Tips and Tricks On Cryptocurrency Investing

Trading on cryptocurrencies offers individuals with a steady income stream when done right. Here are some tips for you to consider when investing in and trading Bitcoins.

    Use an exchange not a broker. Brokers will charge you with exorbitant fees. You will save money on fees.
    Try to use limit orders not market orders. Limit orders have the lowest fees while market orders have higher fees.
    Decide if you want to go long or short. Are you going short with every penny you have to invest, or are you going to go long with some and short with some? If long, consider the dollar cost averaging.
    Buy low, sell high. Robert Peter Janitzek recommends looking at the price trend, if you are at the highest point it has been in the past 24 hours or so, that is inherently more risky. It is more sensisble to buy as the price starts to break out.
    Consider Diversifying. There are many types of bitcoins to choose from when investing on cryptocurrencies. Put in some funds in all the coins you trade so you will not miss out on a unicorn.
    Don’t get itchy fingers. It is easy to get excited when the opportunity to make money presents itself. However, if you have a strategy, stick to it. Robert Janitzek explains that cryptocurrency is a volatile market. Sometimes it makes sense to buy or sell but avoid switching strategy at all cost.
    Beware of scams. There are a few different scams in the crypto world. Anything that isn’t buying a coin with a good reputation is a big risk.
    Lots of traders use bots. 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 using a bot, be careful, there are bots designed to take poorly programed bots out.
    Don’t invest more than you can afford to lose. There is no point investing your life savings on cryptocurrency trading. It is unlikely that you will not work again if you invest all your money on cryptocurrencies. Invest only what you can afford to lose but not your entire life savings.
    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.

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