There is no easier path to understanding crypto trading than just trading. The problem is, it's easier said than done. Still, if you know how, it’s something that can earn you good, consistent money.
To start with, trading with some understanding of the market including the basics of it, market movements, the reason behind the different market trends, and when to enter and exit a trade, puts you on the forefront of things. The best bet is always to put money into something you understand and understand well.
Many people don't like day trading but instead prefer long term holding of coins (hodling) or maybe investing in ICOs or other opportunities of making money in crypto, and that may be partly because it requires a lot of work to day-trade: you are going to need to keep an eye on the markets throughout, you will need to do your own analyses to determine which coins are the best buys and which are best sells, and then to base your analyses on current affairs and even rumors and pumps and dumps.
Further, crypto trading is way a ways much unpredictable because of volatility (the fact that prices can swing by huge ranges at a short time), which means prices are affected by way too many factors including pumps and dumps, regulation, politics, market sentiments which are in turn affected by all kinds of things including fuds and fake news as well as announcements from projects, in addition to the normal forces of supply and demand.
There is no single perfect way of knowing whether a cryptocurrency price or coin price will go up or down in future and especially by how much and for how long; therefore the decisions about when to buy or sell and when to cannot be not perfect. And crypto trading is not a perfecting game: you are going to have to expect losses, only to not let them be more than your profits.
Therefore, what we are actually talking about is the ability to make a near-correct judgement about when to buy or sell cryptocurrencies or when to not, increasing the chances that the judgement is made at the right time, and to take advantage of those judgements, especially when signals are clear in markets about when to sell or buy or just hold…since signals are sometimes clear about the direction of the movement of the price but are not in other times.
Buying/selling crypto because there is news about it or because others are buying/selling it may be helpful when there are long term effects of these primary actions causing people to buy or sell, but it is basically not an advisable approach because it may be too late to make a move. Rather, it is more advisable to build your trading strategy little by little and have a long term approach to trading crypto based on the knowledge and skills and trading experience you build over time instead of relying on rumors and announcements from projects on media sites. Always remember to buy the rumor and sell the news.
When it appears in the news, it may be time to exit a position about that crypto if it is too late. Finally, it is crucial to set long term and short term trading goals as a blanket guideline for your day to day trading actions.
- Buy the dips sell the rips
- When there is a buy signal and when there is a sell signal
-Buy during ICOs, CEOs and token sales
-Buy during bear markets
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