is easy. 2. The dips WILL happen, you must be patient and ward off FOMO!
Don’t zoom in too much on the price trends of the moment; don’t sweat the small things. It’s easy to zoom in and get stressed when Litecoin goes from $220 to $213 (or something like that). However, these little movements only matter if you are day trading large amounts of coin relative to your total investable funds. Zoom out a bit and look at trends over larger periods of time. Don’t think of that $213 relative only to $220, think of it relative to the $100 Litecoin was at a few months back, the $400 it was at after that, and the $100 it was at just a little while ago. From that perspective, a fluctuation between $220 and $213 is nearly insignificant. I will rarely make trades on timeframes shorter than 2hr candles, and I generally am looking at 6 hr and 1 day candles, because I value my sanity and am focused on the long term trajectory of crypto. That only changes in very specific instances and with purpose. If you zoom in too much, you lose sight of overarching trends (many of which are actually stronger indicators of what is actually happening).
This is not a get rich quick scheme. While returns can be good at times, I have seen periods of stagnation, five +30% market dips and a bear market. Whenever you enter the market, it could be on the rise, in a drop or be stagnating. I have also had days and weeks where I have seen a significant decline in my portfolio. I can't predict what the market will do when you enter. Please invest for the long term. This is much more volatile and risky than the stock market.
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Similar to investing, diversification is king. To lower possible trading risks, it’s better to distribute your money into different cryptocurrencies. While some grow, some will fall and by not putting all your money on single bet you can balance the losses. That said, trading requires research and tracking changes and there are a lot of cryptocurrencies — which means a lot of research. Start with a few and expand slowly.
Needless to say, Bitcoin’s place as an alternative digital asset among cryptocurrencies has become entrenched, despite likely headwinds it will continue to face as it evolves further. The U.S. Securities and Exchange Commission (SEC) announced in early August 2017 that certain Initial Coin Offerings (ICOs) – which use cryptocurrencies for financing – would be regulated as securities.
As mentioned above, get ready for tracking and research. If you want to be successful, track the latest cryptocurrency news, ranking and key indicators daily. Join the discussion threads on Reddit and Telegram. And don’t be afraid to ask fellow traders questions. If you look at those discussion threads, you will see that it is a very engaged and helpful community. This will help you to make smarter decisions. But don’t do the FOMO trade (Fear Of Missing Out). Don’t be caught in the fear of missing out the next big opportunity in the crypto space.
Modes of Payment- Cryptocurrency exchanges allow you to deal in crypto through different modes of payment like Debit card, Credit card, Wire transfer, and even PayPal. However, the number of payment modes offered by different exchanges might differ. You should choose a platform that offers you multiple options for payment purposes rather than the ones having a single mode.
One of the best resources for finding out about current or upcoming ICOs is here. If you see a coin that peaks your interest, be sure to be extra diligent when evaluating it. Since we have no historical data to gauge how the coin might perform, it’s very important to understand the real-world purpose of the coin. Another thing to note is whether the ICO is capped or not. Some ICO’s will be capped at a certain number, meaning that people who are late to the part, will need to wait for the coin to be offered on exchanges.
Let’s say on January 2, 2017, you owned $1,000 and exchanged it into euros (EUR) with another market trader at a rate of EUR€0.9565, leaving you with EUR€956.50. Then, on November 24, 2017, the value of the US dollar had fallen from EUR€0.9565 to EUR€0.8380, so you decide to exchange your euros back into US dollars. After finding someone willing to sell their US dollars for your euros, you carry out the exchange at the new price. Your EUR€956.50 is now worth $1,141.40, leaving you with a profit of a little more than 14%.
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.
In 2015 and the beginning of 2016, when Bitcoin held solid – as solid as Bitcoin can be – shuffling around $300 per one BTC, the game was trading Altcoins in order to gain more Bitcoin. It was expected that Bitcoin would grow higher in the future (the Pygmalion effect). Having a rather volatile base asset, such as Bitcoin, raises our need to compare our portfolio performance both in terms of its Bitcoin’s value and its dollar’s value. Many traders decreased the number of Bitcoin they are holding during the past year (hey, and it wasn’t hard when Ethereum got cut 70% from its Bitcoin all-time high…) although it had a nice dollar yield. Bitcoin’s growth made a lot of money for the crypto market, causing its total market cap to increase 30 times during the last year! As traders, it is important to keep Bitcoin as your base asset, but also not to forget the dollar value, and to take profit sometimes. You should always see the bigger picture – crypto is only one tier of your investment options. There are also the stock markets, real estate, bonds and many more investment opportunities. It is important to spread the risks among the crypto portfolio, as well as in the whole household investment portfolio.
If you are investing in coins for the long-term, the safest strategy is holding, but day-trading, or even casual trading can be profitable in the short term, allowing you to increase your stack relatively faster. Whether you’re a beginner to crypto trading or just trying to take a chance in this exciting new market, here are 10 mistakes you should avoid.
Consider Bitcoin as the base layer coin for the market as many of the exchanges price their altcoins against Bitcoin. Also, Bitcoin is often used as your base currency to get started with an exchange. What I mean by this is you will not be able to buy with your regular credit card, you will need to transfer in your Bitcoin and use that as the currency to purchase.
The benefit of a USD wallet on Coinbase is that you can put money in that and then buy coins instantly from the wallet. If you try to buy directly with your bank account, the transaction can take about a week. A credit card doesn’t have this problem, but limits are usually lower on a credit card. TIP: I almost always deposit USD in my wallet as opposed to buying coins directly from Coinbase via my bank account when using Coinbase to buy (I do this on-the-go sometimes). You can also wire money if you need the funds to be in the wallet faster. On that note, I almost always then use GDAX to buy/sell coins when I’m on a desktop (then use Coinbase as my wallet and mobile app).
The Coinbase smartphone app, however, offers a diverse feature set beyond what the Coinbase website delivers. Using the Coinbase app, which is available for both iOS and Android devices, it’s possible to purchase and store Bitcoin via in-app purchase functionality. In addition to Bitcoin, the Coinbase app also offers investors the ability to purchase either Etherium or Litecoin, the two most popular altcoins on the market.
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.
Don’t FOMO. This is a spot that people most frequently lose money on. A dash of manipulation, two tablespoons of media hype, a cup of CME and CBOE announcements, and a generous handful of FOMO drove Bitcoin prices from $10,000 to $20,000 in December. Since that time, Bitcoin fell to a low of $9,000 and is currently sitting at around $11,000. It’s easy to look back and say, “if only I waited one month, then I could’ve bought at $9,000 instead of waiting for Bitcoin to hit $20,000 again for me to break even.” But the reality is, the combination of 1) being greedy, 2) investing blindly, and 3) FOMO were likely large contributors to the purchase at an all-time-high. Even in the crazy world of cryptocurrency, if a coin pumps that quickly, it will correct — it’s a matter of time. Speculative pumps are almost always followed by dips. While trying to jump onto a train going full speed sounds like something straight out of a James Bond movie, I’m sure most of us can agree we would probably save some limbs if we just waited for it at the next stop.