A Beginner’s Guide to Bitcoin and Altcoin Cryptocurrency Trading
September 09, 2018
The cryptocurrency industry is growing rapidly which is the result of the profit and the technology which makes cryptocurrency what it is. The Bitcoin was the first ever cryptocurrency that was invented which not only bought a cryptocurrency but also bought Blockchain technology to the market. The investors were lining up to get their hands on this new piece of technology which was and is considered the most secure method of payment. Apart from the security, the Bitcoin is also considered as the best asset that you can own in the modern market. Crypto coins other than Bitcoin known as Altcoin are also considered a valuable investment if done right.
There are many investors and celebrity investors who have made a fortune from their Bitcoin investment. This has encouraged many new investors to try their luck in the market. As profitable the cryptocurrency market is, it is also volatile which requires robust investment strategies to succeed. The veteran investors are aware of the market behaviour of the cryptocurrencies and they know when to invest in any cryptocurrency. The newbie in the cryptocurrency market has very less knowledge regarding any market situation of the cryptocurrency. Here are some tips that can guide these beginners in trading cryptocurrencies.
The cryptocurrency trading is just as the stock trading which requires a few things which can help you along the way.
Research – Initiating your first step in the cryptocurrency requires a vast knowledge regarding the complete platform. You can read up on blogs and watch tutorial videos regarding trading strategies, market preferences, before you start investing.
Time – The cryptocurrency trading requires a lot of time and dedication. The time to research and set up your complete trading system can ease the process of trading.
Capital – The cryptocurrencies are not particularly cheap if you are buying Bitcoin or some fancy Altcoin such as Ethereum, Ripple, etc. You need a separate investment fund that you can spare for crypto trading.
Wallet – The cryptocurrency that you buy needs a safe place where nobody can access them. As cryptocurrencies are valuable, there is a constant threat that looms around them. The crypto wallets are encrypted with a robust algorithm that secures your investment.
Timing is everything
As mentioned earlier, the cryptocurrency market is volatile which varies from time to time. Not every failing cryptocurrency is deemed to be unsuccessful. These altcoins have peak time which can help the trader generate profit. These altcoins can directly be traded for USD or other altcoins which can be more profitable. These altcoins can also be exchanged for Bitcoin on online Cryptocurrency Exchange platforms. The only thing to remember is that the trading should be based on the market position of the altcoin or Bitcoin at the time of investing.
Buy low – sell high
The cryptocurrency that you buy should be of low price which can be easier to buy. As the cryptocurrency market fluctuates, the price of the bought cryptocurrency can go high during which you can sell those cryptocurrencies. There are two types of payment that you can receive for your cryptocurrencies which are cryptocurrencies and local currencies. This method can help you make a great profit from the investment.
Trading style matters
There are mainly four types of traders in the cryptocurrency market.
- The day traders who invest in cryptocurrency with the intention of buying and selling the coins on the same day.
- The swing traders who look out for swings in the cryptocurrency market eventually holding cryptocurrencies for 2 to 6 days.
- The long-term holders who buy cryptocurrencies and hold them until a massive surge in the market and sell them at the highest price.
- The ICO investors who participate in token pre-sale and sell it after the token launches (that may take months).
The trading style should be based on the budget and capital that the investor has and can afford to spend. If you are a patient investor then you can opt for long-term or ICO (if that is your style). The swing trading and day trading is the typical trading scheme where you can flip your investment for instant profit.
Here are some tips that can help you to make a successful investment in Bitcoin and altcoin cryptocurrencies. You can use an Online Bitcoin Exchange platform such as Evonax which can help you get your Bitcoin investment or other altcoin investment instantly without any hassle. If you are stepping into the world of cryptocurrency trading then noting these points can help you in making a successful beginning.