During the past several years, crypto trading has been garnering a remarkable amount of interest, even from individuals who have been investors in regular stocks for a significant amount of time.
Although we have all heard about the person who invested a couple hundred dollars in some micro cap coin and made five or even six figures, the reality is that there are a lot more people who lose money in crypto than there are who win it. One of the reasons why so many people are jumping into the cryptocurrency game is the promise of making millions of dollars seemingly overnight.
To assist you boost your chances of success in the world’s most unpredictable market, I’m going to share with you in this post some of the best crypto trading advice that I’ve picked up over the years.
You may have heard the expression “don’t marry your bags,” which simply means don’t get attached to a single cryptocurrency asset or even a handful of them. Since the goal of this endeavour is to make money, you want to be able to sell without getting emotional or feeling like you are “letting the team down.” There will be other investments that are just as good as, if not better than, the ones you love so much.
If you have less than $10,000 to invest, you should split your money out among several different projects. I wouldn’t recommend investing in more than ten different projects, however, because that would mean you were spreading yourself too thin.
Converting emails from TradingView into SMS alerts
Because of the lightning-fast pace at which crypto markets move, it is simple to pass over a lucrative entrance point or, even worse, a timely departure. You can take advantage of Tradingview’s fantastic feature that enables you to configure email to SMS alerts, which means that you will be notified via SMS whenever a particular price level has been reached.
The issue is that Tradingview does not have an SMS system that is now operational, which means that you will need to locate an SMS service that in fact possesses this functionality.
In addition to the fact that their platform actually connects into Tradingview in a direct manner, 160.com.au has compiled a straightforward guide that will walk you through the process of setting up Tradingview email to SMS alerts.
Don’t act like a “ape” in
If you have $1000 to invest, “aping in” suggests that you should spread out your investments rather than putting it all in at once. This is an example of “aping in.”
You should instead incorporate DCA, which stands for dollar cost average, into your positions.
If we are using $1,000 as an example, a good DCA strategy would have you invest $100 each time you see a decent red candle on Tradingview. If we are using $10,000 as an example, the strategy would have you invest $10,000.
You do this because price is always moving in waves; I can’t tell you how many times I’ve seen a cryptocurrency go up and up and up, only to see it crash back down to a level that was often lower than when it started. The reason you do this is because price is always moving in waves.
Using DCA enables you to get your average purchasing price down, keeping money in your pocket in case there is a large correction in the market that you may profit from.
Put your money in publicly traded companies.
Crypto is risky, and although the big money is made in the low and micro cap cryptos, they are also extremely risky. If you have a long-term view of your investment, take your time and invest in some of the top 20, which would make up 80-90 percent of your portfolio, and have 20-10 percent of your portfolio invested in moonshot cryptos. Crypto is risky, and although the big money is made in the low and micro cap cryptos, they are also extremely risky.
The price fluctuates in waves; try not to become emotional about it.
It is quite difficult for us to keep our emotions in check while we are investing our money because the price of the investment might easily go up or down.
If you missed a decent entry, just know that it will probably fall back down to the same position (or even lower) if you just have some patience and wait for it.
Alternately, if you got in at the top, all you need to do is DCA your way back down to average things out and lower your position.
Bitcoin is in control of the market.
Even if a cryptocurrency seems to be resisting bitcoin’s gravity, it will eventually come down. The same is true if bitcoin goes back up again; it will bring the rest of the market with it. If bitcoin goes down, then the gravity will draw all other alt coins down with it.
You can use Bitcoin’s price as an indicator of when to enter and exit trades if you keep a close eye on the cryptocurrency.
All markets are related
Despite the fact that bitcoin has a significant impact on the prices of alternative coins and that traditional markets have a significant impact on bitcoin, one of the best things you can do is keep an eye on the overall market to get a sense of how bitcoin will react.
For instance, according to one school of thought, the value of bitcoin experiences a downward trend whenever the DXY performs well, whereas bitcoin’s price experiences an upward trend whenever the DXY performs well.
Be aware of the industry in which you are investing “DYOR” is an acronym that stands for “do your own research,” and it is commonly used in the cryptocurrency and trading industries.
One of the first things you should do is download and read their whitepaper. This will provide you with all of the important information that you need to know, such as the team and their backgrounds, the tokenomics, what problem they are aiming to solve, etc. Downloading and reading their whitepaper should be one of the first things you do.
For people who are not comfortable with technology, crypto has a steep learning curve, which makes it that much more difficult to perform your homework.
Join the crypto project’s social media channels (Discord, Twitter, Telegram, etc.) and ask questions about the whitepaper. This is essential not only to learn about the product you could be investing in, but it also helps you understand other projects a lot faster, and it will make it much simpler for you to decide which projects to jump into (and especially which projects to avoid).
Put your money into legitimate teams.
When investing in cryptocurrencies, it is recommended to do so in teams that are easily identifiable, meaning that you can see the members’ faces, they have an established linked profile, a proven track record, etc. This is done to protect themselves from investors threatening them as well as from their government as laws can change and the team could be in for hefty penalty but it’s also a place for scammers to hide their identity, so beware of hidden teams. Because cryptocurrency is in a weird space in terms of regulations, a lot of teams will be anonymous. This is done to protect themselves from investors threatening them as well as from their government as laws can change and the team could be in for hefty penalty.