Crypto trading is one of the ways that crypto enthusiasts or investors can make money in the crypto world. First, you will need a cryptocurrency wallet – preferably a multi wallet that allows you to buy, sell and store multiple coins. Next, you will need a crypto trading account with your preferred cryptocurrency exchanges.
It is important to note that cryptocurrency trading is extremely volatile. The exchange market could be favorable now, causing investors to make huge and almost unbelievable wins. Then it could as well be very unfavorable causing huge painful losses. Always be on the lookout for coins with very strong market capitalization, this reduces but does not totally eliminate the chances of huge painful losses while trading. Now let’s look at 7 crypto trading in late 2019
1. Trade more in a bull market rather than in a bear market.
A lot of those new to cryptocurrency often fall for this cryptocurrency trading trap. As an investor, you need to go beyond that noise in the crypto world and dig deeper to understand exactly what is going on in the crypto market – with regards to how it would affect your investment. You can look out for cryptocurrency exchanges that not only help you store, buy or sell, but that also keeps you updated with crypto news. This news will help you stay abreast of trends or changes that could affect your investment. One of such changes is the shift from bull to bear market in the crypto world. Understanding such changes can help you prevent trading at times where you are at risk of losing your investments.
2. Using a crypto bot to help grow your portfolio passively
Passive income might not sound as interesting as the impressively huge profit margins crypto investors can get during a less volatile period in the crypto market. But growing your investments passively is a smart way for you to keep growing your various portfolios while waiting for another bull opportunity in the crypto market before you strike out again.
While laying low with your investments, you can make use of bots instead to grow your investments passively. These cryptocurrency bots are actually software programmes designed to intelligently manage crypto trades of the investor. These bots help save time spent figuring out what investment moves would yield better results and the ones that won’t. These bots also helps the investor save time and prevents loss of investment, by trading in less risky periods. These trading bots have their own unique algorithms that help it do this excellently.
3. Grow returns on investments by trading daily
Trading daily in the crypto world can really help with getting more returns on your investments. Although, this might seem tedious especially since it requires that you’re going to be keeping tabs on the changing crypto market as it may affect which coin you want to buy, sell or store. However, you can choose to opt for various cryptocurrency tools and apps that can help you keep track of certain coins that you’re hoping to invest in. On the other hand, you can also opt for cryptocurrency trading bots that will be programmed to help you trade daily.
4. Start trading with the safest coins to build up your investments quickly
The safest coins, as a cryptocurrency newbie, would be your best option when building your investment portfolio. Start buying, selling or storing safe coins like Bitcoin (BTC), Ethereum (ETH), Icon (ICX), Monero (XMR), or Litecoin (LTC).
5. Trading is not for everyone
Trading in the cryptocurrency market is quite different from the regular exchange market where you trade stocks, even though both exchanges experience some form of volatility. You need to have a clear laser-cut strategy for trading in the cryptocurrency market, otherwise, it would be a just an “investment exercise” in futility.
You don’t have to be bothered with tiresome trading techniques. Rather you can buy several coins about two to ten or more, depending on your investment capacity. Then after splitting your investments, secure your keys in a good wallet and leave it for a while until the market spikes in favor of the coins you have in your portfolio.
6. Use various tools to enhance your trades
As mentioned earlier you need both tools and strategies for trading excellently in the crypto market. You can start with trading any of the safe coins mentioned above (if you’re buying Bitcoin, buy from Coinbase as it’s the easiest place to buy Bitcoin). Next, use a mobile app to make it easy for you to keep track of your various investment portfolio (consider using Blockfolio – it is one of the best apps for tracking investment portfolios). Then you also need to ensure that your portfolios are not just tracked but protected also by using a very good cryptocurrency wallet. Consider using Trezor Hard Wallet – it is one of the best and reasonably affordable crypto wallets for keeping your investment safe. But using these tools, and several other tools that you lay your hands on can help you minimize the risks involved in trading.
7. Learn to hold your coins for long till you sense a jackpot
As mentioned earlier, being successful in cryptocurrency trades takes work. Spreading your investments in various safe coins and waiting a couple of years before selling it, is the lazy investor strategy which often yields some reasonable returns. You can also decide not to spread your investment, or still do, and just watch out for when the market will spike in favor of the coin you have and then sell it immediately.
Trading in cryptocurrency market takes quite a lot of time to get a hang of how the market works at the initial stage. But as you become more familiar with the market and as you keep researching and developing more personal strategies to help you make better investment decisions. Over time, you will become better at it and spend less time as much as you spent at the initial stage of trading.