Cryptocurrency Trading Tips Recommended For You

Cryptocurrency has become the winning game and you need daily cryptocurrency trading tips to trade successfully. There are various reports we get from diverse news platforms about cryptocurrencies and the market has been unstable due to the recent market correction.

Some months ago, as reported in the media, there has been a bubble in market prices, and that’s the issue, a lot of problems have been spotted but no one seems to be eager to provide solutions. Those who even care about guiding others, do so at a fee either in paid seminars, online courses, or other ways.

For this reason, we have decided to provide some useful trading tips to guide you, when the market seems to be discomforting.

In this post, we also share some of the most volatile cryptocurrencies you should steer clear of. These cryptocurrency tips are more like safety precautions. We know how sad it can be to lose your coins from improper guidelines in trading.

Therefore, how can those mistakes be avoided? How can we remain on the green side always?

First, you need to deal with crypto trading with so much understanding and attention to get a profitable outcome. Other than the tips that will be listed in this post, make sure to pay good attention to demand and supply in the trading market.

Now, let’s begin!

Daily Cryptocurrency Trading Tips

Below are the daily cryptocurrency trading tips you should know:

1. Have a Motive for Engaging each Trade

First, make sure you have a clear reason for getting into cryptocurrency trading. Be it day trading or scalping, you should have a reason for indulging.

Digital currency trading is a zero-sum game, you should know that in every win, there is an equivalent loss. When someone wins, someone else gets to lose.

The large “whales” controls the cryptocurrency market somewhat like the ones that put thousands of Bitcoins in the market order books. Now, what do these whales do best? They wait patiently for naive traders like me and you to fall into the trap of an avoidable mistake, and then they use it to their advantage.

Whether you are a scalper or day trader, sometimes it’s better for you not to gain anything on a particular trade than to get into losses.

From years of market analysis, I can assure you that on a certain day or period, you can remain profitable by avoiding some trades.

2. Set Targets for your Profit and use Stop Losses

Another daily cryptocurrency trading tip you could use for successful trading is setting profit targets as well as making use of stop loss.

Whether you are getting a bitcoin profit or not, you should know when to get out of any trade. You can cut your losses by creating a stop loss; a skill that most traders rarely have.

Choosing a stop loss can be a bit distressing because it is not a random activity. Don’t let your emotions guide you when doing so—the best point which you can set to stop loss is at the cost of your coin.

Let’s say, you purchased a coin at $1,000, the minimum you should trade for your coin should be at the same rate. This will guide you if the worst happens. You can leave with the amount you traded with in the first place.

The same is applicable to profit levels if you target to leave the market after making a minimum profit; hold on to that. Don’t let greediness cloud you. It doesn’t end well for anybody.

3. Welcome to FOMO!

FOMO, in the cryptocurrency world, means the “fear of missing out”. Most traders fail in trading for this reason.  looking at it from an outside viewpoint, it is a bad sight for people who make great profits in a short period from pumped-up coins.

Well, here’s what you should know…

Never get to a point where the green candles seem to scream at you and tell you to jump in. Now, at this point the large whales I talked about earlier will happily watch you buy the coins they purchased earlier at low prices.

And here’s what normally follows?  It’s the small traders that buy these coins guess what happens, the red candles pop up as a result of an oversupply, and then boom losses kick in.

4. Manage Your Risks

You should know how to manage your risk when trading cryptocurrency. You know what it means when they say little pigs eat a lot but the big ones get eaten.

That phrase truly projects the market profits when trading cryptocurrencies. Wise traders never get to assume massive profits. They prefer gathering up small but sure profits from basic trades on the bitcoin up the official app.

Take a step of investing little of your portfolio in a less liquid market. High trades require more patience, while the profit target points and stop loss will be granted further from the buying level.

5. Underlying Assets Create Volatile Market Conditions

The price of Bitcoin is a determinant of most altcoins. You should note that Bitcoin is quite volatile and relates to fiat currencies. The easier version of this is, that when the value of Bitcoin goes high, the value of altcoins becomes low and vice versa.

When the price of Bitcoin is volatile, the market becomes foggy as you would imagine, it is difficult to grasp what goes on in the market. At this point, it is wise to either have close targets for trades or not to trade at all.

6. Don’t Purchase Simply Because Price is Low

It is noted of beginners make the mistake of buying a coin because its price seems affordable. This is similar to someone who prefers Ripple instead of Ethereum all because Ripple is cheaper.

The market cap should determine your decision to invest in a coin and not its cheap price.

This is one of the daily cryptocurrency trading tips you should not ignore.

7. Pay Attention to Crowd-Sales/ICOs

It is vital for traders to be greatly cautious when looking forward to investing in any ICO(Initial Coin Offering).

During an ICO (Initial Coin Offering), startups provide the public with the early chance to trade in their idea using a crowded sale and these traders are granted tokens at a low price in return with the assurance to sell them out at a higher amount when listed on an exchange.

Time has proven that most tokens on the ICOs hit ten times higher than the value of the estimated returns. This shows how successful they are

8. Always Diversify!

Investments are unstable. Even those that seem to offer great returns can come crumbling down as a result of certain economic conditions.

Cryptocurrencies are even more unstable. Diversifying is the best way to avoid this become at one point, you can make thousands of profit and the next moment, you can lose everything.

Like I said earlier, the value of bitcoin against the dollar affects the value of other coins and vice versa. So, when another BTC loses its worth, other coins lose their worth as well.

You can see that diversifying is the best way to guide against bullish markets.

There was a time in late 2017/early 2018 when Bitcoin was at its high time. Everyone knew that the way forward was to purchase many digital currencies to earn more value over the dollar.

Also, in the second half of 2018, A lot of people got rich from Bitcoin in a short period of time than it has happened in history. Yes, billionaires were made but people do not seem to understand that many people also lost money.

And while this happened, the currency worked its market cap to more than thirty times higher in the past year only.

This shows that Bitcoin can be the base asset for traders but should also note that the dollar value should be checked.

Therefore, you should diversify your investment to avoid being cut up when the market gets bad. A viable investment that is not as risky as crypto you can engage in includes mutual funds, stocks, real estate, and a lot more.

5 Volatile Cryptocurrencies to Look Out For

The most volatile cryptocurrency is the one with the least market capitalization, and Ethereum Classic is the most volatile one. The next most volatile is  NEO, followed by Binance Coin, and then EOS, lastly Ethereum.

You should note that the most volatile crypto is also the best for day trading.