You ought to know that no trader wins 100% of the time. In fact, many successful traders win 60% of trades – this is an acceptable figure. To hold on to your wins and minimize your losses, you will need to put in place systems that guarantee this (see the Stop Losses and Take Profits section below).
In closing, I hope this info helps clear up some common mistakes I see new traders make. Not only that, I don’t often see these issues addressed. Even worse, I see “tips” about how to day trade that are totally the opposite of some of the advice I am giving here.
Cryptocurrency Trading is an alternative way to get involved in the Crypto-World! It doesn’t require mining hardware nor investing in bitcoin hyips or bitcoin cloud mining (which always has risk involved in their integrity).
Now that you know what forex and cryptocurrency exchanges/brokers are. We wanted to present you a list of so-called cryptocurrency forex exchange hybrids – initially forex platforms, which now also offer crypto as a trading option:
If you’ve already got a strategy that works, then a cryptocurrency trading robot may be worth considering. Once you’ve programmed your strategy, the bot will get to work, automatically executing trades when the pre-determined criteria are met. There are two benefits to this.
If you enjoy my article and want to keep up with my current and future ones on cryptocurrency investing, please follow my Medium page, and as always, if you have any questions you can always DM me on Twitter!
More coins would fly, and some of the returns were huge. Ripple and Digibyte were two of the best. Then during April and May, things started to get insane. Everything was flying, in May alone my portfolio jumped +158%. If someone had offered me that for the year when I started, I would have snapped their hands off.
The exchanges where people trade digital currencies have also come under scrutiny from South Korean authorities. Bithumb, one of the biggest cryptocurrency exchanges in the world, said it was visited by tax officials this week.
First of all, I recommend you to leave day trading to the bots! Go for longer term trades on recently heavily dumped coins. Don’t diversify too much, and don’t buy a lot of coins. You will end up only with scraps. Concentrate on few well researched coins instead. Hunt down coins with solid, new technology and buy the dips.
Isn’t there something out there in place to protect my potentially fake investment? Truth be told, you are sort of out of luck. You see, most of these ICO coin tokens are designed in a way that marks them as ‘software presale tokens.’ So essentially, your ICO coins are no different than a video game token that you bought before it launched. The main reason many developers choose to address their new currency in such a way is to avoid paying all the expenses that come alongside legal sales. In a similar matter, a developer of a newfound cryptocurrency might choose to say that his or her investors are ‘donating’ coins to their cause and what not. So while this is completely acceptable and falls under the same reasoning for why Bitcoin was invented in the first place, to decentralize and stop all the crazy fees that go into making these investments happen, it’s still relatively questionable.
Volumes indicate the liquidity of an asset. The greater the liquidity the easier it is to buy and sell, even when there is turmoil, and the lower the Bid-Offer spread and therefore the cost of trading. You want to avoid assets with tiny liquidity as when the shit hits the fan it will be costly to exit. Bitcoin has world-class liquidity. I run a crypoasset analysis site named Blocklink.info. Here is a screen-grab of the most liquid assets in the world.
One thing I’ve noticed is that the media, especially Twitter, can have huge effects of the market. If you decide that cryptocurrency is your new thing, if this is where you want to spend your time, then I strongly recommend that you educate yourself and improve your understanding of who to follow, who to trust, when to buy and when to hold.
Fortunately, many exchanges have developed the ability to place limit orders and stop orders. This means that you can decide what you want to do, buy or sell, when a currency hits a certain price ahead of time and have your order ready to go. Limit orders give you a lot of flexibility to plan ahead and get some sleep, even if you expect movement in markets overnight. For example, you may purchase a currency at $20 toward the end of your trading day and then place a limit order to sell when it hits $21 if you expect it to rise overnight. Of course, if you’re worried about losing your investment, you could also place a limit order to sell at $19 if it dips. If either of those things happens, the trade will take place automatically, even while you are sleeping.
The idea behind the blockchain comes with two main principals. The first is easy to understand, make all the transactions public thus allowing complete transparency over all transactions and the ability to cross reference or double check each transaction if necessary. The second principal is somewhat unique and isn’t realized by others. Recording each transaction in a public ledger also prevents this information from being duplicated. This way every transaction is unique in its own way, which successfully eliminates transaction fraud and other financial crimes. Oh, did we mention that verification of each transaction are done by other users on the Bitcoin network, and this can’t be compromised or corrupted by anything or anyone? Yep, it truly is that secure.
The problem is for every winner there is a loser. And the biggest winners are the ones who know what’s happening on the inside – they are the ones who can get the coin the cheapest which is kinda like house odds.