Investing in the cryptocurrency is not the same as investing in other types of assets. It is a new and also very interesting. You just know how to plan appropriate trading strategies, you will have many opportunities to make profits.
To get started, you should:
Choose a reliable cryptocurrency exchange: The exchange is where you make transactions to buy and sell cryptocurrencies – We offer those functions along with many other services: www.bitcoinvn.cloud
Choose a coin to trade: Or different coins will be better. As a beginner, you should invest in one of the popular coins with high market capitalization, such as Bitcoin, Ethereum, Bitcoin Cash or XRP.
Things to notice: There are several important things to note about the cryptocurrency market.
The market has big fluctuations: Within a few days the fluctuation of a coin’s value at 20-30% is possible.
Blockchain technology is new and still developing: One factor driving the volatility of the cryptocurrency market is that the technology behind it – blockchain – still very new and evolving daily. As the value of this technology platform benefits many industries, besides the cryptocurrency market, the value of cryptos also increase.
Only invest with money that you are willing to lose: The value of a currency goes up and down quickly. Blockchains and cryptocurrencies can be affected by hacks or bugs that devalue in unanticipated ways. Although the traditional stock market is volatile, if you are alert to make good decisions, you will rarely encounter big losses. But with cryptocurrencies, the risk of losing money is much higher. Please hold yourself.
Do your own research – DYOR: This is true for any investment, but it is especially important for cryptocurrencies. Find out in detail the cryptocurrencies you are considering buying to ensure they meet investment expectations or you especially love their special values. Remember, when you invest in a cryptocurrency, you make an investment in the company that created it, as well as investing in blockchain technology.
Avoid FOMO – Fear Of Missing Out: Cryptocurrencies are often easily overstated. This can lead to people rushing to buy what is being lauded for a high price, and then lose heavily when the value of the currency is devalued.
Diversify your portfolio: There are more than 1,500 cryptocurrencies on the market for you to choose from. Like playing stocks, you should invest only a few dependencies at risk while making many safe investments.
Take profit for a specified period of time: If you closely follow the crypto money market, you will find that the value of currencies can fluctuate at any time. If you are making short-term trades and seeing a sharp increase in the value, you will probably want to see if the price will increase further. But it will go down at some point.. So, determine a period of time that you *need* to take profits, the ability to earn stable profits will be higher.
Set stop loss for day trades: In this case, you set a stop loss to automatically sell when the price hits the set level. This function is very useful to limit losses for your trades.
Important points in the transaction
Long-term transactions:When using long-term trading strategies to invest in the stock market, one can rely on historical data to make decisions. However, for cryptocurrencies, the data is quite limited, so it is impossible to rely on the data to decide. However, those who prefer to use the long-term strategy often combine data evaluation with the most recent activities on the market to estimate that the currency will increase or decrease in value in the distant future. This strategy is great for investing in cryptocurrencies with a few year trading history.
Short-term transactions:Short-term trading has the opposite approach to long-term trading. It focuses on the return on investment over a short period of time. Ideally, you invest in a short time, when the price increases, you sell immediately to make a profit.
Technical analysis: Technical analysis is a method of analyzing currencies by studying factors related to the value of similar assets in the current market and according to historical trading volume and price data.
Essentially, this is an approach built on the idea that past data will determine future value.
You can perform these technical analysis (Liquid / this exchange) using supported charting tools.
Basic analysis: Fundamental analysis aims to price the coins based on the fundamentals of the project.
The application of basic analysis for crypto money faces many challenges, because cryptocurrency is not a corporate with clearly published financial statements. The viability of a coin depends on the supports of the community.
You can begin to perform basic analysis by researching the white paper, which outlines the goals and functions. You can also search content on crypto blogs or other community forums, such as Reddit.
Shaping the cryptocurrency investment strategy is not a guarantee of success. You need to keep up-to-date with relevant information on the changing market, implement the strategies outlined, and make sure that decisions are made as wisely as possible.
Good luck, traders!
The content of the above is not a financial advice and does not constitute the basis for investment decisions or suggestions for the trade of goods or products. Performing crypto transactions is complicated and there is always a certain level of financial risk, especially on loans. You should consider carefully whether or not you can adapt to the investment field, and take the time to study how it works and determine how much you are willing to go to learn.