A quick look at the Bitcoin price over the last few years reveals a strong upward trend, but also times where the price was over and undervalued. Since most buyers and sellers are regular people and not professional traders, the cryptocurrency market is extremely sensitive to media hype and news stories. When the news is good, people rush to buy overvalued cryptocurrencies. When something bad happens, they panic and sell their coins at below their true value.
This is probably the most important factor to look at when deciding whether a cryptocurrency will survive into the future or not. Some cryptocurrencies, apart from acting as coins and trading assets, also provide platforms, serve as the fastest means to move money across the globe, try to solve a certain problem in society or in the cryptocurrency ecosystem, and do a lot more.
Bitcoin continued to find support at the bottom of the cloud and used it as a springboard to break back above the cloud. However, the lagging span, after breaking back above price, has reversed direction and seems to be moving back down while the Tekan Sen continues to trend below the Kijun. Price so far seems to be finding support at the Kijun and the top of the ...
Know when to take a loss. Nothing is less fun than taking a loss, but if you are going short in BTC and you haven’t set a stop, sometimes it makes more sense to take a loss and wait for a better price than it does to suddenly start going long. The best way to know when to hold ’em and or fold ’em is some basic TA on longer term charts (I will use things like MACD on 6hr – 12hr – 1 day candles to confirm trends) paired with unwavering discipline.
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TIP: A good first foray into cryptocurrency investing is the obvious, buying a major cryptocurrency like Bitcoin. After that, you’ll probably want to trade USD for crypto on an exchange like GDAX. Once you have done that, you could try trading BTC and ETH for other cryptocurrencies. Trading “crypto pairs” can be rewarding, but it is more complex and often more risky than just buying a single cryptocurrency as an investment.
If somehow, you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the biggest cryptocurrency — it currently has a 40%i share in the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates in the market. So, if Bitcoin continues to increase like it did in 2017, then investing in Bitcoin might be a good idea for 2018.
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We will see Lightning Network dramatically increase adoption in 2018. That being said, it’s really hard to predict development cycles and we could see Lightning Network growing slowly this year and only hit its stride in 2019/2020. I predict currency coins that do not adopt Lightning Network will lose market share to Bitcoin. BCH, Dash, Pivx appear particularly vulnerable.
Then there are the fundamental strategies. Some people say that fundamentals are the valuation of crypto, but it is challenging to value a cryptocurrency as there is no chart giving the earnings and the assets to derive a valuation from. Cryptocurrency is all about speculation, with one guy saying it’s worth a high price that reaches into the stratosphere while another says it’s worth squat.
Take profits. Some investors think “taking profits” is a dirty phrase, but it is a rather conservative strategy none-the-less. Taking profits can result in you making less money than you would have if you did nothing and just “let it ride”… but that is only true if Bitcoin goes up over the long term. If you have hefty profits, consider taking them off the table, and then waiting for a lower price in the future. Worst case, you can buy back in at a higher price later (leaving some potential profits on the table). TIP: If a coin just went up 400%… consider taking some profits. Cryptocurrency almost always corrects at some point after a big run. I personally would say HODLing after making 400% gains is called GREED. I won’t ever sell my full stack in one chunk, but I’m going to start averaging out when the MACD turns bearish after a 400% – 1,000% run if the run was somewhat organic. If the run was the result of a pump and dump, then I will likely take it all off the table quickly. Pump and dumps are frustrating events, like I said, watch out for manipulation.
No one actually knows how long this whole crypto thing will last but instead of losing sleep at night constantly checking token prices which have zero fundamentals behind them, I’d much rather invest in a real business that will make money whether Bitcoin prices go up or down. (Full disclosure: To satisfy my own curiosity, I do own a tiny amount of Bitcoin which won’t make me rich nor will it affect me if the whole space goes to zero).
The motivation for the investors is that the token will be traded from day one on the exchanges and would yield a nice profit to the ICO participants. In recent years, there have been many successful ICOs, both the project itself and especially in measuring the yield for investors. Coins doubled, or tripled, their value and much more in relation to their value on the crowd sale. Augur’s preliminary crowd-sale (we reported on it previously here) yielded investors a phenomenal 1,000% for their investment. Okay, but what’s the catch here? Not all the projects benefit their investors. Many ICOs proved to be complete scams, not only were they not being traded at all but some projects disappeared with the money and we have not heard from them right up to this day.
XRP is moving in upward channel. It's pullback for accumulation of positions for big players. The price always makes 2nd wave After such thing That's why I think it will continue to move down. Near 0.43 we can buy Ripple. P.S. Push like and subscribe, if you want to get more ideas in the future. Write in comment, What do you think about Ripple's future?
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Embrace volatility – Cryptocurrencies are famously volatile. The price of Bitcoin, for example, went from $3,000 down to $2,000 and then leapt up to nearly $5,000, all within three months in 2017. Whilst this means risk is high, it also means the potential for profit is great too. It’s always sensible to check the volatility of the exchange you decide to go with.