Crypto is on the rise! Crypto bottoms out! The future is Crypto! Crypto is dead!
These are probably some of the headlines you’ve seen regarding Crypto currency over the past 12 months. We hear different reports from different outlets telling us conflicting views on the state of Crypto. Everyone seems to be an expert when it comes to pointing out the flaws of Crypto, yet no-one wants to provide a useful solution. People who DO think they have the answer, charge users a premium for them to spill the beans in a full day workshop program.
The team at CryptoSouk have another view. We believe that Crypto trading should be accessible for everyone. And that means providing you with the top tips you need to know when it comes to Crypto trading in today’s market.
Having some guidelines in place when it comes to trading Crypto is crucial to success. Trading requires attentiveness; it is not a gamble but a calculated process. In addition to our tips you also need to consider external market forces when making trading decisions.
So here we go, CryptoSouks top 10 tips for trading Crypto.
- Be clear on your motive for each trade
You need to know what your purpose and objective is with Crypto trading. Be clear from the outset why your doing it and what you’re setting out to accomplish. It’s important to know that for every win, there is a corresponding loss.
Most of the Crypto market is controlled by what we call “whales”. They wait patiently for inexperienced traders to make a mistake that results in more money in their digital wallets. The experienced traders will tell you that you don’t need to be involved with every trade. Sometimes the most profitable option is not to trade at all.
- Set your profit targets and your stop losses
For every trade you make, be sure you know when the right time is to get out. Whether your up or down, you need to know when to stop. Set in place a clear stop loss level to cut your losses from getting out of hand.
A stop loss is an order placed to sell a security when it reaches a specific price. Choosing a stop loss is not random, in most cases it will be set at the price of your digital coin. If for example your coin cost $5,000, that should be your minimum point at which you will trade it.
This guarantees that worse case, you walk away with your initial investment. The same principle applies to your profit levels. Set your profit level goal and exit at that point; being greedy could come back to bite you.
- Fear of missing out
When emotions come into play, trading is a dangerous game. Watching someone else make a profit from Crypto can stir up all kinds of emotions, leading to rash decisions that you’ll later regret. You risk buying coins that traders previously purchased for much lower prices. Next thing you know, there is an oversupply and the price plummets to new lows.
- Place heavy emphasis on managing risk
Just as we touched on above, emotions can be a dangerous thing in the Crypto trading game. Don’t go running in the direction of what you think is easy profit. Be patient and build up small but sure profits from regular trades. This requires patience, discipline and dramatically reduces the risk of losing all your money in a single trade.
- Volatile Market conditions
Due to the popularity of bitcoin; the prices of other coins often depend on Bitcoins market value. Given this, it’s important to know that Bitcoin can be very volatile. Always remember that if bitcoin goes up, other coins usually go down. This often makes it difficult for traders to understand what is happening in the market. When this happens, we recommend to not trade until you have a better understanding of market conditions and fluctuating prices.
- Just because the price is low, doesn’t mean it’s good value
If a coin is listed at an affordable price you may be tempted to jump in. However, low price doesn’t always mean good value. Market cap is a more important consideration than coin affordability. Just like the traditional stock market, stocks are measured by their market caps. This is worked out by Current Market Price x Total Number of Outstanding Shares. This same principal applies to Crypto trading. So similar to stocks, it is smarter to use the market cap of a Crypto to decide whether to invest or not. The higher the market cap, the higher the potential gain.
- What you need to know about ICO (initial coin offering)
During an ICO, a company selling a new project will give people the chance to invest in their idea early. The investors then receive tokens at a price lower than the anticipated sale price with the hope of making money. Investors have made great profits from ICOs with tokens often selling over ten times their original value. However, over time it proved that there was more than meets the eye with ICOs.
There have been many high-profile cases of ICOs being total scams, with investors losing all their money in the process. The team at CryptoSouk recommend treading with caution when it comes to an ICO. Do your research carefully and don’t get blindsided by the promise of high returns. Understand who is behind the project and understand their ability and history of delivering returns. Leave no stone left unturned, and if any doubt remains, walk away. You’ll thank us later.
- Quick tip for Altcoin investors
An altcoin refers to any coin seen as an alternative to Bitcoin. History shows us that many altcoins have ended up losing value in the long run. It’s therefore recommended to not hold on to altcoin for longer than needed. Look at the daily trading volume of your coin of choice to understand its suitability for long-term investment. High trading value is a good indication of good long-term investment; examples include Ethereum and Monero. Before committing make sure you understand price spikes and other patterns that need to be considered.
- Diversify your portfolio
We’ve said it before, and we’ll say it again; Crypto can be volatile at the best of times. The best way to avoid disaster is through diversification. Investing in various coins can ensure your overall digital wallet is not too heavily impacted if one of your investments falls through. Diversify away from one type of asset and spread the risk over different areas. This principle applies in the traditional stock market and Crypto trading is no different.
- Final tip
Placing sell orders is key to building wealth with Crypto. Put your revenue targets in place and set sell orders accordingly. This will make it more likely that you will get exactly what you are after. An added bonus of sell orders is that there are fewer transaction fees involved.
5 of the best coins you can trade with now
With these tips in mind, the team at CryptoSouk have analyzed some of the best coins for you to start trading with. Here are our top 5:
- Bitcoin: even if you don’t know much about Crypto you would have heard of bitcoin. Originally established in 2009 it controls the price of all other Cryptos. It is the most traded coin globally and a good starting point for new traders.
- Ethereum: the second largest traded coin after bitcoin. It is a decentralised platform, a coin and has recently launched a token known as ERC-20.
- Litecoin: One of the oldest Crypto coins available, Litecoin is one of the more efficient coins in terms of transaction speed.
- Ripple: a decentralised payment system that is both instant and secure. Unlike Litecoin, Ethereum and Bitcoin, it cannot be mined.
- Zcash: an up and coming coin that offers users transparency in all transactions. All transactions are kept private even after being recorded in the blockchain.
Now that you have key tips in your back pocket and you know the coins you can start trading with, it’s time to get cracking. Just make sure you have read and digested the tips above before diving in headfirst.
Keep your cool and be patient. Emotional trading will get you nowhere. When you are ready, head over to CryptoSouk.io, get signed up and verified within minutes and start your trading journey. Whether you’re a novice or a professional trader, CryptoSouk provides the best digital asset exchange for traders of all levels. It’s time to make the most of secure trade tools designed specifically for you.
The information contained within this website and resource section is not intended to be a substitute for financial advice or promotional offer on the investment or purchase of Cryptocurrencies, digital tokens or related assets. Although care has been taken in preparing the information provided to you on this site and in the resource section, we are not held responsible for any errors or omissions and accept no liability whatsoever for any damage or loss you may incur through the result of your own actions and decisions when deciding to purchase or invest in Cryptocurrencies or related digital assets. You should never engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. We recommend you always seek financial/or legal advice counsel relating to your investment and purchase circumstances. This material has been prepared for informational use only.