Trading with cryptocurrencies has become a popular job occupation as it is a well-known fact that these digital assets can provide people with a hefty profit. Studies show that there are around 7 million crypto users globally, and the number will likely double in the next few years.
2023 has been an extremely successful year for cryptocurrencies, which is why thousands of new people register to the network to start a new journey. Trading interests them a lot, and that is why we wanted to help them out a bit. We are going to name a few interesting tips on crypto trading that are worth knowing, and even though they are sort of general guidelines, they can make a lot of difference. Let’s check them out.
1. The Most Profitable Cryptocurrency
When trading crypto, you should always think of the most profitable and most dominant cryptocurrencies because they will provide you with the biggest chances of making money. With that being said, the most profitable cryptocurrency on the market is Bitcoin – its current value is around $65,955 and has the potential to rise to $100,000 by the end of 2023.
Ethereum is also worth a mention as it too comes with a fantastic value. Its price is around $4,756, and the best part about Ethereum is that it is not just a cryptocurrency – it is a whole network. Litecoin, Dogecoin, and Binance Coin close the top 5 most profitable cryptocurrencies.
2. Trading Sites Are The Best Option
Next up, we go to the process of trading itself. Cryptocurrencies like Bitcoin can be traded at special ATMs, but they have quite a few disadvantages, such as high fees. That is why the best option is trading sites like BitcoinCode. Once you register and verify your account, you can start the process of trading.
The best part about these trading sites is that they utilize AI systems that track the market and analyze its latest developments. In doing so, the systems are able to make accurate predictions on the future fluctuations in the price of your chosen cryptocurrency.
Furthermore, the aforementioned platform accepts numerous cryptocurrencies, which means that you’ll have plenty of options at your disposal.
3. Stablecoins Are Worth Considering
When most of us think of investing in cryptocurrencies, the first thing that comes to mind is Bitcoin. Bitcoin is a highly volatile cryptocurrency that has a solid profitability rate. But, there is another option for you if the goal is to pay for various services/products online. That option is called stable coins.
Unlike highly volatile cryptocurrencies, stablecoins are not affected by market fluctuations, which is why they manage to have a fixed value. Let’s take a look at Tether as an example. Tether is the world’s most popular stable coin, and it was established in 2015. Ever since its creation, the value of this cryptocurrency has never changed – it was always around $1.
The reason why stablecoins are not affected by market fluctuations is that they are tied to an outside asset (FIAT currencies, other cryptocurrencies, or precious metals). Tether is tied to the US dollar, and the company states that for each Tether that is released in the network, the company has $1 in-store.
4. Beware of FOMO
Fear of Missing Out is a common challenge that novice traders face. When trading highly volatile cryptocurrencies, novice traders may see a sudden rise in value, and since they think that the opportunity is too good to pass, they invest a lot of money. But, instead of rising, the cryptocurrency then records a drop in value. Hence, they lose money. Learning how to deal with FOMO can make a lot of difference.
If you want to succeed, you must have a deep understanding of this game and always try to look a little further than others. And keep in mind that many people often do not make rational decisions, which is the main reason why trading is not successful. Given the volatility of crypto, the loss is something hard to avoid. If you assess the loss as inevitable at one point, then simply close the position and don’t go any further in trading.
This is an unusually important part in which a distinction is made between those who know how to trade and succeed from those who trade chaotically and emotionally. Examples from practice indicate that a lot of traders get carried by their emotions and forget to stop on time thinking their current position and state in the wallet will stay unchanged.
Most often, their ego does not allow them to stop, even though they have exceeded all risk limits.
5. Learn to read the charts
If you ran away from math classes this is not the activity for you. Curves, trends, tracking ups, and downs are something that is taken for granted in this area. Those who know how to read what happens with currencies will recognize both their chances and possible gains. With higher or lesser risk or a dose of uncertainty. There’s one important saying that can be considered a rule in this game, and it goes like this: Never put all your eggs in one basket. If your basket falls, you will experience a debacle.
Crypto follows the same philosophy. Avoid investing in one project in the long run, no matter how tempting marketing makes it look. Many successful traders consider such investments a high risk.
So, when is the right time to start trading?
Right away. Now, today. The time is now, and couldn’t be better. However, keep in mind the following:
Do not start trading if you do not have optimal conditions for making good, rational decisions and if you do not have an exit plan. That is if you do not know when to leave the store.
Prepare for a certain level of pressure, the tension while doing this. This is not a computer game. And never rush! Be patient and wait for the right opportunity. Many good experiences show that this opportunity still comes. Do nothing without setting your goals first, because experienced players are lurking from all sides.
Take one step at a time. Good practice and successful strategies are often based on small purchase orders. Don’t let greed and irrationality lead you into an abyss and irretrievable loss.
In the end, it’s important to consider what the prediction says about the future of digital assets? They will for sure stay, however, only a couple will manage to stick around for a longer period. Which are these couple of coins? That’s another story, and at this point, we can only conclude the time will tell.